Proper fermentation Startup Michroma announced that it has closed $6.4M in seed funding to fast-track commercialization of its sustainable, mushroom-derived natural food coloring. The round, led by General Mills-backed Supply Chain Capital, will help the startup expand research and development capabilities and expand its component platform.
“Developing Better-Performance Natural Dyes Powered by Microma Fungi”
Founded in 2019, Michroma is working to disrupt the global ingredients industry with high-performance pigments made from fungi through precision fermentation. To achieve this, Michroma focuses on creating ‘Fungal biofactories’ to more efficiently produce small molecules such as dyes.
“We see attractive market and consumer potential for Michroma’s fungal platform to create next-generation natural ingredients, from colors to flavors, that are healthier and more sustainable and maximize production efficiency,” said Noramay Cadena, Managing Director of Supply Change Capital. and Michroma board member. “We are excited by the speed and efficiency with which they are building their capabilities. Even more, in light of the current disruption of global supply chains, we believe that Michroma is laying the foundation for the sustainable ingredients of the future.”
New red pigment
Driven by growing market demand for healthier ingredients, Michroma is developing a novel red color called Red+, which is temperature-resistant and stable across the entire food pH spectrum.
According to the startup, these qualities allow Red+ to survive processes such as pasteurization, cooking and extrusion, which are among the most intensive processes for natural dyes. Other colors, such as blue and white, are also in the works.
With its breakthrough, Michroma’s pigments could replace common, non-vegan dyes like carmine (made from crushed insects) as well as petroleum-based dyes, such as the controversial Red No. 3, in the food ingredient value chain.
“We are harnessing the power and versatility of filamentous fungi with our SynBio platform,” said Michroma’s CSO and co-founder, Dr. Mauricio Bria. “By combining a unique fungal chassis strain with precision fermentation, we are able to produce high-value complex molecules with high yields previously unseen in the biotech industry.”
Looking for alternatives
The company said its product pipeline is starting with warm colors, which comprise 90% of the food market, and will include other colors and novel flavor combinations to provide integrated solutions for companies.
Research shows that 92% of consumers are concerned about artificial colors in food, and major food manufacturers such as Burger King, Nestle, Kraft, Mars and General Mills are moving away from such colors to meet demand for natural ingredients.
The $6.4M round was led by Supply Change Capital, a food tech VC backed by 301 INC, the venture capital arm of General Mills. New investors include Be8 Ventures, a global food company. Backed by Oetker and Korean company CJ Cheiljedang.
“Best-performing” colors
“We are poised to meet consumer demand for healthier and more sustainable foods without petroleum-based ingredients,” said Michroma CEO and co-founder, Ricky Cassini. “Unlike the current generation of unstable natural alternatives, such as betalains, carminic acid and anthocyanins, Microma is creating well-functioning natural colors powered by fungi. This next phase of our development will help us industrialize our fungal platform and transform it into the world’s natural color.”