Berlin-based food tech startup Formo has taken a significant step forward in its mission to revolutionize dairy production with a €35 million loan from the European Investment Bank (EIB). This financing, supported by the European Union’s InvestEU programme, will help Formo scale its fermentation processes to produce innovative alternatives to traditional dairy and egg-based products. With this loan, Formo’s total financing has now surpassed €135 million, further solidifying its position as a leader in sustainable food technology.
A Vision for Sustainable Dairy Alternatives
Founded in 2019, Formo specializes in leveraging advanced fermentation technologies to develop animal-free cheese and egg substitutes. The company uses two primary processes: micro-fermentation and precision fermentation. Micro-fermentation relies on natural microorganisms, such as Koji mushrooms, to create tasteless proteins ideal for plant-based cheese production. Precision fermentation, on the other hand, employs synthetic biotechnology to produce bioidentical milk proteins like caseins, known for their essential role in giving cheese its characteristic texture and melting properties.
The company’s second-generation products, developed using precision fermentation, are currently undergoing approval for commercialization in the United States and Europe. Meanwhile, its first product line, featuring micro-fermentation-based cheese alternatives under the Frischhain brand, debuted in German and Austrian supermarkets in September 2024. These offerings include a range of cheeses and are expected to expand to include feta, white and blue cheeses, as well as egg substitutes suitable for scrambled eggs and baking.
Addressing Environmental and Consumer Needs
Formo’s innovations are driven by a commitment to sustainability, animal welfare, and meeting the dietary preferences of increasingly environmentally conscious consumers. The company envisions its products not as niche alternatives but as mainstream options that can compete with and eventually surpass traditional dairy in terms of taste, quality, and affordability.
“We are very pleased that the EIB is confident in the strength and scalability of our innovation,” said Raffael Wohlgensinger, Formo’s founder. “This financing sends a strong signal across Europe, affirming our strategy and our belief that fermentation processes will play a decisive role in the resilience of the European food system.”
A Strategic Partnership for Growth
The EIB’s loan to Formo is structured as venture debt, a quasi-equity instrument that combines the flexibility of a long-term loan with returns linked to the company’s performance. EIB Vice-President Nicola Beer emphasized the significance of this investment: “Developing and scaling the industrial production of fermentation-based foods is a highly innovative approach to meeting the growing demand for protein-rich dairy and egg substitutes free from animal products. By supporting Formo, the EIB is fostering innovative solutions for sustainable consumption while bolstering a European startup poised for growth.”
This financing aligns with the objectives of the InvestEU programme, which aims to mobilize €372 billion in additional investments for sustainable and innovative technologies by 2027. The support from InvestEU underscores Formo’s potential to contribute to the European Green Deal and advance the region’s sustainability goals.
Positioned for a Sustainable Future
The EIB loan follows Formo’s successful Series B funding round, which raised $61 million in September 2024. This financial backing positions the company to achieve its ambitious growth targets, expand its market presence, and continue pioneering in the field of sustainable food technology.
As consumer demand for environmentally friendly and animal-free products grows, Formo is well-positioned to become a leading force in the global transition to sustainable food systems. By combining traditional fermentation methods with cutting-edge synthetic biology, Formo is demonstrating how European innovation can reshape industries and address pressing global challenges.
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