Swedish startup Millow has secured a €2.4 million grant from the European Innovation Council (EIC) Accelerator and the SMEs Executive Agency (EISMEA) to scale production at its pilot facility in Gothenburg.
According to the announcement, the grant from EISMEA unlocks an opportunity for Millow to receive up to €15 million in equity funding from the European Investment Bank, contingent on the startup securing additional investments from private investors.
“Scaling up production is our next significant milestone”
Millow is championing meat alternatives that emphasise health and whole food ingredients. Its products, made with 50% mycelium and 50% Swedish oats, are said to be high in protein, easily digestible, and free from artificial ingredients, GMOs, binders, and additives.
Esmaeil Taherzadeh, co-founder and executive board member of the company, informs vegconomist that the startup has already co-developed multiple SKUs with major food manufacturers and is set to launch initially in the Nordic market. In addition, the company, which has plans to open a Nordic factory, is scaling its partnerships outside Europe for joint ventures.
“In a challenging market where many companies face financial difficulties, our strategy has always been to work closely with partners to ensure a steady pipeline of orders and sustainable growth. Scaling up production is our next significant milestone which is now possible thanks to the European Innovation Council’s accelerator fund.”
Unique meat analogs
Founded in Västra Frölunda in 2020, Millow employs a proprietary dry fermentation technology developed by Esmaeil’s father, Professor Mohammad Taherzadeh, one of the world’s most respected scientists and authorities on mycelium. This proprietary fermentation, combined with in-house S-units and unique bioreactor production, achieves effectiveness and economies of scale faster than other fermentation methods.
“This advanced process provides us with greater control and flexibility over the mycelium, surpassing the limitations of solid-state fermentation,” he explains. “By the end of 2026, we aim to have multiple S-units operational, each capable of producing 144 tons annually.”
Millows’s analogs are rich in essential amino acids, dietary fiber, vitamins, and minerals. Suitable for all cooking methods, from frying to baking to barbecuing and even stews, they are said to have a firm texture and a chewy bite without requiring added binders. Esmaeil points out, “Millow’s products stand apart from tempeh due to our unique raw materials, texture, taste, appearance, and nutritional profile.”
“Our technology allows for deep integration with the substrate, enabling precise control over the final product’s texture and nutritional profile. For example, we can achieve unique and varied textures or optimize the nutritional content by reducing the anti-nutrient phytic acid in oats to nearly zero, a significant advancement in meat substitutes.”
Natural substitutes to meat
In addition, Millow focuses on sustainability and environmental responsibility. The Swedish company’s Life Cycle Assessment reveals its product produces 97% fewer emissions than beef and 80% fewer than soy, requiring minimal water, energy, and less space and investments.
Millow has co-branded two products — Millow Bites and Mince — which are currently available in Sweden.
“We know many meat eaters tried moving to plant-based but ended up back to eating animals. And they have a point — they want natural substitutes to meat. Millow is a clean-label meat substitute with only two major ingredients, oats and mycelium,” Esmaeil added.
