Verley Secures €32 Million Funding to Expand Whey Protein Production via Precision Fermentation

– Verley, a pioneering company specializing in the creation of beta-lactoglobulin (BLG) through precision fermentation, has successfully raised €32 million ($38 million). This funding will support its entry into the US market later this year.

– The funding round comprises €25 million ($30 million) in equity investments from notable investors such as Alven, Blast, Sofinnova, Captech Santé, Sparkfood, and Founders Future. Additionally, €7 million ($8 million) has been secured as non-dilutive funding from the French national investment bank Bpifrance.

Demand for Protein Fuels Innovation: Formulators Seek Alternatives to Conventional Whey

As the demand for protein surges in the US—driven by increased uptake of GLP-1 drugs and updated dietary guidelines calling for a near-doubling of protein intake—formulators face unique challenges in sourcing high-quality protein powders, according to Verley cofounder Stéphane Mac Millan.

While plant proteins may pose sensory and technical hurdles, whey protein isolate (WPI) faces a significant shortage, leading to sharply rising prices. In this context, dairy proteins produced via precision fermentation, such as beta-lactoglobulin (BLG), present a promising market opportunity. They enable companies to incorporate substantial protein into beverages, yogurts, and other products without sacrificing taste or texture.

“Packing 25 grams of regular WPI into a protein shot won’t work due to insufficient solubility,” Mac Millan explains. “Likewise, pushing beyond 9% protein in yogurt can lead to a sandy texture. With our microparticulated BLG, we can achieve a 15-16% inclusion rate.” He adds that their product complements, rather than competes with, WPI, unlocking new opportunities for formulators.

Innovative Product Offerings from Verley

Founded in late 2021 as Bon Vivant, Verley now offers food formulators three innovative products:

• Native 100 BLG: Lactose-free and rapidly absorbed, ideal for sports nutrition and clear beverages.
• FermWhey MicroStab: A micro-particulated BLG providing exceptional heat and acid stability for UHT drinks and fresh dairy products.
• FermWhey Gel: Offers gelling properties that can replace stabilizers, gums, carrageenan, and modified starches for cleaner labels.

Regulatory Compliance and Market Scaling

With the newly acquired funds, Verley is focused on scaling production and obtaining necessary regulatory approvals. The company has received a GRAS ‘no questions’ letter from the FDA and is preparing submissions for the EU and Middle East markets.

“Currently, we are producing at the 50 cubic meter (50,000-L) stage but need to scale up to over 150 cubic meters,” Mac Millan notes. “We are in the tech transfer phase, finalizing scale-up with co-manufacturers. If everything proceeds smoothly, we aim to begin delivering commercial quantities to US clients by Q3 or Q4 of this year.”

Increasing Awareness and Acceptance of Beta-Lactoglobulin

Food marketers are increasingly recognizing the potential of BLG, with many now opting to label it explicitly on packaging. “When we first started, awareness of BLG was minimal,” says Mac Millan. “Now, consumers are more educated about its benefits for muscle recovery and its enhanced leucine content versus WPI.”

Capital Raising in a Maturing Foodtech Landscape

Despite the current challenges in raising capital, investors are demonstrating a growing understanding of the technology and its potential. “If we successfully commercialize this year, we will have accomplished it in just over four years, which is impressive,” Mac Millan concludes. “The focus has shifted from exuberance to a realistic evaluation of technological readiness, regulatory compliance, and scalability.”