- MycoWorks, the mycelium leather company, is the industry leader with top quality products
- Market value and Sustainability competitiveness are notable... Corresponding to the direction of SK group.
- “Global seeding investments on eco-friendly materials companies will be made to identify future growth business… SK networks will seek new growth engines to increase corporate value”

SK networks has made a sudden move to join an investment project for a global eco-friendly materials company in pursuit of reinforcing sustainability management foundation and increasing ESG execution, while at the same time seeking to set the eco-friendly materials business as one of the company’s new growth model.

SK networks (President: Sang Kyu Park) announced on January 14 that it has decided to invest 20 million USD in the Series C funding round of MycoWorks (located in the Silicon Valley, U.S.), the eco-friendly alternative leather company, aimed to raise 126 million USD for technology development and market expansion. 20 million USD is the second greatest amount in this funding round following the lead investor and the largest strategic investment other than the fund.

In addition to the investment agreement, SK networks and MycoWorks have also concluded a contract in relation to their future collaboration for business expansion such as extending MycoWorks production facilities, building a sales network, developing new materials in addition to leather, etc.

MycoWorks is a leader in the eco-friendly leather market with a mushroom mycelium leather manufacturing technology. Mycelium leather is an eco-friendly product which innovatively reduces environment contamination and carbon emission that were previously observed in the process of animal breeding for leather production. According to UNIDO, mycelium leather emits over 90% less carbon and is highly efficient in saving water usage compared to animal leather. In addition, mycelium leather is receiving a lot of attention among other existing leather alternatives for its various advantages in terms of quality and manufacturing lead time. At the moment, only two companies in the world including MycoWorks have mycelium leather technology in the commercialization phase. MycoWorks, in particular, has patented its leather quality excellence and major manufacturing processes to gain a competitive edge against its competitors. MycoWorks is now broadening its scope of supply focused on industry leading brands.

SK networks has been collecting information regarding the relevant field continuously such as participating in US bio startup funding, and has taken particular note of sustainability and entrepreneurial competitiveness exhibited by MycoWorks. The decision on this investment was made following an intensive industry analysis and site inspection with SK group. This SK networks investment is interpreted to be aligned with the four key business areas announced last year by SK group: advanced materials, bio, green and digital.

Ho-jeong Lee, Executive Vice President of SK Networks said, “We made an approach from a viewpoint of life_ consumer goods based on our previous business experience and capability in the fashion industry. This investment was determined taking into account of the alternative leather market value and sustainability.”

This funding project participation will be the starting point for SK networks in its plan to continue to identify investment opportunities in the eco-friendly materials field, develop them into growth engines and reinforce its network with global technology leaders. The company also plans to seek growth engines associated with future technology and customer trend to build relevant partnerships. In addition, further focus will be made on global seeding investment areas that are in line with future strategic orientation of SK networks, such as eco-friendly materials, for enhanced new growth engine development. 

[Image] SK networks decided to invest 20 million USD in the Series C funding round of MycoWorks (located in the Silicon Valley, U.S.), the eco-friendly alternative leather company. Executive Vice President of SK Networks, Ho-jeong Lee (on the left) is celebrating the investment with Matthew L. Scullin, MycoWorks President via a video call.