EIB Grants €35M Loan to Formo for Scaling Fermentation-Based Dairy and Egg Alternatives

The EIB loan follows Formo’s $61 million Series B funding round in September 2024, bringing its total financing to over €135 million.

The European Investment Bank (EIB) has announced a €35 million quasi-equity venture debt loan to Formo, a Berlin-based food tech startup, to advance its innovative fermentation processes for creating sustainable dairy and egg alternatives. This financing aims to scale up the industrial production of animal-free protein-rich foods, offering a sustainable solution to growing global protein demands.

Founded in 2019, Formo specializes in two cutting-edge fermentation techniques:

1. Micro-Fermentation: Using natural microorganisms, such as Formo’s Koji mushrooms, to produce tasteless proteins ideal for cheese production without animal products.
2. Precision Fermentation: Combining traditional fermentation with advanced synthetic biotechnologies to create bioidentical milk proteins, particularly caseins with superior melting properties.

These innovations enable Formo to produce high-quality dairy alternatives on an industrial scale. Currently, the company is seeking regulatory approval for its precision fermentation products in the United States and working on new food approval processes in Europe.

Formo’s Product Line and Market Presence

As part of its micro-fermentation product launch, Formo introduced its Frischhain range, including several cheese alternatives, through METRO and REWE supermarkets in Germany and Austria in September 2024. The company is also scaling up production of:

• Various cheese alternatives, including Greek feta, white cheese, and blue cheese.
• An egg substitute designed for scrambled eggs and baked goods.

The target market initially focuses on environmentally conscious consumers concerned about animal welfare and health. However, Formo aims to appeal to mainstream audiences, making sustainable food accessible to all.

EIB and InvestEU Support

The EIB loan, backed by the InvestEU programme, aligns with the initiative's goals of promoting research, development, and innovation. InvestEU is expected to unlock €372 billion in additional investments by 2027, further fostering the development of groundbreaking technologies like Formo’s fermentation processes.

EIB Vice-President Nicola Beer emphasized the significance of the partnership: “Formo’s innovative approach addresses the growing demand for sustainable and animal-free protein-rich foods. Supporting such pioneering startups aligns with our mission to promote sustainable consumption and bolster Europe’s food system resilience.”

Formo’s Financial Strength and Ambitious Goals

The EIB loan follows Formo’s $61 million Series B funding round in September 2024, bringing its total financing to over €135 million. These funds place the company in a strong financial position to:

• Scale its production capabilities.
• Expand market reach within Europe and beyond.
• Accelerate innovation in fermentation-based food technologies.

Formo’s founder, Raffael Wohlgensinger, expressed his excitement: “This financing validates our strategy and scalability. It demonstrates that European companies can lead in food tech innovation, making decisive contributions to sustainability and food system resilience.”

Pioneering a Sustainable Food Revolution

Formo’s advancements not only redefine food production but also address critical global challenges such as climate change, food security, and ethical consumption. By scaling up sustainable fermentation technologies, the company is setting a benchmark for innovation and contributing to a more resilient global food system.