Skip to content
Briefings are running a touch slower this week while we rebuild the foundations.See roadmap
UK Startups and Innovation
29MAY

Mykor's £4m grows panels from mushrooms

3 min read
14:17UTC

Bristol's Mykor raised £4m on 27 May to grow building panels from mycelium, with £337m in orders signed before the first panel ships. Demand proven ahead of production, the opposite of most cleantech risk.

TechnologyDeveloping
Key takeaway

Mykor booked £337m in orders before shipping a single panel, inverting the usual cleantech risk.

Mykor, a Bristol company, raised £4m on Wednesday 27 May, led by the Clean Growth Fund with co-investors The FSE Group and Green Angel Ventures plus an Innovate UK grant, taking total funding to £7.5m 1. Mykor grows structural insulated panels from engineered mycelium, the root structure of fungi, and agricultural waste. The panels, branded MykoSIP, carry 60% less embodied carbon than conventional insulation and a Euroclass B fire rating, the European standard for limited combustibility. Co-founders Olivia Page and Valentina Dipietro are Forbes 30 Under 30 honourees, and the company employs 22 staff.

The number that separates Mykor from most cleantech is the order book: £337m in pre-production commercial agreements signed with UK and European contractors 2. That figure matters because it is signed before the first panel ships, which inverts the usual cleantech risk. Most materials startups burn capital proving a market exists; Mykor has booked demand and now needs to build supply. The £4m funds production capacity against contracts already in hand, not a hope that buyers will appear.

A Bristol firm with 22 staff is a different animal from a London AI raise, and that is the point. The regional, non-Golden-Triangle deeptech tier is alive, echoing earlier rounds outside the south-east such as Rivan's £25m for a synthetic-gas plant in Wiltshire and the regional life-sciences manufacturing sites the Life Sciences Innovative Manufacturing Fund backed in April . These companies raise from cleantech specialists and grant bodies, not the funds chasing the next billion-dollar AI label, which is exactly why the aggregate capital figures pass them by while the work goes on.

Deep Analysis

In plain English

Most building insulation, the material packed into walls to keep heat in, comes from mineral wool (rock or glass fibres) or plastic foam. Both require energy-intensive industrial processes to make, which creates carbon emissions before the building even opens. This is called 'embodied carbon'. Mykor grows its panels from mycelium, the root-like network of a fungus, combined with agricultural waste like straw or husks. The mycelium binds the waste material together into a rigid panel. Growing the panels uses far less energy than manufacturing conventional insulation, so the embodied carbon is roughly 60% lower. The fire rating matters because buildings have to pass fire safety tests; Mykor's panels have achieved a Euroclass B rating, which means they meet the standard required for most commercial and residential construction. The £337m in pre-production agreements means large building contractors have already committed to buy these panels once production scales up, before the first production line reaches full volume.

Deep Analysis
Root Causes

UK construction's embodied-carbon problem persists for two reasons operating at different speeds. In the short term, procurement departments at large contractors price on upfront material cost rather than whole-life carbon cost, because planning and building regulations do not yet require embodied-carbon reporting.

Mykor's pre-production agreements are an early signal that the 2025 Future Homes Standard consultation, which proposed mandatory whole-life carbon assessments, is already shifting contractor behaviour ahead of legal requirement.

In the medium term, the clean-build materials market lacks a domestic institutional anchor comparable to Longwall for deeptech. The Clean Growth Fund, which led Mykor's round, is the primary UK-domiciled cleantech early-stage vehicle at this cheque size. Innovate UK grant co-funding supplements equity but does not replace it. The result is a concentration of supply: if Clean Growth Fund's follow-on appetite changes, Mykor's next round has limited alternative domestic leads.

What could happen next?
  • Opportunity

    The £337m pre-production pipeline, if it converts at standard construction industry lead times of 2-4 years, would take Mykor from a £7.5m funded startup to a company with material revenue comparable to its total funding raise, without requiring additional equity.

  • Risk

    Installer-skills gaps for biogenic panel systems could delay conversion of the pre-production pipeline; the Ecovative precedent shows 4-6 year lags between signing and volume delivery for novel materials.

First Reported In

Update #6 · Orbital's $50m has no UK lead

Tech Funding News· 29 May 2026
Read original
Causes and effects
This Event
Mykor's £4m grows panels from mushrooms
A Bristol cleantech raise with orders booked pre-production shows the regional deeptech tier the AI mega-rounds skip is alive and selling.
Different Perspectives
European limited partners (Plural, Aviva Investors)
European limited partners (Plural, Aviva Investors)
Pan-European fund Plural led Orbital's $50m and Aviva Investors co-anchored the BBB's Lansdowne spinout fund (event ID:3505), demonstrating that Continental and UK institutional capital can fill the growth-stage tier independently, though neither has the scale to compete with US growth funds at the $100m+ band that successive ex-DeepMind rounds will eventually reach.
France (DSIT / GENCI / Institut Pasteur)
France (DSIT / GENCI / Institut Pasteur)
France signed the UK-France Strategic Biomedical Alliance on 29 May, contributing €330,000 a year to researcher mobility and linking GENCI national compute to Isambard-AI; the bilateral format suits Paris because it produces scientific access without requiring EU-framework ratification while the UK-EU science relationship remains unsettled.
US growth investors (NVentures, General Catalyst, Crosspoint Capital)
US growth investors (NVentures, General Catalyst, Crosspoint Capital)
NVentures entering Orbital's cap table for the first time and General Catalyst following on in Geordie's Series A signals US growth investors treating London deeptech as a buy-side opportunity the UK market cannot contest. NVentures gains supply-chain visibility into GPU cooling; General Catalyst gains a frontier security category the RSAC prize has already validated for US enterprise.
UK Government (DSIT / British Business Bank)
UK Government (DSIT / British Business Bank)
The BBB cornerstoned Longwall at the seed floor on 27 May while DSIT signed the UK-France bilateral compute deal the same week, deploying state capital at bottom and research layers simultaneously. Neither instrument addresses the Series B middle the April 2026 mandate expansion could reach but has not.
Australian Department of Defence (AUKUS partner, Rowden Technologies)
Australian Department of Defence (AUKUS partner, Rowden Technologies)
Rowden Technologies holds active AUKUS AI for Acoustics contracts with the UK, US and Australian defence establishments. The NWF's £25m investment in Rowden on 13 May places UK sovereign capital directly into a trilateral programme Australia co-funds; from Canberra's perspective, the NWF cheque increases UK government skin-in-the-game on a programme where Australia has already committed co-development resources.
Temasek (Singapore sovereign co-investor, Isomorphic Series B)
Temasek (Singapore sovereign co-investor, Isomorphic Series B)
Temasek co-invested with the SAIU in Isomorphic's $2.1bn Series B the previous week, treating a majority Alphabet-owned company as a valid sovereign co-investment target. Fractile's round, without a UK sovereign co-investor, reads differently from Singapore's vantage: allied state capital (NATO-IF, In-Q-Tel) is now competing with Asian sovereign funds for early positions in UK deeptech.