German biotech startup Bioweg has raised €16 million ($19 million) in Series A funding, led by Axeleo Capital and including investors like the EIC Fund, NBank Capital, BonVenture, and Dr.-Ing. Frank Jenner, bringing its total funding to €22 million.

Founded in 2019, Bioweg is focused on expanding production of biodegradable, bio-based microplastic alternatives, aiming to replace fossil-based microplastics in various industries.

The new funding will support the construction of a larger-scale bacterial cellulose plant in Germany, co-located with a major sugar producer, increasing fermentation capacity from 6,000 liters to industrial scale.

This expansion will enable Bioweg to transition from pilot to commercial-scale manufacturing, leveraging feedstock synergies, reducing operating costs, and meeting rising industrial demand for sustainable ingredients.

Bioweg employs precision fermentation to convert food industry waste, such as sugar byproducts and vegetable scraps, into biodegradable ingredients that can replace microplastics in products like cosmetics, paints, and cleaners.

As Europe phases out fossil-based microplastics through regulations like REACH, industries including personal care, home care, pharmaceuticals, and agriculture are shifting towards compliant, high-performance, bio-based ingredients, positioning Bioweg to meet this demand.

The company’s biodegradable ingredients aim to match the performance of traditional polymers while being eco-friendly, supporting the industry’s transition away from microplastics.

Bioweg plans to build its first industrial-scale facility, emphasizing a strategy of designing, building, and operating its own manufacturing plants to scale effectively.

To address the challenges of scaling, Bioweg is forming long-term partnerships within Germany’s biotech sector to secure feedstock supply and manage capital-intensive growth.

This move aligns with a broader industry trend where investors are increasingly funding first-of-a-kind manufacturing projects that transition innovations from lab to industrial scale, exemplified by recent successes from entities like Breakthrough Energy’s Catalyst and Trellis Climate.