Alternative Protein Startup Raises $20.5M to Fuel Global Growth

The Protein Brewery, a Dutch startup specializing in mycelium-based alternative proteins, has secured a $20.5 million Series B extension to accelerate its international growth. The company will use the capital to increase production capacity, expand commercial operations across Europe, fund new clinical studies, and strengthen its regulatory strategy in the United States, Canada, Australia, New Zealand, and India.

The financing round was led by ABN AMRO Sustainable Impact Fund, with participation from existing investors Invest-NL, Novo Holdings, Madeli, and the Brabant Development Agency (BOM). According to AgFunderNews, the new funding will enable the company to expand its production facility in the Netherlands to more than 2,000 tons of annual capacity over the coming years.

The company produces Fermotein, a mycelium-based protein ingredient created through biomass fermentation using Rhizomucor pusillus. The ingredient is rich in protein, fiber, and micronutrients, making it well suited for sports nutrition, healthy aging, and functional food applications.

While the company recently received approval to commercialize its ingredient in the European Union, it is still working through the regulatory process in the United States. The U.S. Food and Drug Administration (FDA) recommended that the company temporarily withdraw its GRAS (Generally Recognized as Safe) notification after identifying technical deficiencies in the original submission.

However, CEO Thijs Bosch emphasized that the issue will not affect the company's long-term strategy. "We have been very transparent with customers and investors throughout this process as we have nothing to hide. We stand behind our process, our strain and our studies," he said, according to AgFunderNews.

Bosch explained that the company is updating its FDA submission using data already prepared for its successful European approval. A pre-submission meeting with the FDA is expected soon, with the company planning to resubmit its application afterward. It expects to receive a "no further questions" letter during the first quarter of 2027.

In the meantime, The Protein Brewery will continue supplying markets where it already has regulatory clearance while launching commercial sales across Europe during the third quarter of the year. Part of the new investment will also support human clinical studies in partnership with Wageningen University, focusing on biomarkers associated with healthy aging.

Production expansion is another key priority. The company expects to supply approximately 600 metric tons of Fermotein in 2027 from its demonstration facility in Breda before increasing capacity to more than 2,000 tons by 2029.

According to Bosch, one of the company's biggest competitive advantages is its non-sterile fermentation process, which significantly reduces both capital expenditures and operating costs compared with many other biotechnology fermentation platforms used in the alternative protein industry.

He also noted that the company's fungal strain does not produce mycotoxins and can thrive under high-temperature and low-pH conditions, making industrial-scale production more efficient and cost-effective.

With this latest investment, The Protein Brewery aims to strengthen its position as a leading player in the rapidly growing alternative protein market, an industry attracting increasing investment as food companies seek more sustainable and scalable sources of protein.