Formo uses proteins from koji, a umami-flavored fungus found in fermented foods including soy sauce and miso. The Berlin-based company has raised $61 million in a Series B round. FoodLabs, EQT Ventures and Lowercarbon Capital reupped their investments. They were joined in the round by new investors including The Nature Conservancy and European retailer REWE Group.
“Few European companies are raising such large rounds within climate tech,” said EQT Ventures’ Sandra Malmber. “A key success factor was proving commercial traction, which is a rarity for this type of company at this point in its lifetime.”
Formo will use its funding to increase 10-fold its current production of 100 tons per month of fermented Koji protein and plant protein-based cheese. Formo is also developing precision-fermented egg alternatives.
Cheese alchemy
Formo mixes non-GMO Koji protein, similar to the proteins in cow’s milk, with plant-based fats and water to create a dairy replacement. The process, which mimics traditional cheese making, creates a product that resembles the texture and flavor of dairy cheese. Formo, launched in 2019, says koji is “a true game-changer in the world of animal-free cheese [that] outshines typical plant proteins.”
The fundraising coincides with Formo launching its cheese varieties in more than 2,000 retail stores in Austria and Germany.
Food innovation
Finland’s animal-free egg protein producer Onego Bio landed $15.2 million in July. Swiss company Cultivated Biosciences raised $5 million for its yeast fermentation tech. Earlier this year, US-based Perfect Day raised $90 million, and Meatilanded $100 million.
Innovative foods, mainly alternative proteins, were the third-most funded agrifood tech category last year, according to AgFunder. Alternative proteins are projected to reach full parity in taste, texture and price with conventional animal proteins by 2035, says BCG.
