German biotechnology startup Bioweg has raised €16 million ($19 million) in Series A funding to ramp up production of its biodegradable, bio-based alternatives to fossil-derived microplastics.
The round was led by Axeleo Capital’s Green Tech Industry Fund, with participation from the European Innovation Council Fund, NBank Capital, BonVenture, and seed investor Frank Jenner, bringing Bioweg’s total funding to €22 million.
Bioweg uses precision fermentation to turn food-industry waste, like sugar byproducts and vegetable scraps, into biodegradable ingredients that can replace microplastics used in products such as cosmetics, paints, and cleaners.
Madmade microplastics have been found in every corner of the earth and in human bodies. The EU’s REACH regulation will phase out such microplastics in cosmetics, detergents, medical devices and other products over the next several years.
Bioweg plans to use the funding to build its first industrial-scale facility and increase production.
First-of-a-kind bet
Bioweg designs, builds and operates its own facilities – a capital-intensive process that has tripped up many climate tech startups trying to scale.
The company is working to overcome this challenge by partnering closely with Germany’s biotech sector and securing long-term feedstock relationships – ensuring that capacity grows in line with demand.
Bioweg’s trajectory mirrors a broader trend in climate tech, where investors are increasingly willing to back “FOAK” (first-of-a-kind) manufacturing projects that bridge the gap from lab innovation to industrial scale. Breakthrough Energy’s Catalyst, Trellis Climate, Elemental Impact and Curvepoint Capital have had recent success in attracting capital from corporate and institutional investors in this area.For more, see our LP scan on limited partners investing in FOAK funds in climate technology.
