by Ishpreet Khanuja
“It might sound like one of the startup world clichés, but I think you need to be passionate about the problem, not just your solution,” says Stephanie Lipp, CEO and Co-Founder of MycoFutures. But if any startup founder is allowed to use that cliché, it has to be her. From growing gourmet mushrooms in rural Newfoundland to launching their first product with SRTX and a $100,000 purchase order, the MycoFutures journey is a testament to what companies founded with virtuous missions and consciously designed products can achieve. In a recent episode of Tech Uncensored, we delve into the world of cleantech with founders Stephanie Lipp and Leo Gillis and the lessons we can learn from a company that is trying to walk the talk.
Early Signs of Entrepreneurship
While mushroom farming was not an industry either of them sought out in their early careers, both Lipp and Gillis had possessed a passion for nature, entrepreneurship and sustainable solutions since high school. “There were these inklings of what was to come, but there wasn’t any crystal ball that would have put me where I am today,” shares Lipp. “I had worked as a photographer’s assistant after high school, gaining a broad understanding of the creative field. After that, I expanded into graphic design and digital marketing, starting some small businesses along the way like vintage stores, event styling, etc. I had just followed my love for fashion, photography, and writing wherever it led me. I never expected it to end up shaping my career in this way.”
As is often the case with following the call of curiosity, these were the very makings of the skillset Lipp would eventually use to grow her business. She reflects, “I worked in non-profit housing—which was supposed to be a temporary job—but it ended up becoming my foundation in business. I learned to review budgets, financial statements, and audits and even presented to a board. Unexpectedly, this experience introduced me to core business operations. It also deepened my interest in impactful work, as non-profit housing is closely linked to combating socio-economic injustice.”
It is also where she met Gillis, and two years into their relationship, the couple found themselves moving to Newfoundland, with the hope of affordable homes and a growing business community. Gillis, who had dabbled in growing and cooking gourmet mushrooms in the past, soon noticed the extent of food insecurity in Newfoundland. “Newfoundland has a strong food culture, but it’s heavily reliant on imported food,” notes Lipp. “Our goal was to bridge that gap by blending food ideas with a renewed interest in local food culture and promoting self-sufficiency and nutrition. We wanted to bring people together through food, all while growing something that could be produced year-round. This way, no matter the weather—whether there is a hurricane or rain or any of the elements you would find on our peninsula—we can provide at least one reliable food source throughout the year, which is hard to come by in the area.”
Much like penicillin, the story of MycoFutures begins with an accidental discovery. The founders were fascinated by the use cases other merchants had identified for mycelium, their interest in the field had never grown beyond academic curiosity. That is, until the lawn mower incident.
“We were composting some of our mushroom blocks outside the house. I was trying to break them apart with a shovel and I couldn’t get them to separate,” recalls Gillis. “One day, while mowing the lawn, I hit the block with the mower in frustration. It never started again. That’s when we realized we had a strong material with excellent mechanical properties.” This was during the pandemic, when they had already been contemplating a pivot to materials from an overly saturated and hard-to-scale nutraceutical market.
In three months, Gillis had created their first prototype—a small, flexible material made entirely from fungi roots. This won them their first pitch competition in November 2020, bringing in both cash and confidence. An abundant, regenerative alternative material, mycelium resembles cow leather closer than other existing solutions in the space due to the naturally intertwined form in which fungi grow. When touched, their prototype bag evokes the memory of real leather, providing a tangible experience without the need for plastic coatings or backing.
The durability is matched in sustainability. “We take in waste products like sawdust and agricultural waste,” notes Lipp. “We can grow as much of it as needed based on the food source, which isn’t rare. It is a part of the waste stream of agriculture, so we can see how this fits into ideas about circular economy. If you want a sheet that is six feet long, we just need a six-foot container and enough food source. The mycelium doesn’t differentiate between a small box or a large bin, which allows us to customize seamless sheets for their customers, offering the benefits of cowhide without the irregular shape and waste.”
