About episode
Today, we’re going to talk about mushrooms. More than a delicious pizza topping, fungi can be useful in many different ways and it might even play a heroic role in addressing climate change. How might mushrooms help? Let’s count some of the ways. They can be eaten and help reduce our dependence on animal protein. They can replace animal-based leather, sequester carbon, serve as a biofuel, improve soil health, and thereby reduce our need for fertilizers. They can accelerate reforestation, create an alternative to petroleum-based plastics and packaging, and finally, they can help break down and absorb pollutants.
This last use case is called bioremediation and it’s the focus of the startup Mycocycle – a company that’s making impressive progress using mushrooms to clean up waste.
We’re joined by Mycocycle Founder and CEO Joanne Rodriguez, as well as one of her investors Ryan Jeffrey, Senior Managing Director at the venture firm and accelerator, Gener8tor. We chatted about the opportunity to transform the waste management sector, how fungi can help, Mycocycle’s traction, Gener8tor’s investment thesis and how they’ve helped Joanne’s journey, and much more.
Hope you enjoy this one, mushroom jokes and all. Here we go.
In today’s episode, we cover:
- [3:25] Joanne’s background & how she got to where she is today
- [4:23] Ryan’s background & how he got to where he is today
- [5:52] What is Gener8tor?
- [7:11] Mycocycle, the problem it’s aiming to solve & the company’s approach
- [9:37] The process of leveraging the power of fungi & nature to break down waste
- [13:47] Why did Gener8tor decide to invest in Mycocycle?
- [16:14] The role of fungi in battling climate change & the opportunity
- [18:06] The fungi-for-bioremediation business model
- [20:45] Surprises & lessons of working with fungi
- [21:19] The Department of Energy’s Argonne National Labs & what it allowed Mycocycle to do
- [24:08] Mycocycle’s experience with Gener8tor’s accelerator
- [25:39] Mycocycle’s milestones
- [26:46] The types of companies that Mycocycle is looking to partner with right now
- [28:05] Mycocycle’s environmental impact & carbon measurement
- [29:34] John’s view of milestones & risks for Mycocycle to reach commercial success
- [30:57] How John sees the space in 3-5 years
- [33:15] How Joanne sees the space evolving & opportunities to improve waste management
- [36:34] What’s next for Mycocycle
- [37:36] A final mushroom joke
Joanne’s background & how she got to where she is today
Joanne, the founder and CEO of Mycocycle, has accumulated 30 years of experience in the construction products and materials manufacturing industry. Previously, as a Director of Sustainable and Strategic Initiatives, she played a crucial role in formulating zero-waste and low-carbon material strategies. Motivated by her background and the pressing need to address climate change, Joanne made the decision to leave her corporate position in 2017 and invest in herself, dedicating her efforts to combat the climate crisis.
Ryan’s background & how he got to where he is today
Ryan, the Senior Managing Director of Gener8tor, has a diverse background encompassing both investment and entrepreneurial experiences. Initially, he worked as an investor with a $200 million fund in Chicago before venturing into the tech industry and co-founding three different tech companies, which provided valuable insights from both successes and failures. After his last startup was acquired at the beginning of the pandemic in 2020, Ryan took time off and became a father, leading him to reflect on his career and prioritize addressing the critical challenge of climate change. He immersed himself in learning about the climate space and started supporting early-stage entrepreneurs dedicated to solving environmental and climate issues. This involvement ultimately led to a conversation with Gener8tor, expressing his interest in supporting sustainability and climate-focused initiatives. Subsequently, Gener8tor offered Ryan the opportunity to lead their sustainability-focused investments and programs, a role he has been fulfilling with enthusiasm for about a year and a half. In his current position, he is thrilled to collaborate with exceptional founders working on climate solutions.
What is Gener8tor?
GGener8tor is a well-established fund and accelerator that has been operating for a decade, supporting and investing in over 1,000 startups. With a track record of facilitating these startups in raising a cumulative total of over $1.4 billion in follow-on funding, Gener8tor has gained recognition, even earning the title of being one of the biggest accelerators that many people were previously unaware of, by TechCrunch. Their mission revolves around being a reliable partner and investing in the most promising talents within a community. Recognizing the urgency of climate change and its potential impact on communities, Gener8tor has shifted its focus to provide resources and support through various sustainability and climate-focused programs. Leveraging their platform and experience in supporting early-stage technology companies, Gener8tor aims to seize one of the greatest business opportunities of our generation: addressing climate and sustainability challenges.
Mycocycle, the problem it’s aiming to solve & the company’s approach
Mycocycle specializes in training mushrooms to convert waste into renewable biobased materials, addressing the problems of excessive waste, chemical pollution, limited space, and climate emissions. Joanne emphasizes the lack of innovation and value in traditional waste management practices, which often result in burning or burying waste. By leveraging the natural abilities of fungi, Mycocycle aims to tackle the waste industry, responsible for a significant portion of global methane and greenhouse gas emissions, using a nature-based solution. Their technology not only cleans and remediates toxins but also transforms waste into valuable materials, targeting the construction industry and the built environment, which contribute substantial greenhouse gas emissions. With the potential to tap into a market opportunity exceeding $14 trillion annually, Mycocycle seeks to transition from waste management to waste transformation, harnessing the power of nature that has proven effective for centuries.
The process of leveraging the power of fungi & nature to break down waste
Mycocycle has developed a patent-pending process that has significantly reduced the time required to break down waste using fungi, from six months to 10 to 14 days. Their three-step process begins at the point of waste generation, allowing them to decentralize waste management and minimize transportation needs. By blending the waste materials with lab-cultivated fungi and incubating them, Mycocycle produces a new low-carbon raw material suitable for manufacturing acoustic tile, concrete flooring, walls, and insulation, effectively closing the loop within the built environment sector.
Joanne highlights the potential of mycelium composites, similar to those produced by companies like Ecovative, which can replace plastics and other materials. Mycocycle’s approach involves creating composite materials using the cleaned waste and mycelium, which can be manipulated into various forms to meet the needs of manufacturers. Their business model is based on getting paid to clean up waste and then selling the resulting byproduct to others for use in new production or industrial processes. By monetizing both sides of the process, Mycocycle aims to incentivize companies to adopt their solution and overcome cost barriers. The potential for licensing deals and resale of raw materials, particularly as replacements for expensive raw materials used by large global corporations, presents a promising revenue opportunity while simultaneously achieving significant carbon reduction.
The role of fungi in battling climate change & the opportunity
Ryan acknowledges that he is not an expert on fungi, but he recognizes the potential impact of Mycocycle’s work in addressing climate change. His focus is on evaluating the company’s diligence and market opportunities, with the goal of supporting businesses that can make a significant impact in the fight against climate change. Ryan expresses particular enthusiasm for the bio-remediation space and the transformative potential of Mycocycle’s approach in the waste management industry. He emphasizes the importance of investing in companies that can bring about systemic change across entire industries. While fungi play a crucial role in waste diversion and the creation of reusable materials, Ryan also acknowledges the broader potential of nature-based solutions in combatting climate change.
Resources Mentioned
Connect with Joanne Rodriguez & Ryan Jeffrey
Connect with Jason Rissman
Keep up with Invested In Climate
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