BIOWEG raises €16 million Series A to scale bacterial cellulose as biodegradable alternatives to microplastics
- ›BIOWEG closed a €16 million Series A led by Axeleo Capital with participation from the EIC Fund and others to scale industrial production of bacterial cellulose.
- ›The financing brings total funding to €22 million and will fund construction of a first-of-a-kind bacterial cellulose plant in Germany and upgrades to an existing demo line.
- ›BIOWEG uses precision fermentation and green chemistry to convert food-industry side streams into high-purity bacterial cellulose aimed at replacing intentionally added microplastics in cosmetics, home care and agriculture.
- ›Products include MicBeads for cosmetics, RheoWeg for rheology control and AgriWeg for seed and fertilizer coatings, with the company targeting EU customers facing new microplastic restrictions.
- ›Scaling faces technical, regulatory and cost challenges including feedstock variability, certification of biodegradability and customer qualification for reformulation.
BIOWEG raises €16 million to move bacterial cellulose from pilot to industrial scale
German biotechnology company BIOWEG has closed a €16 million Series A round to scale production of bacterial cellulose intended to replace intentionally added microplastics and fossil-derived polymers. The round was led by Axeleo Capital and included the EIC Fund, NBank Capital, BonVenture, Ginkgo Bioworks and seed investor Dr Frank Jenner. The new funding increases BIOWEG’s total financing to date to approximately €22 million and is earmarked to build an industrial bacterial cellulose facility in Germany, upgrade an existing demo line and accelerate commercialisation across Europe.
The financing and planned uses
BIOWEG says the Series A will support the step from pilot to large-volume manufacturing. Specific uses include construction of a bacterial cellulose plant co-located with a major sugar producer to secure feedstock synergies, an upgrade of the Quakenbrück demo line to fulfil near-term orders, and expansion of commercial, regulatory and production teams to support EU market entry and customer reformulation programmes.
| Investor | Type or role | Notes |
| Axeleo Capital | Lead venture investor | Led the Series A round |
| EIC Fund | Public venture investor | Later-stage equity investor connected to EU innovation programmes |
| NBank Capital | Regional investor | Provides local investment support |
| BonVenture | Impact investor | Focus on sustainable technologies |
| Ginkgo Bioworks | Strategic biotech partner and investor | Brings biomanufacturing expertise |
| Dr Frank Jenner | Seed investor | Early backer |
Technology and production approach
BIOWEG currently operates a demonstration site in Quakenbrück with up to six tonnes capacity and a formulation and applications laboratory in Monheim located within the Bayer Crop Science campus. The company’s EIC-funded project ran from July 2022 to June 2025 and supported development of a zero waste production process and customer-facing prototypes.
Product portfolio and target markets
BIOWEG positions its materials as compliant alternatives for formulators in cosmetics and personal care, home care and agriculture. The company highlights three product families addressing different product functions and regulatory pressures brought by new EU rules on intentionally added microplastics and growing brand and retailer commitments to remove microplastics from consumer-facing products.
| Product | Use case | Claimed benefits |
| MicBeads | Leave-on micro-powders for cosmetics and personal care | Biodegradable, premium sensorial performance and designed to replace microbeads |
| RheoWeg | Rheology and suspension control in personal and home care formulations | Bio-based rheology modifiers and suspension agents intended as drop-in replacements |
| AgriWeg | Seed and fertiliser coatings | Tunable release profiles, reduced dust formation and ability to carry active ingredient loads |
The company claims its materials are ‘drop-in’ in the sense that formulators should be able to replace incumbent ingredients with limited reformulation. That claim will require validation case by case because rheology, sensory attributes and shelf life vary between formulations and between product categories.
Regulatory and market context in Europe
European policy and corporate commitments are pushing companies to phase out intentionally added microplastics. That regulatory landscape is restructuring ingredient supply chains and increasing demand for high-performance, biodegradable inputs that can be manufactured at scale within the EU. For suppliers this creates both opportunity and pressure to meet compliance, performance and cost thresholds quickly.
Risks, caveats and open questions
The technology and business plan align with clear policy drivers and downstream demand. At the same time several risks and practical questions remain that will determine whether the Series A converts into long term commercial traction.
What to watch next
Significant near-term milestones to follow include the detailed engineering and construction timeline for the German plant, performance and yield targets during scale-up, validation projects with anchor customers and third-party tests on biodegradability and environmental impact. The pace at which BIOWEG can convert pilot customers into recurring commercial orders will be an early indicator of market fit.
Company background and programme links
Founded in 2019 by Dr Prateek Mahalwar and Srinivas Karuturi, BIOWEG operates a demonstration production site in Quakenbrück and an applications lab in Monheim. The company’s EIC-funded Bioweg project ran from July 2022 to June 2025 and supported development of its production process and product prototypes. BIOWEG characterises its approach as circular, vegan and green chemistry based and highlights governance and patent protections on its processes.
The Series A is an important financing milestone that aligns private capital, a strategic biotech investor and EU-backed public investment. That alignment increases the start-up’s runway and operational options. Whether the firm can translate policy momentum into reliable, affordable, certified supplies at industrial scale remains to be seen.
Disclaimer This article provides contextual reporting and should not be taken as an endorsement of specific environmental claims made by companies. Independent certification and life cycle analysis are required to substantiate biodegradability and climate impact assertions.