EDINBURGH-based scientists who produce fungi that could provide a big boost to the global reforestation drive have won multi-million pound backing from international investors.

The Rhizocore venture founded by Toby Parkes and David Satori just two years ago has secured £3.5m backing from private equity investors who see big potential in the pellets it has developed to promote tree growth.

The mycorrhizal fungus contained in the pellets encourages the flow of nutrients and minerals between the soil and the root systems of trees.

Rhizocore reckons the fungus can help tackle the high mortality rates that impede efforts to promote the growth of forests in support of the net zero drive. Forests can absorb carbon that would otherwise be released into the atmosphere.

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Rhizocore says high numbers of newly-planted trees die due to a lack of soil connectivity. The company says is pellets also vastly improve the drought tolerance of trees. It can increase the growth rate of young trees by 20 per cent.

The Herald: Rhizocore says its pellets help saplings flourishRhizocore says its pellets help saplings flourish (Image: Rhizocore)

Mr Parkes said the funding round provided validation of the company’s product’s potential to restore ecosystems around the world.

He added: “With the support from our investors, we will be able to sequester gigatons of carbon to protect the future of the Earth for generations to come.”

The company said it will use the funding to scale up its operations, with the aim of supporting the planting up to 5 million trees with accompanying fungal pellets in 2025 alone.

Rhizocore plans to hire another five team members over the next 12 months. It has 10 currently.

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The funding round was led by ReGen Ventures, Collaborative Fund and Grok Ventures. 

ReGen Venture founder Dan Fitzgerald said Rhizocore's "networks of fungal diversity” could be deployed across the world.

Mr Parkes obtained a PhD in biochemistry from the University of Bath and worked at Royal Botanic Gardens Kew. Mr Satori got a masters in plant and fungal taxonomy from Queen Mary University of London and Royal Botanic Gardens Kew.

The founders started Rhizocore under the FAST programme run by the University of Edinburgh. The university has invested in Rhizocore through its Old College Capital arm.

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Rhizocore generated its first revenues this year. The company aims to grow annual sales to more than £1m in the next two years.

Its customers include reforestation projects and commercial forestry businesses.