January 15, 2025

By Gerelyn Terzo, Global AgInvesting Media

Formo, a Berlin, Germany-based food biotech company, has clinched EUR 35 million (US$36 million) in a quasi-equity venture debt loan from the European Investment Bank (EIB). The funding, which was provided as part of the InvestEU program, will help the company to scale its fermentation processes for alternatives to dairy and egg-based food products while concurrently seeking the regulatory green light to expand in the U.S. and European markets.

The EU’s InvestEU program has earmarked €372 billion (US$382 billion) of additional investment to be directed into emerging technologies by 2027 in alignment with the goal to promote research, development and innovation.

Formo’s latest capital injection comes on the heels of its recent $61 million Series B round that it closed in September 2024. With the funds, Formo introduced its animal-free koji cheese to European grocery markets including METRO and REWE in Germany and Austria. Since inception in 2019, Formo has raised a total of over EUR 135 million (US$138.9 million) as the company capitalizes on demand for fermentation technology.

Formo will direct the proceeds of the latest funding toward scaling up its koji protein-based cheese production, as well as creating new plant-based products using its micro-fermentation innovation. Formo relies on a biochemical process called micro-fermentation using its koji mushrooms to create cheese alternatives. In this process, the company use microorganisms like koji to create koji-proteins. These koji-proteins are then mixed with plant-based fats and water to create a milk replacer, which is then used to make cheese products harnessing historical cheese-making techniques from thousands of years ago.

The company is also seeking U.S. and EU regulatory approval for its precision-fermented casein protein, which is found in milk and gives cheese its texture. The company is in the midst of U.S. regulatory processes for its second-generation precision fermentation products and reportedly expects to achieve a Generally Recognized as Safe (GRAS) determination by year-end 2025.

Formo CEO Raffael Wohlgensinger reportedly views the company’s technology as part of the answer to the world’s challenges around food security. During the pandemic, he told Vegconomist, “[We] see our technology as a solution to many supply-chain risks around food security. For instance, dairy products made with precision fermentation allow for more decentralized production. This means that we can minimize supply-chain risks, especially for countries which are very dependent on imports.”

Formo’s Series B fundraising round, which it closed in September 2024, attracted both returning and new backers, including Foodlabs, EQT Ventures, Lowercarbon Capital, Happiness Capital, Elevat3 Capital, Grazia Capital, Sazaby League, Seven Ventures, Woodline Partners, The Nature Conservancy and European retailer REWE Group.

Of the latest funding, EIB Vice-President Nicola Beer stated, “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. By working with Formo, the EIB is supporting innovative solutions for sustainable consumption while also backing a growth-stage European startup.”

Formo’s Wohlgensinger said, “We are very pleased that the EIB is confident of the strength and scalability of our innovation. We want to show that innovative European companies can move from smart ideas to scaling up and successfully marketing their technologies. We also know that 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.”

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