Aussie precision fermentation start-up secures funding

Cauldron has revealed plans to build Asia–Pacific’s largest network of precision fermentation facilities using a hyper-fermentation platform that will unlock the production of new forms of food, feed and fibre, and unlock a $700 billion global industry opportunity.

The company has raised AU$10.5 million from local and global investors to expand its existing pilot plant and building a national production network and team of experts. Cauldron’s funding round is one of Australia’s largest seek rounds in a female-founded startup, led by Main Sequence, the deep tech venture capital firm founded by CSIRO, and Horizons Ventures.

With the combination of investors and a strong team, Cauldron has the resources and experience needed to scale initial production facilities and prove the feasibility of other hubs around Australia.

Michele Stansfield, Cauldron CEO and founder, said the company’s fermaculture platform supercharges the fermentation process and unlocks the evolution of food production.

The platform is a breakthrough for the industry, helping precision fermentation companies scale and commercialise products faster and at a lower risk. By leveraging a unique continuous fermentation process, Cauldron’s platform reduces costs and increases efficiency when compared to conventional methods.

Fermentation is a process that takes months or years to perfect. Precision fermentation hypercharges that process and creates optimal conditions for microorganisms and bacteria to create new proteins, fats, fuels and more.

The company has also recruited David Kestenbaum, former General Partner at ZX Ventures, as a co-founder and CFO of Cauldron. In his previous role, David led all of ZX’s investments in biotech and alternative protein.

Precision fermentation has been used to create many of the vitamins and enzymes used in food products and replaced the need to harvest pig pancreases to manufacture life-saving medicines like insulin. CSIRO forecasts the industry to be worth $700 billion by 2040; however, many companies in this space have not been able to manufacture at commercial scale due to the time and capital investment required.

“If Australia doesn’t tackle this opportunity, others will. Precision fermentation is already a crucial part of medicines like insulin and many animal feeds but is often done at smaller scale and overseas. Cauldron will serve as a regional powerhouse for production to ensure Australia plays a part in the future of agriculture and other industries,” said Main Sequence Partner Phil Morle.

Loam Bio is using Cauldron’s network to accelerate the production of the microbial technology needed to capture carbon and store it long-term. ULUU is also working with Cauldron to scale up production to help get its first products to market faster and replace plastics across a variety of uses.

Cauldron will expand its existing facility in Orange, New South Wales, and build a network of precision fermentation facilities around regional Australia that tap into the country’s agricultural know-how and feedstock while diversifying and creating new local jobs.

Funding for Cauldron to conduct a feasibility study of bringing a Future Foods Biohub to Northern Queensland was announced by the Queensland Government in January.

Chris Liu of Horizons Ventures said, “We believe Australia has the unique advantages and natural resources to become a world leader in the age of bio-based manufacturing. Cauldron’s hyper-fermentation platform provides a supercharger in the quest for scalable precision fermentation without sacrificing cost and efficiency, particularly due to its easy access to abundant local feedstock supply alongside a carbon-neutral production process.”