MycoTechnology

Market position

The company describes itself as a leader in fungi-derived food ingredient innovation, with ClearIQ sold in more than 100 countries and an ingredient portfolio serving over 200 global clients. It has raised substantial capital from strategic food and agriculture investors and won industry recognition including first place in the 2020 Radicle Protein Challenge by Syngenta and Food Engineering's 2020 Sustainable Plant of the Year.

MycoTechnology contrasts its approach with conventional practice of masking bitterness and off-notes using sugar, salt or other strong-tasting additives: its fermentation-derived compounds instead bind to bitter taste receptors. Management states the fermentation process required about two years of work to make consistent and is protected by patents and trade secrets. Additional claimed differentiators include very low use levels, US labeling of ClearIQ as "natural flavor," clean-label positioning, and a sweet protein sweetener claimed at 1,000–2,500 times the sweetness of sucrose with expected cost-in-use below sugar.

Technology

The core technology is submerged-culture fermentation of mushroom mycelium. For ClearIQ, Cordyceps sinensis mycelium is fermented in sugary liquid in steel vessels, producing biomass and a liquid supernatant from which water is removed to yield a powder; the resulting compounds bind to bitter receptors on the tongue rather than masking off-notes with sugar, salt or other overwhelming ingredients. FermentIQ uses shiitake mycelium to ferment pea and rice protein. A newer platform produces whole fungal biomass for meat alternatives. The sweetener platform is based on identifying and isolating the sweet protein from honey truffles. Intellectual property is held as both patents and trade secrets. Production also uses multi-effect vacuum evaporation and spray drying.

Go-to-market

The company sells directly to industrial customers and works through flavor houses, co-manufacturers and distributors, using industry trade shows (its first ClearIQ powder was introduced at an IFT show in New Orleans) and partnerships with larger food companies to reach formulators. It has also pursued co-development partnerships, including with IFF in Europe and with JBS USA's plant-based subsidiary Planterra, and secured EU Novel Food authorization for FermentIQ to open European sales.

Food, beverage and nutrition companies, including major flavor houses, co-manufacturers, distributors and CPG brands, plus dietary supplement and alcoholic beverage formulators; the company reports over 200 global clients.

Geography

Headquarters and production are in Aurora, Colorado, US. ClearIQ is sold in more than 100 countries, and following its Series E the company said it would focus expansion on Europe, Asia and the Middle East. A new plant in Oman is planned to produce its fungi-based whole food ingredient for meat alternatives, expected to open in late 2025. FermentIQ gained European market access through EU Novel Food authorization.

History

MycoTechnology began by fermenting whole coffee and cacao beans — sterilizing, inoculating, fermenting for about a week and drying them before returning them to customers — but concluded the economics did not work and asked its science team for a powdered additive instead. The resulting powder, later named ClearIQ, was introduced at an IFT trade show in New Orleans. The company's first product was ClearTaste, described as the world's first certified organic bitter blocker, alongside PureTaste, a shiitake-fermented protein powder; these evolved into the ClearIQ and FermentIQ lines. In November 2017 the company leased 86,000 sq ft at 18250 E. 40th Ave. in Aurora, replacing a 7,000 sq ft facility on N. Chambers Road, and the resulting plant won Food Engineering's 2020 Sustainable Plant of the Year. It won the 2020 Radicle Protein Challenge by Syngenta, partnered with Planterra in 2021 and IFF in 2022, closed an $85 million Series E in March 2022, and gained EU Novel Food approval for FermentIQ in January 2023. Michael Leonard was appointed CEO in late 2023, with cofounder Alan Hahn previously serving as CEO.

Risks & controversies

Management notes that the plant-based meat category cooled after an initial wave of enthusiasm following Beyond Meat's 2019 IPO, as products failed to meet consumer expectations on taste, texture, price and nutrition; MycoTechnology customer Planterra, JBS's plant-based subsidiary, abruptly shut down. Operating fermentation in Colorado also exposes the company to high water costs, described as its top utility concern.