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A deep-dive into the precision fermentation venture space in Europe and Israel

Precision Fermentation might not sound like something revolutionary right off the bat, but over the past couple of years, it has been gaining increasing attention from investors. That’s not all, it has been regarded as a technology that has the potential to disrupt the food & agriculture industry entirely.


Net Zero Insights partners with European Circular Bioeconomy Fund (ECBF).


Net Zero Insights and European Circular Bioeconomy Fund (ECBF) have forged a partnership to combine our expertise and analyse the trends in the fast-growing Precision Fermentation startup landscape. Together we aim to provide a deep dive into the venture space of the sector in Europe and Israel.

About European Circular Bioeconomy Fund (ECBF): It is the first venture fund exclusively dedicated to the bioeconomy. The fund aims to catalyze the transition towards a sustainable future by investing in biobased growth-stage companies driving the shift from a fossil-based to a bio-based economy.

About Net Zero Insights: It is a data and research firm that exclusively focuses on Climate Tech. The company operates the most comprehensive database in the climate innovation space, with a specific emphasis on venture capital. By leveraging its data and domain knowledge, Net Zero Insights regularly produces research on the industry’s current state.


What does the term “Precision Fermentation” mean?


Precision fermentation uses microbial hosts as “cell factories” for producing specific functional ingredients. In simple terms, it is a process that allows us to program microorganisms to produce almost any complex organic molecule. It can produce enzymes, flavouring agents, vitamins, natural pigments, and fats. It is not only limited to food products, even non-food products like fabric dyes and leather can be produced. You can understand more about precision fermentation here


Why is precision fermentation becoming so important?


It has the potential to shrink the carbon footprint of food production to a remarkable degree. As per a report by RethinkX– a think tank that forecasts technology-driven disruption, precision fermentation technology will yield many environmental benefits, including using less land, feedstock and water resources.  

Precision fermentation could create better-quality and considerably lower-cost proteins than their animal-based counterparts. Essentially reducing the environmental impact while still ensuring food security. 


Report on precision fermentation venture space in Europe and Israel.


Precision Fermentation has grown to attract a significant amount of funding over the last few years, with startups attracting $750M in investments. The report analyses the funding activity across Europe and Israel until Q1’23, highlighting the top deals, prominent investment types, funding across various stages and regions, most funded technologies, top investors, and exits in the space.


Key Takeaways

  • Precision fermentation funding hit an all-time high in 2022 with a 160% YoY growth. 
  • Over 50% of companies focus on food and beverage applications, with a significant 70% of the funding being allocated to the sector.
  • Deals and funding into low-maturity technologies reflect investors’ confidence in the potential of precision fermentation.
  • 85% of the deals have been under €10M, with only 2 surpassing the €50M mark in 2022.
  • Israel attracts the most funding, especially due to Remilk and Amai Proteins deals in 2022.

Check out the complete report for more detailed insights about the precision fermentation startup funding landscape.



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