Natural Products Canada invests in mushroom-based preservative manufacturer

21 Aug 2018

Natural Products Canada has invested in Chinova Bioworks, a Canadian company whose mushroom-based natural preservative is said to have captured the interest of major food industry partners such as DSM Ventures, Rhapsody and AgFunder.

Natural Products Canada has invested in Chinova Bioworks, a Canadian company whose mushroom-based natural preservative is said to have captured the interest of major food industry partners such as DSM Ventures, Rhapsody and AgFunder.

“Chinova has discovered a unique solution to create a clean label, natural preservative that meets the demands of industry and consumers,” said Shelley King, CEO of Natural Products Canada, which fosters Canadian natural product companies through advice, introductions, and investment. “We are thrilled with the progress they’ve made since we started working with them 18 months ago, and we’re proud to participate in this investment round with DSM Ventures, AgFunder and Rhapsody.”

Chinova, based in Atlantic Canada, is focused on the development of natural preservatives using mushroom chitosan, a natural fibre whose antimicrobial properties are said to be effective against a broad spectrum of microorganisms.

“We are pleased to have NPC as a part of this seed round,” says CEO, Natasha Dhayagude. “The valuable business, technical and financial assistance we’ve received from them has been instrumental to our early success in the market.”

Chinova’s technology, coupled with its ambitious plans for growth, are said to have made them an ideal client for NPC’s full range of services, including business and technical advisory services, connections to industry resources, and access to capital.

“It’s been a pleasure to help Chinova navigate the ecosystem and grow their business to the point where it was able to attract such high calibre investors,” says Stephen Ball, Regional Director for Natural Products Canada. “Their scientific acumen, desire to grow, and ability to attract and retain strategic industry mentors puts them in good standing for future growth.”

NPC started its investment fund in 2017 to help Canadian natural product companies achieve their full commercialization potential. To date, it has made four investments and experienced one exit. Along with financial investment and business advice, NPC connects high-potential Canadian companies like Chinova to Canadian and international investors through personal introductions and strategic investor events and meetings.