Possible Ventures invests in Fable

Hunchy Queensland is a remote part of the Sunshine Coast that most of us have never heard of, and even fewer will likely see — but it just so happens to be where the world’s best producer of mushroom “meat” is based. Fable produces meat replacement products using mushrooms and has quickly become Australia’s version of Beyond Meat or Impossible Foods.

The company announced an AUD $6.5m seed round in August 2021 led by Australia’s largest VC fund, Blackbird Ventures. Other investors include AgFunder, Aera VC, Better Bite Ventures, Singapore-based produce importer Ban Choon Marketing, and Warren Hogarth - formerly a partner at Sequoia Capital. Now, six months later, Possible Ventures is joining that seed round after a meeting of minds between us and Fable’s founding team.

We believe the modern-day food system needs a radical overhaul to be sustainable and that there are multiple ways to improve life for animals, people and the planet. One approach is cell-based meat, which is why we began backing Meatable in 2019 and their aim to scale real meat production from the lab to consumers, without harming animals or the environment. Protein-based alternatives have also grown in popularity, best seen in the growing popularity of Silicon Valley unicorns Beyond Meat and Impossible Foods.

Unlike those market leaders, Fable’s food contains 62% shiitake mushroom, a shortlist of all-natural ingredients, and uses minimal processing.

The business already has significant traction, with national burger chain Grill’d (136 locations) and modern Mexican franchise Guzman y Gómez as the two largest customers. The products can also be bought at supermarkets including Woolworths, Coles and Harris Farm Markets. Fable made $4.7m revenue in 2021 and sees growth avenues both within Australia and internationally. Fable is currently pushing into the US market through partnerships with restaurants and meal kit companies, with products also available at restaurants in Singapore and the United Kingdom.

Food accounts for over a quarter (26%) of global greenhouse gas emissions¹, and therefore, lies at the heart of trying to tackle climate change. And as we take steps to reduce our carbon footprint, less meat is often a more effective measure than sustainable meat².

“Talking to my friends and family, a lot of people want to reduce their meat consumption for a mix of health, environmental and ethical reasons, but they find it challenging because they love the taste and texture of meat and giving it up is hard.” — Michael Fox (CEO & Co-Founder)

Fable’s founding team wanted to find a way to make it easier for people to transition to plant-based foods, and spoke to several chefs who suggested using mushrooms as a base ingredient.

Competitors in the space generally ferment mycelium, the root structure of fungi, instead of using the fruiting body of fungi - mushrooms.

Fable use shitake mushrooms and has develop a unique methodology that enables them to utilise the mushroom’s stem.

“Shitake mushrooms are very flavourful with their natural umami flavours, they are a slow-growing mushroom so they naturally have the fleshy fibres that give the meaty bite you typically get from animal proteins, and have the right chemical composition that when cooked allow us to taste flavours that are found in animal products.” — Michael Fox

Consumer sentiment continues to turn towards sustainable food solutions and healthful alternatives. As dominant consumer brands cater to that demand, they’re looking for high-volume, sustainable solutions. Fable is positioning to be the all-natural, low-impact protein alternative that enables this consumer shift.

We’ve known CEO & co-founder Michael Fox for the best part of a decade, having met when he was running his first startup, Shoes of Prey. Jim Fuller, a fine dining chef turned chemical engineer and mycologist, and Chris McLoghlin, an organic mushroom farmer, round out the formidable founding team. Together, they have just the right mix of quirky genius required to transform the protein landscape, and we’re proud to be on this ride with them.

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