Myceen: From forest fungi to carbon-negative construction 

Published on June 18, 2025
 

In a world racing toward decarbonization, where architecture, art, and climate solutions rarely meet, one Estonian startup dares to ask: Can mushrooms build the future? 

Founded in Tallinn, Myceen is not your average cleantech company. At its core lies mycelium the root-like structure of fungi — which Myceen transforms into high-performance, carbon-negative materials.
From designer lamps and acoustic panels to insulation-grade building blocks, Myceen’s products are grown, not manufactured. They are biodegradable, beautiful, and born from waste.
 

 

From Design Objects to Carbon-Negative Construction 

Myceen’s early creations were deceptively simple: sculptural plinths, organic lighting fixtures, and sound-absorbing wall tiles. But behind the art was deep science. The company combines agricultural and forestry waste with mycelium to create a growing medium, which — at just 25°C — produces dense, durable, and fire-resistant materials. 

These products are now shipped to over 15 countries, from Singapore to the United States. As interest grew, so did Myceen’s ambition: to build sustainable structures, not just objects. 

 

A Creative Breakthrough: Creative Business Cup 

In 2022, Myceen's turning point came at the Creative Business Cup (CBC):

  • They won Creative Business Cup Estonia 

  • Claimed the BRUNO Design Award, Estonia’s highest design honor 

  • And at the CBC Global Finals in Copenhagen, they placed in the Top 5 worldwide 

  • Most notably, they were named the event’s "Most Investable Startup" 

CBC provided more than trophies — it offered global exposure, mentorship through the Creative Business Academy, and access to an investor network that valued both creativity and climate action. 

 

Mycelium House? Yes, Really. 

In November 2024, Myceen launched its most daring project yet: the PAKK Pavilion in Tallinn, Estonia — an experimental micro-house insulated entirely with mycelium. Designed in collaboration with Pattern Building and sLender modular facades, this structure is one of the first in the world to compare mushroom-based insulation with traditional mineral wool. 

The results? Striking. 

  • Thermal insulation on par with standard materials 

  • 75% sound absorption for high frequencies 

  • Fully compostable, non-toxic and mold-resistant 

  • Net-negative carbon footprint 

 

Myceen Funding Journey

To bring its vision to life, Myceen secured €2 million in public grants from: 

  • Enterprise Estonia (EAS) 

  • EIT Climate-KIC 

  • Horizon Europe 

  • Beamline Accelerator 

  • The Estonian Ministry of Climate 

  • SoTecIn Factory (EU program) 

  • The German Ministry of Culture 

In 2024, the startup launched a seed round targeting €1–1.5 million to build a pilot factory, automate production, and begin industrial-scale delivery. Investors, including the Japanese impact fund Mistletoe, took notice. 

Their timing is impeccable. The EU aims to renovate 35 million buildings by 2030, and Myceen’s insulation is a certified contender in that race. 

 

From Northern Forests to the Global Stage 

Myceen has since showcased its work at: 

  • The Tallinn Architecture Biennale 

  • Urban Brilliance at H22 in Helsingborg 

  • Exhibitions in Milan, London, and Berlin 

And now, with backing from SoTecIn Factory and EU innovation programs, they’re preparing to go mainstream. 

 

 

It’s a vision that began with mushroomsand is now rooted in a global movement for change.