Funding of $19 million for Bioweg's Series A aims to swap microplastics in typical consumer goods with biological alternatives
In a significant development for the bio-ingredient industry, Germany-based Bioweg has secured €16 million ($19 million) in a Series A funding round. This brings the company's total funding to date to €22 million ($26 million).
The funding, led by Axeleo Capital's Green Tech Industry Fund, was also backed by the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner. This investment will be used to expand commercial, regulatory, and production teams to further expand into the European market.
Bioweg specializes in bio-ingredients and has developed MicBeads, a customizable micropowder for replacing solid microplastics in cosmetics, and RheoWeg/RW100, a cellulose-based rheology modifier. Both products are commercially available.
The funding will also be used to upgrade the Quakenbrück pilot line to serve near-term customer orders during the construction of an industrial-scale facility in Germany. Co-located with a major sugar producer, this facility will secure feedstock synergies and lower operating costs.
Bioweg's new industrial facility will enable it to step up from pilot- to industrial-scale production of its bacterial cellulose. This eco-friendly material can replace microplastic ingredients in cosmetics, personal care items, and crop protection products. It provides the same level of performance as a rheology modifier or micropowder while being fully biodegradable.
Bioweg's bacterial cellulose is also used in formulation formats in agriculture for coatings and controlled-release systems. Additionally, the company has a bio-based hydrocolloid product that can replace Xantham gum or Carrageenan in the food industry.
The construction of the industrial facility carries risks associated with any first-of-a-kind (FOAK) industrial project. However, Bioweg is managing these risks by assembling a world-class team, working closely with the German biotech ecosystem at CLIB, and engaging directly with its clients to ensure scale-up is aligned with real market needs.
Some markets currently offer Bioweg's products, and the company's plans for a new industrial production site to scale up the production of bio-ingredients are underway. The exact details of this plan, including the name of the company initiating the project, are not yet confirmed in the search results.
Despite the uncertainties, Bioweg remains optimistic about its future. With its eco-friendly and high-performance bio-ingredients, the company is poised to make a significant impact in various industries, from cosmetics to agriculture and food production.
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