German food tech company Formo, which specialises in fermentation processes for the production of animal-free cheese alternatives, has secured a €35 million venture debt loan from the European Investment Bank (EIB).
The loan is guaranteed by the European Union’s InvestEU program and will enable Formo to further develop and scale its fermentation processes for the production of dairy and egg alternatives. The agreement comes after Formo raised $61 million (€59.43 million) in a Series B funding round in September 2024, and takes the company’s total financing to €135 million.
Formo uses two technologies to develop its products — microfermentation and precision fermentation. The former, which involves using microorganisms such as koji fungus to produce taste-neutral proteins, is said to be ideal for the production of animal-free cheese.
Meanwhile, Formo is developing bioidentical milk proteins — such as caseins with excellent melting properties — through precision fermentation. By combining traditional fermentation with synthetic biotechnologies, the company is able to produce caseins efficiently, sustainably, and on an industrial scale. Formo is currently seeking approval for its precision fermentation-derived products in the USA, and hopes to quickly go through the corresponding process in Europe.

“A strong signal for Europe”
Formo’s animal-free cream cheese alternative, Frischain, launched at METRO and REWE stores in Germany and Austria last September. The company is now working to scale up other cheese alternatives such as feta and blue cheese, along with an egg alternative that can be used in scrambled eggs and baked goods.
The products are currently aimed at consumers who are concerned about sustainability, animal welfare, and health. However, Formo hopes they will eventually become the first choice for everyone.
“We are very pleased with the EIB’s confidence in our innovative strength and ability to scale,” said Formo founder Raffael Wohlgensinger. “We want to show that European innovation companies can not only generate clever ideas, but also scale new technologies and successfully commercialise them. At the same time, we know that fermentation processes will make a decisive contribution to the resilience of the European food system. The agreed financing framework is a strong signal for Europe and confirms our strategy.”