March 7, 2024

By Lynda Kiernan-Stone, Global AgInvesting

As the company evolves from the R&D stage to market entry, Swiss food tech startup Cultivated Bioscience announced it has closed on $5 million in Seed funding to boost the development of its yeast-derived cream in collaboration with the food industry, and to position the company for a U.S. market launch in 2025. 

The company’s noted progress since it raised $1.5 million in Pre-Seed capital in September 2022 attracted the attention of leading strategic investors including Navus Ventures, a Dutch venture capital firm focused on sustainable food and energy systems, who led the round.

The dairy segment accounts for 4 percent of global greenhouse gas emissions, while at the same time, the global dairy cream market, which was valued at 16.22 billion in 2023, is expected to grow at a CAGR of 3.3 percent to reach a value of 19.74 billion by 2029. 

And while the dairy-free sector has made headway driven by innovation and growth, the products, which mix plant-based proteins and vegetable oils, additives, emulsifiers, and texturizers, fall short in terms of consumer satisfaction, or meeting expectations of product experience, health, or sustainability due to the inclusion of additives and exotic oils. 

Founded in Zurich in 2021, Cultivated Bioscience explained that it offers a sustainable and healthy alternative in its yeast-derived cream – a critical ingredient for mimicking the creaminess, functionality, and color of traditional dairy cream. And when used as an ingredient in food production, improves the texture and stability of dairy-free products and replaces additives while not affecting taste. 

Much like dairy cream, Cultivated Bioscience’s yeast cream is a natural emulsion. The production process involves yeast biomass fermentation – a method that is distinct from precision fermentation as it is non-GMO, cheaper, and more easily scaled.

The final product contains fats, proteins, and fiber – all from the yeast – and features a microstructure of yeast lipid droplets that resemble milk fat droplets. However, it is not meant to replicate dairy cream on a molecular level, but rather achieve functionality and sensory parity. 

It will then be supplied to the food and gastronomy industries for integration into finalized consumer products. At this point, the company has already validated its yeast cream in products such as coffee creamers, milk, and ice creams, while its clients explore further applications.

Looking to the future, Cultivated Bioscience noted that its team is focused on scaling up production and overseeing industry collaborations as its plans include expanding into the U.S. market in 2025, and then the European market in 2026, pending regulatory approval for consumption. 

“This funding validates our innovative approach and enables us to introduce our revolutionary yeast cream to the market,” said Tomas Turner, CEO, Cultivated Bioscience. “We aim to make alternative dairy products appealing to traditional dairy consumers, not just to reduce CO2 emissions from dairy production, but also to tap into a multi-billion dollar market opportunity.”

~ 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.

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