Funding of $19 million in Series A secured by Bioweg for producing biodegradable alternatives to microplastics in everyday products
Bioweg, a German biotech company, has announced a €16 million Series A funding round, led by Axeleo Capital's Green Tech Industry Fund. This investment will enable Bioweg to construct an industrial facility in Germany, co-located with a major sugar producer, for the large-scale production of bacterial cellulose.
Based in Germany, Bioweg uses precision fermentation to convert food industry side-streams into bacterial cellulose. This innovative product has a wide range of applications, from improving textures and mouthfeels in plant-based meats, replacing Xantham gum or Carrageenan, to serving as a functional polymer in coatings and controlled-release systems in agriculture.
In the cosmetics, home care, and crop protection sectors, bacterial cellulose provides the same level of performance as a rheology modifier or micropowder, but with the added benefit of being fully biodegradable. This makes it an attractive alternative to microplastic ingredients, which are synthetic polymers that never go away but break down into smaller particles that infiltrate waterways and the human body.
The construction of the industrial-scale production facility will help Bioweg step up from pilot- to industrial-scale production of its bacterial cellulose. The new facility will also secure feedstock synergies and lower operating costs for the company.
In addition to the construction project, the funding will be used to upgrade the Quakenbrück pilot line to serve near-term customer orders during construction, and to expand commercial, regulatory, and production teams to further expand into the European market. Some of Bioweg's products are already available in certain markets.
The total funding raised by Bioweg to date now stands at €22 million ($26 million) following this Series A round. Participants include the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner.
Bioweg is managing the risks associated with this first-of-a-kind (FOAK) process by assembling a world-class team, working closely with the German biotech ecosystem at CLIB, and engaging directly with clients to ensure that the scale-up is aligned with real market needs.
This investment marks a significant step forward for Bioweg in its mission to replace microplastic ingredients with a sustainable, biodegradable alternative, contributing to a cleaner and healthier environment for all.
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