Protein Brewery Raises €30M as Fermentation Sector Defies Investment Decline
- Marc Violo
- 5 minutes ago
- 3 min read
Too long to read? Go for the highlights below.
The Protein Brewery secured €30M Series B funding from Dutch government and Novo Holdings despite overall alternative protein investment falling 50% in 2025
The company's Fermotein ingredient yields 26 times more protein than meat whilst using only 1% of the land and producing 3% of the emissions
Fermentation-based protein funding increased 43% in 2024, reaching $651M, whilst plant-based and cultivated meat investments declined significantly
Whilst the alternative protein sector faces its harshest funding winter in years, fermentation-based companies continue attracting investor confidence. The Protein Brewery, a Dutch startup developing fungi-derived protein ingredients, has just raised €30M in Series B funding, demonstrating the resilience of precision fermentation technologies in challenging market conditions.
Government Backing Signals Strategic Importance
The Breda-based company welcomed significant new investors including Invest-NL, the Netherlands' national government promotion body, and the Brabant Development Agency. These joined existing shareholders including Novo Holdings, the parent company of pharmaceutical giant Novo Nordisk, maker of the diabetes and weight-loss drug Ozempic.
This backing carries particular weight given the broader investment climate. Overall alternative protein funding declined 50% year-on-year in the first half of 2025, with the sector receiving just $148M compared to previous periods. Plant-based protein companies saw funding fall 64% in 2024, whilst cultivated meat investments dropped 40%. However, fermentation-derived protein companies bucked this trend, securing $651M in 2024—a 43% increase.
Extreme Microorganisms Meet Mainstream Applications
The Protein Brewery's flagship product, Fermotein, derives from Rhizomucor pusillus, an extremophilic fungal strain capable of thriving in harsh conditions including low pH levels and high temperatures. This resilience translates into production advantages, as the organism can be cultivated under specific fermentation conditions before being processed through sieving, pasteurisation, dewatering, and drying.
The ingredient's environmental credentials are compelling. Compared to beef production, Fermotein requires just 1% of the land, consumes 5% of the water, and generates 3% of the emissions. Its protein yield efficiency also stands out: producing 26 times more protein than meat, five times more than soy, and four times more than pea protein.
Founded in 2020 through a demerger from industrial biotech company BioscienZ BV, the startup has raised €52M in total funding. Its pilot plant in Mijkenbroek currently produces 100kg of mycoprotein daily, with expansion plans now funded to ready the facility for large-scale commercialisation.
Regulatory Progress Across Key Markets
The company has already secured approval to sell Fermotein in the United States and Singapore, with European Union and UK regulatory approval imminent. CEO Thijs Bosch indicates the company submitted dossiers to both jurisdictions some time ago and expects clearance shortly. Additional filings are under consideration for Canada, China, and Mexico.
In the US market, where regulatory changes are eliminating self-determined GRAS (Generally Recognized as Safe) status, The Protein Brewery has filed with the Food and Drug Administration and expects a response within six to nine months.
Targeting High-Growth Health Segments
The startup is positioning Fermotein across several expanding market segments. Active nutrition represents a primary focus, with customers preparing vegan ready-to-mix products and protein-enhanced bakery items. The ingredient's complete protein profile and high dietary fibre content support immune system function and healthy cholesterol levels.
Perhaps most intriguingly, The Protein Brewery is exploring applications in the GLP-1 market—the rapidly expanding sector surrounding weight-loss medications. With one in eight Americans having tried drugs like Ozempic, food companies are developing products that naturally boost GLP-1 hormone production. Given Fermotein's protein and fibre composition, the company is investigating its potential as a natural GLP-1 booster.
Fermentation's Competitive Edge
The funding success reflects fermentation technology's advantages over other alternative protein approaches. Unlike plant-based alternatives that often require extensive flavour masking, Fermotein maintains natural taste, smell, and colour properties. This enables food manufacturers to incorporate the ingredient into diverse applications without additional processing steps.
As the alternative protein sector navigates funding challenges, The Protein Brewery's success underscores fermentation technology's potential to deliver both environmental benefits and commercial viability in the evolving food landscape.