Darlington’s Myco Foods serves up funding success with £250k boost
Food manufacturer Myco Foods Ltd has landed six-figure funding from the Northern Powerhouse Investment Fund.
The Darlington-based company used the £250k, secured through NPIF – FW Capital Debt Finance, to strengthen its sales team and boost its marketing strategy.
Trading as Hooba Foods, the business produces a sustainable mushroom-based meat for a range of meat-free products, including sausages, sausage rolls, burgers, meatballs and mince.
NPIF – FW Capital Debt Finance is run by fund management firm FW Capital.
Keith Charlton, investment executive at FW Capital, said of the transaction: “Myco is an exciting company with a high brand value and high growth potential.
“The non-meat food sector in which the company operates is large and growing due to a significant move towards healthy and sustainable, environmentally friendly food.”
He continued: “This is reflected in Britain becoming a nation of ‘flexitarians’, actively choosing to eat less meat to stay healthier, with a reduction of meat in diet being linked to reduced risk of diabetes, heart disease and cancer.
“Myco has a strong market proposition, customer feedback has been great and there is a strong and ambitious management team with a clear vision for growth and development in place. Our investment will be instrumental in accelerating the company’s expansion in this growing marketplace.”
Myco Foods was co-founded in June 2016 by Mike Botha, John Shepherd and Jay Croslegh.
Jay commented: “The first tranche of funding has allowed us to create new jobs, doubling our workforce, and expand our sales team to drive coverage nationally in the foodservice sector, developing long-term relationships and supply into the NHS, universities and contract caterers.
“Keith Charlton and the team at FW Capital worked extremely closely with us for quite some time to understand the company, the products and its funding needs.”
He added: “Investment into marketing has seen an increase of 1300% in sales over the last month from an already growing base.”
A team from accountancy and business advisory firm UNW, led by corporate finance partner John Healey, advised Myco on the deal.
UNW corporate finance manager Michael McCulloch said: “The success of Hooba should serve as inspiration for those exploring their options and demonstrates the flexibility funders have within NPIF to stimulate growth.
“The fund has already had a major impact on many businesses in the North looking to grow and we hope it will help facilitate more growth in the region.”