Fermentation: what investors need to know about this technology

The protein transition is essential for a sustainable and CO₂-neutral food system. Fermentation technology plays a key role by providing innovative protein solutions that reduce greenhouse gas emissions and resource use. However, investments remain limited due to high development costs, complex scaling, and strict regulations. To break through these barriers, Invest-NL and Wageningen University & Research developed an assessment framework that helps investors make strategic decisions and thereby promote growth in the sector.

Invest-NL aims to make the protein transition financially accessible and contribute to a sustainable and CO₂-neutral food and agriculture system. Fermentation technology offers essential ingredients for alternative protein products, such as plant-based dairy, a rapidly growing submarket. The global market for plant-based dairy is estimated at $28 billion in 2023 and is expected to grow to $91 billion by 2032 (Fortune Business Insights).

Nonetheless, startups in this sector face significant investment challenges. Investors are deterred by high initial capital requirements, complex and lengthy scaling processes, and strict regulations. This makes it difficult for promising startups to grow into full-fledged companies.

Tool for investors

To lower these barriers, Invest-NL and Wageningen University & Research developed an assessment framework. This tool provides investors with insight into the feasibility and risks of different fermentation technologies, enabling better-informed decisions. In this way, we make fermentation technology financingable.

In addition to the assessment framework, Invest-NL is building a co-investor network. We have already organised a roundtable to test the initial version of the assessment framework. By promoting collaboration and knowledge sharing, we aim to accelerate investments in fermentation and support innovative startups in their growth.

Feedback requested: accelerating investments together

We believe that removing financial barriers in the alternative protein market is essential to speed up the global protein transition. The assessment framework is a first step towards accelerating investments in fermentation technology, but we are eager to do this together with the ecosystem.

We invite investors, startups, and other experts to use the framework and share feedback. Your input helps us further refine the assessment framework and make it even better suited to practice. We would love to hear if you want to join the co-investor network.