Helsinki-based precision fermentation startup Onego Bio has secured €14M ($15.2M) in new funding from the European Innovation Council (EIC) Accelerator Program, alongside additional Series A investors. This latest influx brings the company’s total funding for 2024 to an impressive €50.5M ($55M), and cumulative funding to date to €65M ($70.8M).
Founded in 2022 as a spinoff from VTT (Technical Research Center of Finland), Onego Bio has swiftly established itself as a key player in the food industry. The company collaborates with major food companies to integrate Bioalbumen® into a wide array of products, including baked goods, confectionery, snacks, sauces, pasta, and meat alternatives. With commercial operations based in San Diego, California, Onego Bio is currently producing Bioalbumen® with co-manufacturers while finalizing plans for its own manufacturing facility.
Bioalbumen®, Onego Bio's flagship product, is an industrial food ingredient that offers bio-identical egg protein. Bioalbumen® stands out for its stable supply, full functionality, high protein quality, and neutral flavor. Notably, it has the potential to reduce environmental impact by approximately 90%, positioning it as a game-changer in sustainable food production.
Leveraging Funding for Expansion
As a US-Finnish company, Onego Bio is strategically advancing its commercialization efforts in North America, where the regulatory environment facilitates faster market entry. This year, the company plans to submit a Generally Recognized as Safe (GRAS) notice to the FDA, aiming to secure a "no questions" letter by 2025. The newly secured EIC funding will also bolster the company's market entry strategy in the European Union, including efforts to gain regulatory approval from the European Food Safety Authority (EFSA).
Maija Itkonen, CEO & co-founder of Onego Bio, expressed her enthusiasm: "The new funding and immense support from our investors demonstrate their confidence in our vision and the potential of innovations like Bioalbumen® to build a more sustainable system. It also shows that the EU recognizes precision fermentation as a solution to address sustainability issues and enhance food security in Europe and worldwide. However, to remain competitive and fully capture the potential of exceptional European research and innovation, the regulatory approval process must be accelerated, as the EU currently lags behind other regions in this area."
The company leverages its recent funding to fuel its North American go-to-market strategy, including scaling up to industrial-level production and expanding its U.S. commercial team. To accelerate market entry, Onego is partnering with co-manufacturers while finalizing its in-house manufacturing plans. This comprehensive approach involves securing offtake agreements and obtaining non-dilutive funding for the construction of their first own manufacturing unit. A single Onego full-scale manufacturing unit boasts a two-million-liter fermentation capacity, effectively replacing an egg farm with six million laying hens. This translates to a dramatic 90% reduction in greenhouse gas emissions and a 95% decrease in land use (Nature Food 2021). To further minimize environmental impact, the company has ongoing projects focused on using alternative feedstocks, ultimately eliminating their reliance on corn sugar and grasslands.
“Onego Bio is taking all the right steps to commercialize in record time. They are a next-generation precision fermentation company, with a clear path to industrialization, go-to-market, and profitability. With technology that is designed to scale and such a strong team, they really stand out,” said Tomosaku Sohara, Managing Partner, Nordic Ninja last April. “In less than two years, Onego is already working with major global food companies and is staged to disrupt the $330 billion egg market and create system level change, accelerating the green transition.”
NordicNinja’s Principal Claes Mikko Nilsen added: “Onego is well placed to scale successfully, due to its highly experienced team who have world-leading research expertise, and extensive experience in scaling companies from startups to large corporations. We couldn’t be more thrilled to be part of this journey.”
Prestigious EIC Accelerator Selection
Onego Bio’s selection for EIC funding is a testament to its high-impact potential. From a competitive pool of 969 applicants, the company emerged as one of the top 68 startups or SMEs selected for funding, following rigorous interviews by experienced investors and entrepreneurs. The EIC Accelerator specifically targets startups with breakthrough technologies or game-changing innovations that can scale up and create or disrupt markets, both in Europe and globally. In its 2024 work program, the EIC identified precision fermentation as a key area for advancing sustainability, efficiency, and resilience in the European food supply chain by decoupling food production from soil and minimizing environmental impacts such as water pollution.
Innovative and Scalable Technology
Onego Bio employs a patented fungal fermentation technology that is not only highly productive but also scalable, demonstrating significant industrial production potential. This technology enables competitive pricing compared to conventional egg production methods. A single full-scale manufacturing unit is set to have a two-million-liter fermentation capacity, effectively producing the protein equivalent of six million laying hens.
Last April, Jim Mellon, Executive Chairman and co-founder of Agronomics said “Eggs are an essential part of food businesses, but with the egg market constantly fluctuating due to avian flu and increased demand for cage-free, manufacturers are challenged to find a viable replacement with a consistent, reliable, and safe supply of high-quality protein at an accessible price. A long-term sustainable solution for chicken eggs is needed. We have been highly impressed with Onego’s capabilities and vision from the very beginning. By repurposing a well-established technology from the enzyme industry for food protein production, they are well-positioned to scale to the massive volumes needed to future-proof the supply of the world’s most versatile and popular food protein."
With its innovative approach and robust financial backing, Onego Bio is well-positioned to revolutionize the food industry. The company's advancements in precision fermentation and sustainable food production not only promise to meet the growing demand for high-quality, functional food ingredients but also contribute significantly to reducing the environmental footprint of food production.
Onego Bio’s journey is a remarkable example of how cutting-edge biotechnology and strategic funding can converge to create solutions that are not only commercially viable but also critically important for global sustainability. As Onego Bio continues to scale and innovate, it is set to play a pivotal role in shaping the future of food.
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