Boarding PassMadeRight is harnessing fungi to create sustainable food packaging
Boarding Pass
MadeRight is harnessing fungi to create sustainable food packaging
The company has raised a total of $2 million to tap into the $350 billion food packaging market
“Within the broader context of the global food industry, the food packaging market holds a pivotal role,” explained MadeRight. “It protects and prolongs the shelf life of food products while providing essential information to consumers, making packaging indispensable.”
According to the company, the worldwide food packaging market is worth $350 billion with an annual growth rate of 5-6%. This trajectory is driven by forces such as population expansion, urbanization trends, the burgeoning food and beverage sector, and advancements in packaging technology.
MadeRight harnesses the capabilities of fungi to create sustainable materials. Through a fermentation process that uses fungi cultivated from industrial organic waste, it makes sustainable, high-performance materials.
“Despite the recyclability of many packaging materials, global recycling rates remain low at around 10%, mainly due to plastic additives mixed into the packaging to extend product shelf life. These additives hinder recyclability, and MadeRight aims to replace them with sustainable fungi-based materials,” the company added
You can learn more about MadeRight below
Company Name: MadeRight
Sector: Climatech - including Foodtech and Agtech
Product/Service description:
MadeRight harnesses the remarkable capabilities of fungi to create sustainable materials. Through a fermentation process that employs fungi cultivated from industrial organic waste, the company produces sustainable, high-performance materials. Currently, MadeRight is developing a solution to improve the quality of plastic packaging by replacing fossil-derived materials. This revolutionary production method seamlessly integrates into existing supply chains and packaging machinery, with the ultimate goal of achieving cost-effectiveness comparable to prevailing packaging production procedures within food, cosmetics, and other industries.
MadeRight employs fungi to create sustainable materials; our first product helps solve the plastic packaging crisis.
Our product generates plastic pellets that seamlessly integrate into existing machinery at a cost comparable to traditional solutions. The innovative three-step process begins by (1) feeding organic waste to nurture fungi, followed by (2) separating high-value materials from the fungi. Lastly, we (3) seamlessly incorporate our fungal materials with bioplastics, enhancing packaging performance and extending the shelf life of products.
Founder Bios:
Rotem Cahanovitc - Founder and CEO: a mycology expert and enthusiast, Rotem is at the forefront of innovation in using fungi for materials, driving the transition towards a flourishing, sustainable circular economy. As a scientist in training, Rotem founded MadeRight with a visionary outlook, aiming to expand the applications of fungi as a basis for producing the industrial materials of the future, starting with packaging. He strongly believes that humanity's imminent industrial revolution will revolve around cultivating materials rather than merely synthesizing them, as is currently done. This ambitious objective entails harnessing fungi's industrial capabilities to grow commercially competitive products that are accessible to everyone, providing long-term support for Earth and its growing population.
Yotam David - Founder and CTO: A molecular geneticist, biotechnology enthusiast, and a strong advocate for sustainable living practices. Today, he is actively bridging the gap between industry and sustainability by harnessing the power of fungi. As the Founder and CTO of MadeRight, Yotam spearheads the company's innovative and trailblazing scientific efforts, aiming to unlock the vast potential of fungi for producing cutting-edge industrial materials. This endeavor begins with our flagship initiative: #PackagingMadeRight.
Year of Founding: 2022
Last Investment Round: N/A
Last Investment Stage: Pre-Seed
Date of Last Investment: August 2023
Total investment to date: $2 million
Investors (leading and all): Leading by Fresh Start, Arkin Holdings, Arc Impact
Current number of employees: 7
Open positions: N/A
How was the idea born?
CEO Rotem Cahanovitch got the idea for the company when he was living in Ethiopia and witnessed families simply burning all their plastic waste to dispose of it. It was there that he first started contemplating the possibility of producing better plastic that could be easily recycled or even composted. The next step was to consider how feasible it would be to produce this kind of plastic. To achieve this, he utilized all the knowledge he had acquired during his studies and came up with the concept of cultivating fungi on industrial by-products and waste, and using them to create a material that facilitates recycling.
What is the need for the product?
Within the broader context of the global food industry, the food packaging market holds a pivotal role. It protects and prolongs the shelf life of food products while providing essential information to consumers, making packaging indispensable. Currently, the worldwide food packaging market boasts an approximate value of $350 billion, with an annual growth rate of 5-6%. This upward trajectory is driven by multifaceted forces, including population expansion, urbanization trends, the burgeoning food and beverage sector, and significant advancements in packaging technology.
The food packaging industry carries substantial environmental implications, largely due to the widespread use of plastic. A significant portion of food packaging relies on single-use plastic, contributing continuously to the growing waste generation. Each year, millions of tons of plastic packaging waste are produced, leading to ocean, air, and soil pollution, along with other environmental challenges. Additionally, the production of packaging materials such as plastic, glass, and metal consumes energy and resources, resulting in carbon emissions. The entire lifecycle of food packaging, from production to recycling or landfilling, leaves a substantial carbon footprint.
Despite the recyclability of many packaging materials, global recycling rates remain low at around 10%, mainly due to plastic additives mixed into the packaging to extend product shelf life. These additives hinder recyclability, and MadeRight aims to replace them with sustainable fungi-based materials.
How is it changing the market?
Currently, there is a tradeoff between performance and sustainability. We frequently encounter fossil-based materials that provide an extended shelf life but harm our planet, or sustainable materials that are recyclable or compostable but lack sufficient shelf life. MadeRight, however, is pioneering the production of novel materials derived from fungi, striking a balance between high performance and sustainability.
How big is the market for the product and who are its main customers?
Currently, the global food packaging market holds a value of approximately $350 billion, with an annual growth rate of 5-6%. This upward trajectory is driven by multifaceted forces, including population expansion, urbanization trends, the thriving food and beverage sector, and significant advancements in packaging technology. MadeRight's customers are plastic and packaging producers.
Does the product exist already? If not - at what stage is it and when is it expected to hit the market?
MadeRight is pre-product aiming to reach a commercially applicable prototype by the end of 2024.
Who are the main competitors in this sector and how big are they?
Companies like Kuraray, with a net income of 2.6 billion JPY and employing 11,000 people, are engaged in producing fossil-based products such as EVOH.
What is the added value that the founders bring to the company and the product?
The founders possess the expertise to leverage fungi fermentation for producing high yields. The synergy between a molecular geneticist and a mycology expert adds significant value to a startup company that aims to drive substantial change and advance sustainable packaging.
What will the money coming in from the round be used for?
Approximately a year after its establishment and operating within the Fresh Start Incubator in Kiryat Shmona, the funds obtained from this round will be directed toward expanding the development team and refining the production process. The objective is to achieve a commercially viable prototype. Additionally, these funds will support marketing efforts, enabling MadeRight to enter new markets worldwide.
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