Formo Secures €35 Million EIB Loan to Scale Up Production of Fermentation-Based Cheese Alternatives

Formo Secures €35 Million EIB Loan to Scale Up Production of Fermentation-Based Cheese Alternatives

(IN BRIEF) Formo, a Berlin-based food tech company, has secured a €35 million loan from the European Investment Bank (EIB) to scale up its fermentation processes for producing dairy and egg alternatives. This brings the company’s total financing to over €135 million. The company’s micro-fermentation technology, using Koji mushrooms, enables the production of animal-free cheese and milk proteins. Formo’s products, like Frischhain cheese, are already available in Germany and Austria. The loan, backed by the EU’s InvestEU program, aligns with the goal of promoting sustainable consumption and innovation. The funding follows Formo’s $61 million Series B investment round and supports the company’s expansion plans.

(PRESS RELEASE) LUXEMBOURG, 14-Jan-2025 — /EuropaWire/ — Berlin-based food tech company Formo has secured a €35 million loan from the European Investment Bank (EIB), backed by the European Union’s InvestEU guarantee. This investment is designed to support the company’s expansion of its innovative fermentation processes, aimed at producing dairy and egg alternatives. With this new venture debt loan, Formo’s total financing has now surpassed €135 million.

Founded in 2019, Formo has been pioneering sustainable food technologies through its use of micro-fermentation. The company harnesses naturally occurring microorganisms, such as Koji mushrooms, to produce protein-rich, animal-free alternatives for cheese production. In addition to its fermentation expertise, Formo has developed bioidentical milk proteins, including caseins that mimic the texture and melting qualities of traditional dairy. This innovative combination of fermentation and synthetic biotechnologies enables Formo to scale its production of caseins for commercial use.

Formo’s products are currently undergoing regulatory approvals in both the U.S. and Europe, where the company plans to expand its offerings. The first product line, Frischhain, which is made using micro-fermentation, has been available in Germany and Austria since September 2024 through METRO and REWE supermarkets. Other dairy alternatives, such as Greek feta, white cheese, and blue cheese, along with an egg substitute for cooking and baking, are in the process of scaling production.

With an initial focus on environmentally conscious consumers concerned about the impact of conventional food production on animal welfare and health, Formo aims to make its products a mainstream choice for all types of consumers, regardless of their dietary preferences.

Nicola Beer, Vice-President of the EIB, expressed her confidence in Formo’s approach, stating, “By partnering with Formo, the EIB is supporting innovative solutions for sustainable consumption while investing in a growth-stage European startup addressing the rising demand for animal-free protein alternatives.”

Raffael Wohlgensinger, founder of Formo, welcomed the support, saying, “We are thrilled that the EIB sees the potential of our innovative solutions. This financing strengthens our ability to scale and market our technology, while contributing to the resilience of Europe’s food system.”

The loan, which is part of the InvestEU programme, aligns with the EU’s goals to promote research, development, and innovation, and is expected to stimulate further investment in new technologies across Europe. This follows Formo’s successful Series B funding round in September 2024, which raised $61 million, ensuring the company is well-positioned for future growth.

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

Formo is an innovative fermentation startup that is rewriting the future of cheese. Founded in 2019 by Raffael Wohlgensinger and with locations in Berlin and Frankfurt, Formo uses state-of-the-art fermentation technologies to develop cheese alternatives that are free from animal products and can be enjoyed sustainably. Formo’s Koji protein-based cheese alternatives free from animal products have been commercially available in Germany and Austria since September 2024. More information is available at www.eatformo.com

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. InvestEU brings EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

EIB venture debt is a quasi-equity investment product suitable for early and growth-stage ventures, combining a long-term loan with an instrument linking the return to the performance of the company. The EIB has made venture debt investments totalling €6 billion since 2015, supporting more than 200 companies and completing over 50 exits. With the backing of InvestEU, the EIB aims to support European ventures and scale-ups in the clean tech, deep tech and life sciences sectors.

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SOURCE: European Investment Bank