M-Based Raises $700K Seed to Scale Mushroom Mycelium Biomaterial

M-Based Closes $700K Seed Round

Ankara-based biotechnology startup M-Based has raised $700,000 in seed funding. The round was led by ODTÜ70 Venture Capital Investment Fund (ODTÜ 70. Yıl Girişim Sermayesi Yatırım Fonu), with participation from Hatcher+ and Elemental Ventures.

What M-Based Does

M-Based develops alternative material technologies from mushroom mycelium. The company operates out of ODTÜ Teknokent, the technology development zone associated with Middle East Technical University in Ankara.

Its first product, Fomes, is a vegan leather-like biomaterial positioned as a sustainable alternative to both animal-based and petroleum-based leather. The initial target market is fashion and textiles, with planned applications in automotive and furniture.

Use of Funds

With this 2026 seed round, M-Based is moving Fomes into industrial-scale production and accelerating international commercialisation. The transition from development to industrial-scale output is a critical milestone for biomaterials companies, where production consistency and cost per unit often determine commercial viability.

Market Context

The alternative leather space has attracted growing attention as brands in fashion, automotive, and furniture seek materials that reduce reliance on animal agriculture and petrochemical feedstocks. Mycelium-based materials are one of several competing approaches, and the ability to reach industrial-scale production is a key differentiator among early-stage players.

M-Based's focus on fashion and textiles first — followed by automotive and furniture — reflects a staged commercialisation strategy, starting with markets where material adoption cycles may be faster before moving into more heavily regulated and specification-driven sectors.

Round Details

• Stage: Seed
• Amount: $700,000
• Date: October 1, 2026
• Lead investor: ODTÜ70 Venture Capital Investment Fund (ODTÜ 70. Yıl Girişim Sermayesi Yatırım Fonu)
• Participating investors: Hatcher+, Elemental Ventures

Acquisition Perspective

For strategic acquirers in materials science, textiles, automotive interiors, or sustainable consumer goods, M-Based offers an early-stage biomaterials platform with a defined first product and a clear path toward industrial-scale production. The involvement of ODTÜ70 Venture Capital Investment Fund ties the company to a university-affiliated investment ecosystem, which can provide access to technical talent and research infrastructure.

At seed stage, the primary diligence questions for potential acquirers will centre on production scalability, unit economics at industrial volumes, and the breadth of the intellectual property around the Fomes material. The stated expansion into automotive and furniture applications suggests a roadmap that could align with larger industrial partners seeking sustainable material alternatives.