- Berlin-based startup Formo has secured a €35 million ($36 million) venture debt loan from The European Investment Bank (EIB) to help scale its fermentation technologies, taking its total funding to €135 million ($139 million).
- The cash injection follows a $61 million series B round announced last fall.
- “By working with Formo, the EIB is supporting innovative solutions for sustainable consumption while also backing a growth-stage European startup,” said EIB VP Nicola Beer.
- Venture debt financing is a type of loan extended to startups or fast-growing companies that can provide more flexibility than other types of debt. It does not dilute existing shareholder equity, but typically comes with a higher interest rate and shorter repayment terms.
‘Koji has a neutral flavor and high functionality’
Formo (founded in 2019 as LegenDairy Foods) is best-known for its work to engineer microbes to express dairy proteins such as casein via precision fermentation. However, it is using different technology in its first range of cheeses, instead growing naturally occurring Aspergillus Oryzae (koji) as an ingredient via fermentation. It then adds plant-based fats and other ingredients to make cheese alternatives such as ‘Frischhain’ and ‘Camembritz.’
Formo is currently able to produce triple-digit tons of its cheese monthly and plans to triple its capacity in the coming year, head of global public affairs and general manager, APAC, Christian Poppe told AgFunderNews.
“Our process begins in steel tanks like in a typical brewery. Koji strains are fed a nutrient bath of sugars and micronutrients. The nutrient bath usually includes wheat flour or other carbohydrates. Then the koji strains consume the nutrients and produce koji protein. Finally we separate the biomass from the liquid. The koji protein is in the liquid, so we filter and dry it in spray dryers.”
He added: “Koji has a neutral flavor and high functionality, which means it’s perfect for creating cheese alternatives that closely match the texture and taste of traditional cheese.”
Cheeses containing casein proteins via precision fermentation on track to debut in 2025
That said, koji does “not currently offer the same stretchability and meltability performance that traditional casein or whey proteins deliver – or that bioidentical casein products made through precision fermentation will offer,” said Poppe, who said Formo remains on course to expand its portfolio to include hard cheeses featuring animal-free casein this year.
Formo is currently focused on launching its own consumer products containing the casein proteins, he explained. “At this point, we do not plan to supply these proteins as B2B ingredients, as our vision is to create a complete and compelling brand that consumers can directly engage with, as we believe the ingredients market will quickly become commoditized.”
‘Building our own facilities is not a priority’
As for the manufacturing setup, he said, “At this stage, building our own facilities is not a priority. While we don’t rule out investments in infrastructure in the future, we currently focus on partnerships that leverage the best of both worlds.”
On the regulatory front, he said Formo is actively working on securing self-GRAS status for its casein proteins. Given its history of food use in products such as soy sauce and miso paste, koji does “not require any special approval or regulation,” he claimed.