Taking the Leap
The lawn mower incident was not an isolated occurrence. The MycoFutures duo has had a remarkable ability to seize opportunities and make things happen throughout their journey. When asked about the exciting launch of their first product the Myco™ Travel Pouch, Lipp shared the serendipitous coffee chat with SRTX CEO Katherine Homuth that led to this partnership. She recalls, “We were invited by the University of Toronto to participate in a mini market of University of Toronto startups, which included a fireside chat with Katherine. I had heard her speak at an event before, but we hadn’t had a chance to connect. I reached out for an introduction, and despite her packed schedule, she agreed to meet me.”
“After discussing what we were doing and watching our presentation, I thought she would just give us tips on fundraising or how to sell novel material,” she adds. Instead, we left the meeting with a $100,000 purchase order, the launch of our physical product, and the incredible opportunity to be the first company incubated in the SRTX Origins incubator. This gave us access to space in their Montreal facility and the expertise of the SRTX team, propelling us into real production. We now have custom trays and racks being made overseas to grow our first 200 square meters of material, a major leap from the smaller sheets we had been producing.”
Lipp recounts the many milestones they have reached in the last few years, stating “Each experience, no matter how small, led us here. Being in accelerators has been a huge help. Each one was a level-up for us, like Creative Destruction Lab, which kept us connected to the Altitude community and provided invaluable support in investor readiness. One of our proudest moments was seeing our bag of materials displayed at the Museum of Science and Technology in Vienna, alongside some of Europe’s most innovative historical inventions. There have been so many moments that have pushed us forward, providing traction and opening doors to incredible people and opportunities. In the startup world, there’s never just one turning point; it is about collecting the pebbles along the way and carrying them forward, using them when the time is right.”
Disruption is never comfortable
It can be easy for founders to assume that entering cleantech would mean automatic support. But cleantech isn’t a catch-all, and dollars and cents are still the driving force behind investment and adoption. The MycoFutures founders admit they did not expect that materials-based cleantech would not be a major focus in Canada. While the country has room for incredible innovation, finding specific support or funding for a specific type of cleantech can be tough.
“We quickly realized that wanting to do something good for the environment did not automatically pave an easy path ahead,” Lipp shares. “In the beginning, we saw cleantech as something universally great. We still believe that, but we quickly realized how diverse it is—ranging from energy and carbon capture to materials, each with its own challenges. We were surprised to find how heavily funding and investment were focused on digital problems over physical ones. Talking to other founders in the cleantech and impact startup space, we found many had similar experiences. Building a business, especially something disruptive, is never easy, but we didn’t expect it to be this hard.”
The changing political environment will certainly call for resilience in founders. Lipp advises, “We must stay agile, remain independent, not relying on government ties, and hoping decision-makers will support the adoption of next-gen materials with proper incentives. Industries need frameworks around transparency and data to combat greenwashing and better infrastructure for recycling and upcycling is crucial. We support a circular economy and reducing plastic waste. As the saying goes, ‘The best time to plant a tree was 30 years ago. The second-best time is today.’ We’re at a critical climate tipping point, and though change is overdue, cooperation and collective action are key to reducing consumption and improving life on Earth. Our solution is part of a larger, collaborative effort to reverse climate change.”
She urges young entrepreneurs to consider the impact of their solutions and if they really address the challenges we face as a society, adding— “We don’t need more stuff on the planet, so focus on creating products with a strong purpose and values. It’s not just about good end-of-life. It is also about how we treat our employees and the communities impacted by our products. While it may sound idealistic, this is the only way we can justify creating something new in an already saturated world.”
If you’d like to support MycoFutures you can pre-order their Mushroom Leather Myco™ Travel Pouch here.
Listen to the full conversation between Hessie Jones, Stephanie Lipp and Leo Gillis here to learn more about MycoFutures and the unconventional path that led them to cultivate an innovative solution.
Check out Tech Uncensored and all our episodes on Spotify.
