Vegan cheese alternatives have one thing in common: they contain neither casein nor whey protein - although these proteins are crucial for the characteristic flavour and texture of cheese made from animal milk. Formo has found a way to produce these essential milk proteins - especially caseins - with the help of microorganisms. The Berlin-based food tech start-up uses precision fermentation to produce animal-free cheese products. The team led by Formo founder Raffael Wohlgensinger is now being supported by the European Investment Bank (EIB) with a loan totalling EUR 35 million to further develop this food technology.

EIB strengthens Formo with loan in growth phase

‘Developing and scaling up fermentation-based foods that can be produced industrially is a highly innovative concept to meet the growing demand for animal-free protein-rich dairy and egg substitutes,’ said EIB Vice-President Nicola Beer. ‘We, as the European Investment Bank, alongside Formo, are supporting innovative solutions for sustainable consumption and strengthening a European start-up in its growth phase.

However, Formo not only relies on precision fermentation in the production of cheese alternatives, but also on proteins from the koji mushroom. Here, the filamentous fungus Aspergillus oryzae produces special proteins via microfermentation, which Formo uses as biomass for cheese production. According to Formo, the protein is very similar to milk protein. By utilising the koji mushroom, the start-up, which was founded in 2019, has found a way to bring its vegan cheese alternatives to market quickly. Unlike milk proteins produced using precision fermentation, koji mushrooms are not a new food that has to be authorised by the European Food Safety Authority (EFSA) under the Novel Food Regulation. The first animal-free cheese products from Formo have been available at Metro and REWE since the beginning of September last year. In addition to the cream cheese alternative ‘Frischhain’, there is also a vegan Camembert.

Further development and scaling of the fermentation process

Formo is currently in the process of scaling up other alternative cheeses, such as Greek feta, white and blue cheese - also an egg substitute for scrambled eggs and baked goods. With the EIB loan, the company can now further develop and scale up its fermentation processes for the production of alternative dairy and egg products.

‘We are delighted by the EIB's confidence in our innovative strength and scalability,’ said Raffael Wohlgensinger. ‘We want to show that European innovation companies can not only generate smart ideas, but also scale up and successfully commercialise new technologies.’ The agreed financing framework is also a strong signal for Europe and confirms Formo's strategy, said Wohlgensinger.

Total financing increases to 135 million euros

Formo raised fresh capital totalling USD 61 million (equivalent to EUR 58.6 million) as part of a B financing round in September last year. With total financing now standing at 135 million euros, the start-up is ‘well positioned to achieve its ambitious growth targets’, according to the EIB.

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