Cauldron’s Series A cultures $9.5 million boost for eco-friendly fermentation

Precision fermentation startup Cauldron has announced the close of a $9.5 million Series A funding round. This latest injection of capital, led by Horizons Ventures and joined by SOSV and In-Q-Tel (IQT), alongside existing investor Main Sequence, marks a pivotal moment for the company.

This follows a historic $10.5 million seed round just 12 months ago and brings the company’s total funding to date to $20 million at an undisclosed valuation.

Cauldron’s cutting-edge approach to continuous fermentation through its unique bioreactor design and proprietary growth medium, promises to revolutionise large-scale fermentation production. By enhancing efficiency fivefold compared to the current industry standards, Cauldron sets the stage for more sustainable bio-based products to achieve price parity and mainstream adoption.

“Cauldron has proven its precision fermentation at an industrially relevant scale, unlocking a significant decrease — between 30 and 50% — in the cost of goods for our customers vs traditional batch fermentation,” Cauldron CEO and co-founder, Michele Stansfield, said.

“From biofuels and agriculture to cosmetics and chemicals, the opportunities are immense, and with the support of our incredible investors, we’re poised to capitalise on them.”

Cauldron is already providing its precision fermentation services to other Australian startups within the sustainable food and packaging spaces. Its clients include Eden Brew, ULUU and Nourish Ingredients – all of which have had substantial capital raises over the last 18 months.

Since then, the business has added several new clients to its roster, but it has yet to name them.

“We have a number of additional clients, although we are not in the position to name them, we have diversified from food to nutraceuticals and also have a sustainable Aviation Fuel client on board the program,” a spokesperson said to SmartCompany.

Cauldron’s advancements in precision fermentation come at a critical time, with the UN estimating a need to increase global food production by 70% by 2050 to feed a projected population of 10 billion. Cauldron’s technology stands out as a sustainable solution, aiming to boost food production without the need for expanding agricultural land, thereby addressing a key challenge in food security and sustainability.

The funding will aid Cauldron in accommodating faster-than-expected customer growth, developing robust proof cases for its technology, and laying the groundwork for a new 500,000-litre facility.

Cauldron previously spoke to SmartCompany about being interested in building a facility in collaboration with the Queensland government in Mackay. However, hints from the company indicate that perhaps its first facility outside of Orange may be overseas.

“As a global company, we are exploring opportunities across the globe. Understanding the need for vast amounts of infrastructure Cauldron intends to make some announcements regarding our first facility at Syn Bio Beta in May this year,” a spokesperson said.

With a current 25,000-litre facility in Orange, New South Wales, Cauldron is already collaborating with global commercial partners, aiming to establish plants worldwide to deliver hyper-fermentation production for bio-based products.