March 12, 2024

Photo credit: ProteinDistillery

By Lynda Kiernan-Stone, Global AgInvesting Media

Berlin-based impact food tech venture fund Green Generation Fund has led a Seed round exceeding €15 million (US$16.39 million) for ProteinDistillery, a food tech company looking to redefine protein ingredients by leveraging the powers of nature and cutting-edge technology. 

Joining Green Generation Fund was the Startup Family Office, which is closely tied to the German Mittelstand in Southern Germany, rounding out the funding that was complemented by industry-aligned Business Angels, including Wendelin Wiedeking, experts in industrial and process engineering, and additional financial experts.

Other key funding was secured via agreements through Sparkasse Esslingen-Nürtingen and support from the German government. 

“Our investment underlines Green Generation Fund’s strategy to back founders turning university research into commercial solutions,” said Peter Dorfner, principal and advisory board member, Green Generation Fund. “The team around Christoph, Marco, Michael, and Tomas proved their ability to bring lab innovation to a scale relevant for top-tier food industry clients.” 

Consumer awareness regarding health and wellness has been on the rise, leading to growing demand for clean labels and natural ingredient profiles. Investing in food ingredients companies allows investors to align their portfolios with this market trend, as ingredient companies are often at the forefront of developing and supplying natural, organic, and sustainable ingredients.

At the core of ProteinDistillery’s platform is Prew:tien – a plant-based, clean-label ingredient made through the process of biomass fermentation of upcycled brewer’s yeast.

Offering superior functional and nutritional properties, and with the ability to eliminate additives and animal-based ingredients from the ingredient profiles of a wide range of food products, Prew:tein has the potential to disrupt the market for various functional ingredients including binders, emulsifiers, and taste enhancers in meat alternatives, dairy alternatives, egg replacements, and baked goods. 

Investments of this kind – in sustainable human food ingredients companies – offers the opportunity to tap into a diverse range of sub-sectors within the food industry, providing diversification that can help mitigate risks and provide exposure to multiple segments of the value chain. 

“Transforming waste into value is a crucial strategy for breweries aiming to optimize their resources and unlock new revenue opportunities, that is why we are fully supporting ProteinDistillery’s project,” noted Dr. Mark Schneeberger, senior director product development, design & research, GEA’s brewery division.

ProteinDistillery explained that this funding will be the catalyst for pushing the boundaries of food innovation, revolutionizing how we approach food, and executing the company’s market entry strategy. 

When strategically deployed, this capital will support the company’s growth, the establishment of critical partnerships in the food industry, and the launch of Europe’s first protein-competence center in Heilbronn, in Southern Germany. 

“Looking ahead, we aim to set up an industrial-scale production facility with the capacity to produce several thousand tons of protein each year,” said Marco Ries, co-founder and managing director, ProteinDistillery.

“Achieving this goal requires a carefully crafted financing strategy. Considering our strong track record and deep relationships with influential industry leaders, I am very confident in ProteinDistillery’s potential to significantly boost Germany’s standing in the biotechnology sector.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

*The content put forth by Global AgInvesting News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. Global AgInvesting and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.