Israeli biotech startup MadeRight, which has developed a process of cultivating fungi for green packaging, has nabbed $2 million in seed funding to drive the production of eco-friendly industrial materials.
The funding round was led by Fresh Start foodtech incubator and group of investors including Israeli venture capital firm Arkin Holdings and ARC Impact, that back on early-stage startups.
Founded in 2022 by CEO Rotem Cahanovitc, a mycology expert, and CTO Yotam David, a molecular geneticist, Made Right is harnessing the way fungi function as natural recyclers to replace harmful materials in plastic packaging and reduce their environmental impact.
The startup is deploying fermentation technology to cultivate fungi grown on organic industrial waste such as wood chips, to produce sustainable materials that are biodegradable and free from pollutants to create a recyclable plastic alternative for packaging. The compounds are mixed with bio-plastics to create pellets that can be used and integrated in existing machinery and supply chain processes in the packaging industry.
“Fungi serve as nature’s recyclers, thriving on what we consider waste,” said Cahanovitc. “We harness the potential of fungi to fashion materials from renewable sources, fostering an economic circularity that will steer the future’s material revolution.”
Cahanovitc told The Times of Israel that the founding idea for the technology evolved after completing his volunteer work in Ethiopia, where he was confronted with the stark reality of families burning their plastic waste as a means of disposal.
“The concept of waste is a human construct, absent in the natural order, where Earth’s recyclers are fungi,” said Cahanovitc. “This realization spurred my contemplation of revolutionizing plastic production, aiming for plastics that could be effortlessly recycled or even composted.”
Over the past two decades, the amount of plastic waste has doubled, with most ending up in landfill, leaking into waste, soil and air, according to a report by the OECD. The amount of plastic waste produced globally is expected to almost triple by 2060, with only less than a fifth recycled.
