#StartupsEverywhere Profile: Joanne Rodriguez, Founder & CEO, Mycocycle
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Revolutionizing Waste Management with Mushrooms
Mycocycle is a Chicago-based biotechnology company that harnesses the mycelial properties of fungi to detoxify and transform construction waste into new raw materials. With over 30 years of experience in the construction industry, Founder and CEO Joanne Rodriguez seeks to transform the treatment of waste through regenerative and sustainable approaches. We spoke to her about her experiences launching a company in the Midwest, navigating the patent system, and her goals for Mycocycle for the future.
Tell us about your background. What led you to create Mycocycle?
I’ve been in the construction products industry for nearly 30 years, and have served on an EPA panel that set the first environmentally-preferred purchasing for clean and green products. My passion for finding sustainable solutions to waste in the construction sector drove me to create Mycocycle, which aims to improve recycling rates for construction and demolition debris. I started the company in 2018 and have since gained the support of the Department of Energy through the Argonne National Lab. We currently have a team of 10 and have been growing and scaling ever since.
What does Mycocycle do?
At Mycocycle, we develop innovative bio-based solutions to address waste in the construction industry, targeting materials like gypsum, drywall, asphalt roofing, wood, insulation products, and more. Using lab-cultivated fungi, we detoxify and transform these waste products into new bio-based raw materials. While our long-term vision is to become a raw materials supplier, we currently offer a low-carbon circular and bio-based solution for manufacturers. By applying the science of mycology to industrial waste streams, we can create valuable new resources from materials that were previously considered waste.
Can you tell us about building a startup in the Midwest? How was the fundraising process?
In terms of my network and a supportive ecosystem, I found Chicago to be phenomenal. When I had the idea of Mycocycle, I sought out guidance and mentorship from startup incubators and started my journey at 1871. I then joined P33, the Penny Pritzker foundation, where I was in the first cohort of their TechRise initiative for underrepresented founders. I’ve had these opportunities and they’ve been great at representing the needs of and giving a voice to women and other underrepresented founders.
However, I must admit that fundraising, especially for female founders, can be challenging in the Midwest. Money is tighter, and investors expect you to have traction, which you can’t have without money. Although I successfully closed my seed round, most of my investors are from outside the Midwest. While we have received great support overall, finding local investors in the region has been challenging.
Can you tell us about your experience pursuing grants? What should policymakers know about the process and its impact on startups?
Obtaining non-dilutive grant money has been a part of our fundraising strategy, but it does come with its share of challenges. The process can be time-consuming, diverting time and resources away from sales and growth. Companies like mine generally have to hire somebody to navigate that landscape, which is not feasible for many startups. Unfortunately, I’ve seen many promising companies facing closure because of insufficient funding. It’s not a lack of ideas that hinders progress, but rather the struggle to secure enough funding to scale effectively. Policymakers should take into account the hurdles faced by startups in obtaining grants and strive to make the process more streamlined and accessible.
What has been your experience navigating the patent system?
Navigating the patent system has been challenging. Finding the right intellectual property attorney proved to be a hurdle, and I went through several attorneys before finding the right fit. As a founder, you rely on your attorney to grasp the intricacies of your work and communicate them effectively, but unfortunately, that’s not always the case. It would have been helpful to have more guidance and support in understanding patentability and other aspects of intellectual property. I believe there should be more transparency throughout the process, and the system should be designed to make it easier for founders like myself to navigate.
What are your goals for Mycocycle moving forward?
Our mission is nothing short of revolutionizing waste management on a global scale. Currently, less than 10 percent of waste is reused. We want to flip that narrative, treating waste as feedstocks and creating value out of that remaining 90 percent. Over the next five years, our goal is to treat more than 1.5 million tons of waste, partnering with nature to develop sustainable solutions and create value where none existed before.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email advocacy@engine.is.
