Fungal Future: Biotech Firm Roots for Reforestation with $5.5M Investment

LONDON, UK – November 19, 2025

Rhizocore Technologies, a UK-based biotech firm specializing in fungal technology for forestry, has secured $5.5 million (£4.5 million) in funding to scale its operations and expand into the North American market. The investment, led by The First Thirty with participation from Scottish Enterprise, Grosvenor Estate, and other investors, signals growing confidence in ‘living technologies’ and sustainable forestry practices. The firm’s proprietary technology leverages the power of mycorrhizal fungi to improve tree survival rates and growth, addressing a critical need as global reforestation efforts gain momentum.

Reimagining Reforestation with Fungal Partnerships

Rhizocore’s flagship product, RhizoPellets™, pairs young trees with specifically selected ectomycorrhizal fungi, enhancing their ability to absorb nutrients and water. This symbiotic relationship is particularly crucial in challenging environments where soil quality is poor or resources are limited. “The potential to improve tree establishment, especially in degraded landscapes, is significant,” explains one forestry expert familiar with the technology. “Traditional reforestation methods often rely heavily on fertilizers and intensive site preparation. This approach offers a more natural, sustainable alternative.” The company’s roots lie in academic research, spun out of the University of Edinburgh’s Roslin Institute and the Deep Science Venture FAST programme. Unlike broad-spectrum fungal inoculants, Rhizocore focuses on locally adapted strains, maximizing compatibility and effectiveness. Initial trials in the UK have demonstrated a 25% improvement in tree survival rates – a jump from 78% to 97% – and up to a 13x increase in growth rates for certain species like Downy Birch.

Investing in Soil Health and ‘Living Technologies’

The funding round underscores a broader trend towards investing in soil health and ‘living technologies’ – solutions that harness biological processes to address environmental challenges. “Investors are increasingly recognizing that healthy soils are fundamental to both environmental sustainability and economic prosperity,” states a venture capital analyst specializing in agtech. “Companies like Rhizocore, which are developing innovative solutions to improve soil health and enhance plant productivity, are particularly attractive.” The First Thirty’s investment in Rhizocore aligns with its focus on backing companies with the potential to generate both financial returns and positive social and environmental impact. The firm sees a significant market opportunity in North America, where over 1.4 billion trees are planted annually, driven by wildfire recovery, timber production, and conservation initiatives. The scale of reforestation demand presents a considerable opportunity for Rhizocore’s technology. While the U.S. Forest Service has ramped up reforestation efforts with over $100 million in funding in recent years, improving planting success is vital for maximizing the impact of these investments. “The need to restore degraded landscapes is immense, and innovative technologies like this can play a critical role in accelerating those efforts,” states one conservationist involved in large-scale reforestation projects.

Scaling Up and Navigating the North American Market

The new funding will be used to expand Rhizocore’s Scottish production facility, grow its multi-year order book in Europe, and scale operations into North America. Existing customers have already secured all planned production capacity for 2025/26, demonstrating strong demand for the technology. The company’s strategy for entering the North American market involves partnering with forestry companies, conservation organizations, and government agencies. One key challenge will be adapting its fungal strains to different soil types and climate conditions across the continent. “The diversity of ecosystems in North America presents both an opportunity and a challenge,” explains a forestry consultant specializing in mycorrhizal applications. “Ensuring that the fungal strains are well-suited to the local environment is crucial for maximizing their effectiveness.” Competition in the mycorrhizal inoculant market is intensifying, with several companies offering similar products. However, Rhizocore differentiates itself through its focus on locally adapted strains, its commitment to sustainable forestry practices, and its rigorous scientific approach. “There's a lot of hype around mycorrhizal fungi, but Rhizocore’s approach is grounded in solid research and a deep understanding of the complex interactions between plants and fungi,” states an industry analyst. While the precise regulatory landscape surrounding mycorrhizal inoculants can vary by state and region, the products generally fall under agricultural and environmental guidelines, and are subject to increasingly stringent standards.

Mycorrhizal fungi are fundamental for carbon sequestration, with estimates suggesting that around 36% of global fossil fuel emissions are transferred from plants to fungi each year. Rhizocore's technology has a clear role to play in achieving critical climate goals, and its work supports long-term environmental resilience.