KÄÄPÄ Biotech announces series A funding round

The investment will be used in scaling up the production capacity of the Nordic Mushrooms product line

KÄÄPÄ Biotech is entering a series A investment round to scale up its production capacity, following increased demand for its Nordic Mushrooms range.

The medicinal mushroom market has experienced fast growth during the past few years, the company says. The product line includes Finnish grown organic chaga (Inonotus obliquus), reishi (Ganoderma lucidum), shiitake (Lentinula edodes), lion’s mane (Hericium erinaceus) and maitake (Grifola frondose).

"As a pioneer within the nutritional supplement industry, KÄÄPÄ implements the industry’s megatrends of sustainability, transparency and traceability. Sustainability is an integral part of KÄÄPÄ Biotech‘s business model. We have developed a fully transparent supply chain, focusing on organic Finnish grown ingredients, controlled from spore to shipment,” said Eric Puro, CEO of KÄÄPÄ Biotech.

The company says its done extensive research on the compounds of interest found in medicinal mushrooms, including beta-glucans. Its production methods are designed to safely produce pure and potent extracts.

"We have developed industry-leading ultrasonic-assisted extraction technology which is optimized for the bioavailability of the compounds of interest in our mushroom extracts. We are constantly researching, developing and commercialising new mushroom-based product innovations through the latest scientific methods available,” Puro said.

The investment will be used in scaling up the production capacity of the Nordic Mushrooms product line. The mushroom supply amounts will be scaled to match the demand by upgrading the indoor growing facilities, and the production equipment will be scaled up to produce larger batches of the product line.

"By raising the capital, it will be possible for us to say yes for all the large new customers. The feedback from the industry tells us that our product line is what the market has been waiting for. We are now looking for one to three strategic partners to raise three million euros to support our growth strategy and enter into industrial manufacturing stage,” Eric Puro said.