Nature’s Fynd Brings in $45M, Adds CPG Veterans

Chicago-based food tech company Nature’s Fynd announced this week it has raised $45 million in funding and has added four new food industry veterans as the company gears up to bring its animal-free meat and dairy alternatives made from fungi protein to market next year.

The funding is comprised of venture debt and equipment financing from Oxford Finance and Trinity Capital. The capital raise follows an $80 million funding round of capital closed in March, which coincided with a rebrand and shift from ingredient supplier to that of branded food and beverage producer. Under its previous moniker, Sustainable Bioproducts, the company previously raised $33 million in 2018.

Co-founder and Chief Science Officer Mark Kozubal first discovered the new protein source within Yellowstone National Park’s geothermal springs while doing NASA-supported research. That discovery became the basis for Fy, a fungi-based protein grown through a fermentation process. Fy is a complete protein containing 20 amino acids, including the nine essential amino acids, that uses 99% less land than beef production, the company said.

According to the company, the loans will be used to accelerate its go-to-market strategies and “ensure optimal capital efficiency.” It plans to launch vegan meat and dairy alternative products in retail next year, though it has yet to disclose what product it will launch, when these items will launch or its retail strategy. According to Nature’s Fynd CMO Karuna Rawal, the company is still “in conversations determining specific go-to-market strategy details and will announce our launch plan soon.”

To also accelerate this growth, Nature’s Fynd has hired four industry experts to join its team, who will assist the brand across R&D, sales, manufacturing and engineering and “will significantly advance the commercial success of our products,” co-founder and CEO Thomas Jonas said in a press release.

Baljit Singh, former VP of food research at ADM, whose venture capital arm participated in March’s funding round, has joined as the company’s SVP of food innovation. After 16 years at Bel Brands USA, most recently serving as a plant director producing 25 million pounds of cheese annually, Emilie Runac has been named company’s new director of manufacturing. Pat Dalugdug, who previously held various sales roles at KIND Snacks, Bulletproof and Danone North America, will serve as the company’s director of sales. Using his fermentation experience after 16 years at Cargill, Tom Frey has been named the director of project engineering at Nature’s Fynd, as the company works to scale production for a commercial launch.

With the investments in talent, in June the company also opened a 35,000 square foot facility in Chicagoto produce Fy. It also operates an R&D facility in Bozeman, Montana, though it will use co-packers to ultimately produce the finished goods made with Fy.

Nature’s Fynd is not the only fungi protein brand drawing investor interest. Last month, meat alternative startup Meati, which uses fermented fungi mycelium (also a complete protein), announced it had raised $28 million to scale production of its fungi-based chicken and steak cuts. Amidst a growing pool of options, Fy’s “naturally mild flavor profile which allows for accentuating flavors,” will be a competitive benefit for the company, Rawal said, as its versatility enables the company to utilize the ingredient across a range of food and beverage products. Rawal also said Nature’s Fynd’s main point of difference from competitors like Meati is that it can be grown “without the need for soil, land or water.”

This sustainable production of Fy is part of the brand’s ultimate goal to “unlock the potential of our planet for future generations,” according to the company’s website.

“We’re at a pivotal moment where changing the way we all eat to take better care of our health and to care for our planet is crucial,” Jonas said in a press release. “Now Nature’s Fynd needs to bring these delicious foods to market so we can all be part of the solution to climate change.”