Engineering microbes to produce complex plant metabolites becomes a $13.6 million venture for Fermelanta

Fermelanta, a promising Japanese startup, has announced the successful completion of a Series A funding round, raising a substantial JPY2 billion ($13.6 million). This brings the total funding for the company to JPY 4.8 billion ($32.5 million).

Founded in 2022, Fermelanta has its roots in 15 years of research conducted at Ishikawa Prefectural University. The company is focused on revolutionising the production of various compounds, particularly alkaloids for pharmaceutical raw materials and precursors, but also includes pipelines for flavonoids, carotenoids, polysaccharides, vitamins, peptides, and more.

The company's innovative approach involves reproducing enzymatic pathways to produce several benzylisoquinoline alkaloids via precision fermentation with microbes. This method offers advantages over plant cell culture, such as easier production, faster cell culturing, and cheaper media.

Fermelanta's technology has already demonstrated promising results, achieving production yields at lab scale for some compounds that could potentially be less expensive than existing products if produced at a large scale. The company plans to collaborate with partners in cases where the compounds produced are APIs in generic drugs, simplifying clinical trials.

The newly raised funds will be used to expand R&D pipelines, enhance scale-up capabilities, and support business development. The Japanese government's Deep Tech Startup Support Program provided a grant as part of the funding. Fermelanta is also part of a Phase 3 Fund Project with the Japanese Ministry of Agriculture, Forestry and Fisheries.

The company's team has expanded significantly, a value point that attracts more talented individuals. Fermelanta aims to create a new sustainable industry by replacing traditional production methods with a paradigm shift towards bio-industry. The long-term goal is to develop synthetic organisms capable of producing a wide range of compounds at a low cost.

The financing round involved investors including venture capital firms and strategic partners who contribute not only capital but also expertise in scaling operations and market expansion. The round was led by Universal Materials Incubator Co and Beyond Next Ventures, with additional investment from Angel Bridge and others.

Fermelanta is also planning to work with contract development and manufacturing organizations (CDMOs) to scale up multiple product pipelines. Since the seed round in 2023, the company has increased its development pipelines significantly. The construction of a pilot plant equipped with a 3,000-liter fermentation tank is underway and scheduled to be completed in May 2026.

Despite the challenges, Fermelanta believes its microbial approach is reaching a practical level that is better than plant cells in many cases for producing complex plant metabolites. The company's mission is to lead the bio-industry revolution, making production more sustainable and cost-effective.

Engineering microbes to produce complex plant metabolites becomes a $13.6 million venture for Fermelanta