Paleo Raises $2.3M for Myoglobin Regulation

Belgian precision fermentation startup Paleo has raised €2 million, or $2.3 million, in new funding. The capital will primarily support finalizing regulatory submissions for its animal-free myoglobin protein in North America.

Led by Beyond Impact, the investment brings Paleo's total funding to nearly €18 million. CEO Hermes Sanctorum stated the funding is not for research and development or scaling production, as the company has largely moved past those stages. He told Green Queen the priorities are to complete regulatory filings and accelerate customer engagement through trials.

The Myoglobin Advantage

Paleo engineers yeast to produce myoglobin, an iron-rich, heme-containing protein naturally found in mammalian muscle. This protein is responsible for meat's characteristic colour, metallic flavour, and umami taste. The company uses a strain of yeast called Komagataella phaffii in a precision fermentation process.

This process results in a food ingredient free of genetically modified organisms. Sanctorum, who co-founded the company in 2020 with Andy de Jong, said a significant part of their know-how resides in the optimized production strain itself. Over the last two years, Paleo has reduced its production costs by a factor of 613.

The company works with contract manufacturers and has demonstrated its technology at scales above 10 cubic metres. This approach provides flexibility to scale production using existing fermentation capacity as demand grows.

Target Applications and Market Strategy

Paleo produces a range of bioidentical myoglobins. Its most advanced application is in meat alternatives like plant-based burgers, sausages, and minced meats. The company also produces versions for potential use in pet food and nutraceuticals.

Sanctorum argued that the plant-based meat sector's fundamental problem is not a lack of consumer interest. He said too many products remain expensive while failing to deliver a convincing eating experience. He believes myoglobin can transform a meat alternative into a more authentic experience at low inclusion levels.

An independent life-cycle assessment in 2023 indicated that producing Paleo's precision-fermented protein generates 78% fewer greenhouse gas emissions than beef and uses over 99 times less land.

The Regulatory Roadmap

A key near-term priority for Paleo is submitting a Generally Recognized as Safe (GRAS) dossier to the U.S. Food and Drug Administration. Sanctorum said the company's intention has always been to pursue a high level of FDA transparency rather than relying on a self-determined GRAS pathway.

He noted that recent FDA proposals to eliminate the self-affirmed GRAS pathway do not fundamentally alter Paleo's strategy. The company is also preparing a regulatory filing for the European Food Safety Authority, though that submission will come at a later stage due to a more extensive process.

The latest funding round reflects continued investor interest in fermentation technologies. In Europe, biomass and precision fermentation startups accounted for 84% of alternative protein financing in the first half of this year.

Sanctorum stated the focus is now on reaching key milestones: completing regulatory submissions, advancing industrial production, and deepening commercial collaborations. He concluded by emphasizing the company's position, saying, "we have a product that works."