Darlington-based company Myco Foods Ltd – which trades under the name Hooba Foods – produces a sustainable mushroom-based meat alternative used in its range of meat-free sausages, sausage rolls, mince, burgers and meatballs.

Its products are aimed at meat-eaters who want to reduce or cut out their meat consumption, with the company striving to help reduce global meat production and improve public health.

Myco’s application was approved in August, allowing it to strengthen its sales team and implement its marketing strategy.

“The non-meat food sector in which the company operates is large and growing due to a significant move towards healthy and sustainable, environmentally friendly food,” said Keith Charlton, investment executive at FW Capital.

“This is reflected in Britain becoming a nation of ‘flexitarians’ – actively choosing to eat less meat to stay healthier – with a reduction of meat in diet being linked to reduced risk of diabetes, heart disease and cancer.

•   NPIF celebrates its 100th investment
•   Smart toy robot inventor secures £500,000 investment
•   Are SMEs aware of the Northern Powerhouse and Midlands Engine?

“Our investment will be instrumental in accelerating the company’s expansion in this growing marketplace.”

Jay Croslegh, director of Myco Foods, explained that the first tranche of funding had allowed it to double its workforce and also expand its sales team to drive coverage nationally in the food service sector.

“Keith Charlton and the team at FW Capital worked extremely closely with us for quite some time to understand the company, the products and its funding needs.

“Investment into marketing has seen an increase of 1,300% in sales over the last month from an already growing base.”

Independent chartered accountancy and business advisory firm UNW helped advise Myco Foods on its finance raise.

“UNW assisted in the development of the proposal, advising and testing the projections so that KPIs would be met and ensuring that subsequent tranches are made available as growth develops further,” Jay added.

Michael McCulloch, corporate finance manager at UNW, said: “The success of Hooba should serve as inspiration for those exploring their options and demonstrates the flexibility funders have within NPIF to stimulate growth.

“The fund has already had a major impact on many businesses in the North looking to grow and we hope it will help facilitate more growth in the region.”

Pictured above: left to right – Keith Charlton of FW Capital, Jay Croslegh of Myco Foods, Michael McCulloch of UNW LLP, Lindsey McMenamin of FW Cap