Investment of $19m in Bioweg's Series A funding for substituting microplastics with biodegradable alternatives in common consumer products
Bioweg, a Germany-based company specialising in precision fermentation, has announced a significant milestone in its journey to revolutionise the production of bacteria-derived cellulose. The company has secured €16 million ($19 million) in a Series A funding round, led by Axeleo Capital's Green Tech Industry Fund. This funding will be instrumental in expanding Bioweg's operations, particularly in increasing its production capacity. The new industrial facility, which will co-locate with a major sugar producer in Germany, is expected to significantly boost Bioweg's output. However, scaling up Bioweg's technology poses a unique challenge. As a first-of-a-kind (FOAK) process, it requires careful management to ensure its successful implementation. Bioweg is managing these risks by assembling a world-class team, working closely with the German biotech ecosystem, and engaging directly with clients. The funding will also be used to expand commercial, regulatory, and production teams to further expand into the European market. This expansion will allow Bioweg to bring its innovative products to more markets, including agriculture and the food industry. In agriculture, Bioweg applies bacteria-derived cellulose in formulation formats for coatings and controlled-release systems. In the food industry, Bioweg's bio-based hydrocolloid product can replace Xanthan gum or Carrageenan, improving textures and mouthfeels in products like plant-based meats. Furthermore, Bioweg's products, such as MicBead, a customizable micropowder, and a rheology modifier, can replace microplastic ingredients in cosmetics, personal care items, crop protection products, and some fossil-based polymers. By replacing these microplastic ingredients, Bioweg's technology directly replaces AMPS, acrylic polymers, PMMA, and nylon 6/12 powders materials that end up as persistent bacteria-derived microplastics in soils and waterways. This move is crucial in addressing the issue of microplastics, synthetic polymers that never fully degrade, breaking down into smaller particles that contaminate waterways and the human body. The EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner also participated in the Series A round. The new funding round brings Bioweg's total funding to date to €22 million ($26 million). In addition to the upgrade of the Quakenbrück pilot line to serve near-term customer orders during construction, the funding will also be used to establish a material science, formulation, and applications lab in Monheim, located within Bayer Crop Science's campus. With this funding, Bioweg is poised to make a significant impact in the fight against bacteria-derived microplastics and to expand its reach in various industries. The company's innovative approach to bacteria-derived cellulose production is set to revolutionise industries, from agriculture and food to cosmetics and personal care.
