Differential Bio secures €2 million to launch AI-driven platform for scaling biomanufacturing

Differential Bio, an AI-powered biotech startup based in Munich, has emerged from stealth with €2 million (US$2.2 million) in pre-seed funding to develop and scale its Virtual Scale-up Platform. The technology brings together microbiology, robotics, and artificial intelligence to accelerate biomanufacturing processes, with the goal of reducing time-to-market and production costs for sustainable bio-based products.

The round was led by Ananda Impact Ventures and ReGen Ventures, with participation from Carbon13, Climate Capital, Better Ventures, CDTM Ventures, and several angel investors.

“Biomanufacturing holds the key to a regenerative future, but scaling these processes remains a major bottleneck for the industry,” said Christian Spier, CEO and Co-founder of Differential Bio. “We are here to change that, empowering biomanufacturers with cutting-edge tools to slash development timelines and costs, bringing bio-based products to market faster than ever before.”

Biomanufacturing, which uses microbial systems to produce food ingredients, pharmaceuticals, and other industrial goods, is increasingly seen as a sustainable alternative to traditional supply chains. However, the transition from laboratory to industrial scale remains slow and expensive – typically taking 5 to 10 years and requiring between US$100 million and US$500 million in investment.

Differential Bio aims to reduce these barriers by offering a platform that integrates miniaturized fermentation, automated lab workflows, and predictive AI models. By simulating and optimizing bioprocesses virtually, the system enables faster iteration cycles while minimizing the need for costly physical testing.

In one recent case study, the startup helped a probiotics client shift from an animal-based to a plant-based growth medium – without sacrificing performance. The switch led to a fourfold increase in biomass yield and a 16% reduction in production costs. These findings were presented at a probiotics conference in Copenhagen earlier this year and attracted strong interest from industry players.

“This project showcased the platform’s ability to handle multi-objective optimizations,” said Dong Zhao, Differential Bio’s Chief Scientific Officer. “We proved that sustainable biomanufacturing can enhance performance and cut costs simultaneously – no compromises required.”

Differential Bio’s technology has applications across a wide range of sectors, including food and beverages, cosmetics, chemicals, and textiles. With global biomanufacturing capacity projected to increase significantly over the next two decades, the demand for faster and more efficient scale-up methods is expected to grow.

“The Differential team immediately stood out to us with their exceptional combination of deep technical expertise, innovative scientific approach, and a visionary drive to deliver impactful solutions at scale,” said Bernd Klosterkemper, Partner at Ananda Impact Ventures. “We believe their technology will redefine biomanufacturing by enabling faster, more efficient scaling of bio-based processes.”

“Biomanufacturing is constrained by a scaling crisis,” added Tom McQuillen, Partner at ReGen Ventures. “By leveraging machine learning on extensive phenotypic and bioprocess data, Differential has the potential to redefine biomanufacturing at scale by providing a step function reduction in cost and time to commercialization.”

The founding team combines experience in bioinformatics, AI, and industrial biotechnology. CEO Christian Spier previously scaled companies like Y42 and Dialogue. CTO Martin Patz brings AI expertise from Recogni, and CSO Dong Zhao co-founded fermentation company Nosh.Bio.

With the funding secured, the company is focused on expanding its platform, growing its automated lab operations, and building out its team. It is also actively seeking new partners in sectors such as food, cosmetics, and specialty chemicals.

“Our ultimate goal is to make biomanufacturing as seamless and scalable as modern software development,” said Patz. “This funding brings us closer to that vision, enabling us to deliver tangible value and reusable infrastructure to our clients.”