Chinova Bioworks raises $6m in DSM, Rhapsody-led Series A
Summary
Prior to this, the startup had secured its pre-seed funding from the New Brunswick Innovation Foundation, SOSV, and the First Angel Network.The Series A capital will go towards growing Chinovas team and enhancing production capacity at its facility in Prince Edward Island, which is set to formally open in the coming months. Research suggests that some chemical-based preservatives such as certain nitrates, benzoates, and parabens may cause hypersensitivity, allergy, asthma, neurological damage, and cancer.According to Natasha Dhayagude, co-founder and CEO of Chinova Bioworks, there is demand from consumers for natural ingredients in their food.The [Covid-19] pandemic has accelerated the trend for food safety and health-focused products, she said, in a statement by the company.At the same time, rising urbanization and busy lifestyles are leading to increased demand for ready-to-eat foods with extended shelf lives. Taken together, these trends point to rising demand for safer, natural preservatives.The food preservation industry was valued at $2.6 billion as of 2021, according to Future Market Insights. The stems would otherwise typically be discarded, since they are the tougher part of the mushroom and less appealing to consumers.Chinova says its product, Chiber, can be used in the preservation of dairy, plant-based meat, baked goods, sauces, and spreads, as well as beverages. It was easy to switch to using Chiber as a natural preservative to garner the clean label benefits.Chinova has been crushing it for more than five years, added Bernard Lupien, general partner for Rhapsody Venture Partners.Its been amazing to see how quickly Chinova has been able to add customers, making investing a no-brainer.