Hastings start-up promising the ‘future of protein’ draws investors

Turning dairy waste into a revenue stream for farmers: Mara Bio chief scientific officer Dr Maya Tangestani.

Take some edible fungi, add some dairy waste otherwise destined for landfill, ferment it using a secret process, then you’ve got what Mara Bio calls “Flexitein” - a “protein and dietary fibre rich” ingredient that can be used in the likes of oat milk ice cream, protein-enriched pasta, and protein bars and shakes.

The two-year-old Hawke’s Bay startup has just $1 million in a seed round led by the Climate Venture Capital Fund and supported by Sir Stephen Tindall’s K1W1.

The pre-commercial, three-person company, based at the part Government-funded FoodEast Haumako innovation hub in Hastings, will use the funds to move from “benchtop production” to a pilot plant to refine their processes and ready for mass production. Funds will also go to hiring more staff, intellectual property protection and securing regulatory approvals.

A protein flex: Mara Bio chief commercial officer Steve Boggs, chief scientific officer Dr Maya Tangestani and chief executive Mark Balchin.

Chief executive Mark Balchin (formerly chief manufacturing officer for medicinal cannabis startup Cannasouth - which went south, or at least into voluntary liquidation, in March) says Mara Bio’s fermentation process involves fungal mycelium (the root system of fungus) is mixed with dairy acid whey, a waste product of casein and protein extraction.

Graphic / Mara bio

The result is an “apple puree” like slurry that can be blended with meat to form a high-protein meat product, or turned into a dry powder with a 30 to 50% protein component that can be used in a wide range of products.

Flexitein can be processed into a tasteless, odourless powder that can be used as an ingredient in high protein food or drinks. Graphic / Mara Bio

There are rivals, but Mara Bio says its process produces 33% fewer emissions and uses 80% less fresh water than existing mycoprotein producers.

Balchin says the startup has drawn strong interest from the dairy industry, including from the US, UK and Europe.

In February, Mara Bio won the top award at Australia’s Agriventures evokeAG conference, from 50 startups who were exhibiting at the event.

This year also saw Mara awarded a place in the Mass Challenge accelerator in Switzerland, one of just 8% of 1500 applicants.

Climate VC Fund partner Dr Jez Weston says Mara Bio is an attractive investment proposition because it lines up with the needs of the existing food industry.

“We know that major food producers such as dairy companies have committed to reducing their emissions footprints substantially,” he says.

“Mara Bio is going to help them turn byproducts into a new revenue stream.”

Mark Balchin says, “Having the backing of two of New Zealand’s leading investment funds is a major milestone for Mara Bio.

“Their support brings not only the capital to accelerate our growth both locally and internationally, but also strong validation of our mission and the potential of our technology.

“With growing interest from global ingredient companies, this investment will help pave the way for new partnerships and commercial opportunities on the world stage.”

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.