A growing interest in fungi – encompassing mushrooms, mycelium, and microbes – is driving innovation across diverse sectors, from agriculture and construction to dyes and novel proteins. Now, The Fungi VC is stepping forward as a key investor focused on identifying the next generation of companies in this burgeoning field.
Pressure on industries to move away from fossil fuels, chemical-intensive processes, and resource-heavy solutions is creating opportunities for fresh types of businesses – and for investors seeking them out.
One niche gaining increasing attention is fungi, which can be utilized in a wide array of products.
The Fungi VC, launched in 2024, is positioning itself as a central player in this space.
The investment firm is led by Susanne Gløersen, who previously worked in sustainable finance at SEB and, more recently, built several initiatives in the field, including The Future is Fungi and its associated award, The Future is Fungi Award.
“I saw this enormous potential a few years ago and chose to leave SEB to build a global ecosystem around it,” Gløersen told Impact Loop.
She partnered with Tarja Zudemberg, from Sweden, who brings extensive experience investing in early-stage companies from her time at Almi Invest, to establish the dedicated fungi investment firm.
“I have always been interested in impact and nature-based solutions,” said Tarja Zudemberg.
Focusing on Fungi
At the core of The Fungi VC’s strategy is a focus on the untapped potential of fungi.
According to Gløersen, the area has been historically underutilized, but recent technological advancements are making it easier to apply fungi in industrial settings.
She describes the development as significantly larger than a single biotech trend. “I see this as the beginning of the next industrial revolution, where we leverage microbes, biology, and nature’s own systems instead of petrochemicals in a range of different industries,” said Gløersen.
Despite the seemingly narrow focus, they don’t view fungi as a small niche. Instead, they believe the field intersects with many sectors.
“This spans areas such as construction, packaging, food, agriculture, cosmetics, green chemistry, and energy. It’s a very broad investment field,” said Gløersen.
Zudemberg added: “It’s almost a little magical. You can use it for so many things.”
A Different Approach to Investment
The Fungi VC operates differently than a traditional venture capital fund with a fixed structure. Instead, they utilize a syndicate model where investors can participate in individual deals or across multiple investments.
Gløersen describes this as an attempt to build something more flexible than a classic VC structure.
“We are a bit new to the block and wish to do this in a new way,” said Gløersen.
Some investors commit to participating in several deals alongside The Fungi VC, while others join on a case-by-case basis.
“It’s a super syndicate. Some say they want to invest in seven to ten companies, while others come in case by case,” said Gløersen.
This approach also allows for a wider range of investors to participate.
“We bring together family offices and high-net-worth individuals in the same structure,” said Gløersen.
Entry points for family offices are typically higher, while angel investors can participate with smaller ticket sizes. According to Gløersen, The Fungi VC’s own investments in companies typically range from EUR100,000 to EUR400,000 (approximately $1.1 million to $4.3 million).
The investment timeline is also designed to be longer-term, recognizing that development and scaling in this sector often grab time.
“Biotechnology takes time. Although, we are looking at a possible exit after five to six years through ‘secondaries,’ and for that, we sometimes make follow-on investments when the companies are further along,” said Gløersen.
What They’re Looking For
When evaluating new investment opportunities, Gløersen emphasized several key factors: clear environmental benefits, research-based technology, scalability, and a relatively uncongested market.
“We like what is new,” said Gløersen.
She also noted their preference for technology-driven companies. “Preferably deeptech and things that actually break new ground.”
Geographically, they are not limited to the Nordic region.
“We seem globally, from pre-seed to Series A,” said Zudemberg.
Six Investments to Date
To date, Fungi VC has invested in six companies.
One is Anthology, a spinout from MIT and Harvard working on “genome engineering” for industrial applications of fungi. Another is Funga, which focuses on carbon sequestration and forestry by inoculating tree seedlings with fungi to accelerate growth and reduce mortality.
The portfolio also includes Norwegian company NoMy, which uses fungal fermentation to convert waste streams and food waste into new proteins, and US-based Michroma, which is developing fungal-based dyes to replace chemical-based colors in food.
Fungi VC has invested in German company Mycolever, which is building a platform for discovering and developing new fungal-based solutions, and Danish company Mycoverse, a spin-off from DTU developing fungal-based fungicides for agriculture.
Three to Five Investments This Year
A portion of the influx of deal flow comes from the network and global ecosystem built around the field. Gløersen noted that their fungi award received 187 applications last fall, which has also generated more potential investment opportunities.
The plan for this year is to continue building the portfolio.
“Now we are aiming to make three to five investments during the year,” said Gløersen.
In parallel, they aim to attract more investors to the structure.
“Right now, we are meeting with families and private investors who want to be involved in building this area.”
