Fungi can be single celled or very complex multicellular organisms. This is a mould type of fungus. Moulds are made up of very fine threads (hyphae). Hyphae grow at the tip and divide repeatedly along their length creating long and branching chains. Most fungi can reproduce through both sexual and asexual reproduction . Asexual reproduction occurs through the release of spores or through mycelial fragmentation, which is when the mycelium separates into multiple pieces that grow separately. We can also see certain spores in the image above.