Berlin-based startup Formo has raised €35m (£29.6m) from the European Investment Bank to scale up fermentation for its animal-free cheese and egg products.
The company claims to have developed the world’s first alternative cheese product made using koji protein, a naturally occurring fungus typically used in Japanese cooking.
The €35m follows a $61m Series B funding round in September 2024 – the third-largest raise by an alternative protein startup last year – bringing Formo’s total financing to more than €135m.
Formo founder Raffael Wohlgensinger said the “fermentation processes will make a decisive contribution to the resilience of the European food system. This financing sends a strong signal across Europe and confirms our strategy”.
The additional funds will be used to scale up manufacturing of its koji protein cheeses and develop new products through its micro fermentation platform. It will also look to secure regulatory clearance for its precision-fermented casein in the US and the EU.
Founded in Berlin in 2019, Formo uses two similar technologies in its processes. The first is micro-fermentation, in which naturally occurring micro-organisms such as koji mushrooms are used to produce tasteless proteins without modifying the micro-organism itself.
Formo’s work in precision fermentation has also enabled it to develop bioidentical milk proteins, particularly caseins with good melting properties. Traditional fermentation is combined with the synthetic biotechnologies to produce caseins on an industrial scale.
Its micro-fermentation products are now sold in supermarkets in Germany and Austria, while other cheese alternatives (such as Greek feta and blue cheese) and an egg substitute for scrambled eggs are currently in the scaling process.
The loan from the European Investment Bank is part of an initiative aimed at investing over €370bn in new technologies by 2027.
“Developing and scaling up the industrial production of fermentation-based foods is a highly innovative approach to meeting the growing demand for protein-rich dairy and egg substitutes that are free from animal products,” said EIB vice-president Nicola Beer.
Other investors in Formo include London-listed Agronomics, which has invested €4.4m in the company, including its first round in December 2019. Its stake is now 4.5% on a fully diluted basis.
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