Yeastup secures CHF8.9 million in Series A funding to launch industrial-scale production site

Switzerland-based Yeastup AG has raised CHF8.9 million in Series A funding to scale its patented process of extracting functional ingredients from brewers’ spent yeast. The funding will support the establishment of a new large-scale production facility in Switzerland, capable of upcycling over 20,000 tons of spent yeast annually. This milestone marks a significant step for the company as it aims to meet growing market demand for sustainable, yeast-based proteins and fibers.

Yeastup’s innovative process isolates protein, beta-glucan, and mannoprotein from spent yeast in a single industrial process. These ingredients offer applications in various sectors, including food, nutraceuticals, and cosmetics. The facility will be developed by repurposing a former dairy site, reducing capital expenditures by utilizing existing infrastructure.

The new facility represents a strategic collaboration with Cremo, Switzerland's second-largest dairy producer. Ralph Perroud, CEO of Cremo, expressed enthusiasm about the partnership. “We are pleased to collaborate with Yeastup, whose innovative process not only brings new life to our facility but also demonstrates how existing dairy infrastructure can be successfully utilized for the alternative protein sector. We see this as an opportunity to reposition ourselves and explore innovative pathways together with Yeastup.”

At the heart of Yeastup’s innovation is Yeastin, a vegan protein with a Protein Digestibility-Corrected Amino Acid Score (PDCAAS) of 1, making it nutritionally comparable to egg protein. This protein is notable for its good solubility and neutral taste, distinguishing it from many other plant-based proteins on the market. Additionally, the production of Yeastin generates 74% less CO₂ compared to pea protein, highlighting its environmental benefits.

Yeastup also produces Upfiber, a fiber product composed of beta-glucans and mannoproteins. These fibers offer functional properties such as gelling and water-binding capabilities, making them suitable for dietary supplements and functional food products.

The newly funded facility will play a crucial role in Yeastup’s plans to scale production and meet increasing market demand. It will also serve as a reference site for future global expansion. Strategic partnerships in supply and engineering are expected to ensure cost competitiveness and operational efficiency.

Dr Martin Hahn, Head of Global Emerging Platforms and Technologies at Gelita AG, commented on the potential of Yeastup’s approach. “Yeast-based ingredients have the potential to transform how alternative products are developed and produced. Yeastup provides proteins and fibers, allowing customers to create tailored solutions and optimize ingredient lists and functionalities. We were particularly impressed by their knowledgeable and motivated team.”

The Series A round was backed by several notable investors, including Beyond Impact, Gentian Investments, Newtree Impact, and Angel House, along with various family offices in Switzerland and abroad. Benoît de Bruyn, Managing Director of Newtree Impact and a new board member of Yeastup, explained the investment decision:

“We invested in Yeastup because their upscaling process results in significantly better products and economics compared to others in this space.”

Yeastup has received recognition for its innovation, winning the SEIF Award and the TechTour in 2023. In addition to the CHF8.9 million raised, the company has secured CHF2.45 million in grants from Innosuisse and regional development funds from the canton of Bern.

Mariana Christen Jakob, former Managing Director of the SEIF organization, highlighted Yeastup’s achievements. “Yeastup outperformed the competition at the SEIF Award because the management team is highly experienced and has demonstrated the ability to create a profitable business model while contributing to sustainability.”

Daniel Gnos, CEO of Yeastup, reflected on the progress and future potential. “As a former food technologist in brewing and startup entrepreneur in the functional food space, it’s incredibly rewarding to see how our groundbreaking innovation has convinced consumers, partners, and investors. There are so many compelling reasons why this makes sense for all stakeholders. This support motivates me and the entire team to go the extra mile for Yeastup.”