PFx Biotech, a Porto-based biotechnology startup, has raised €2.5 million in seed funding to advance the production of human milk–inspired proteins using precision fermentation – a sustainable alternative to animal proteins with applications in infant nutrition, elderly care, and sports performance.
According to a company announcement, the round was led by Buenavista Equity Partners (formerly GED Capital), with participation from EIT Food and Beta Capital. In addition to the seed round, the company recently secured a €2.5 million grant from the European Innovation Council (EIC) Accelerator and SMEs Executive Agency (EISMEA), bringing its total backing to €5 million.
Founded in 2022, PFx Biotech uses engineering biology and precision fermentation to create specialty proteins that are structurally and functionally identical to those found in breast milk. The company’s proprietary platform delivers highly functional, non-GMO, allergy-free proteins that are also environmentally sustainable.
PFx Biotech’s milk proteins are designed to offer “optimal nutrition across all life stages,” the company says, citing use cases from infant formula to muscle recovery and elderly nutrition.
Precision fermentation combines traditional fermentation techniques with cutting-edge biotechnology to efficiently produce specific compounds of interest – such as proteins, flavor molecules, vitamins, pigments, or fats.
This approach is recognized for enabling the creation of high-value ingredients without relying on animals or resource-intensive agriculture, making it a more sustainable alternative that reduces greenhouse gas emissions, land use, and water consumption.
By replacing traditional animal-based proteins, PFx Biotech aims to reduce the environmental footprint of global protein production while improving general wellness outcomes.
Scaling sustainable nutrition innovation
The funding will enable PFx Biotech to scale up the pre-industrial production of lactoferrin, build its own bespoke laboratory facilities, and expand its team to support continued innovation and growth.
“This is a defining moment for PFx Biotech,” Ali Osman, Founder and CEO, was quoted as saying by EU-Startups. “We’re proud to be backed by mission-aligned investors to help us unlock the potential of lactoferrin in a more sustainable nutrition model. As we enter this new growth stage, we are actively exploring strategic collaborations across R&D, scale-up, and go-to-market opportunities.”
Bibi Sattar Marques, partner at Buenavista Equity Partners, added, “We believe PFx Biotech is one of the few companies with the scientific depth, technical execution, and visionary leadership required to make precision fermentation commercially viable at scale.”
Riding the precision fermentation wave
The funding comes as the global precision fermentation market is experiencing rapid growth, with its market size valued at $3.20 billion in 2024 and projected to reach $104.13 billion by 2034, reflecting a compound annual growth rate (CAGR) of 46%.
In terms of revenue, the market is expected to grow from $4.58 billion in 2025 to approximately $85.37 billion by 2033. In 2024, Europe led the market, accounting for the largest share at 40.77%.
Boosting Portugal’s biotech position
The investment in PFx Biotech strengthens Portugal’s biotechnology sector within Europe’s growing precision fermentation ecosystem, as the region continues to attract significant investment in alternative protein technologies aimed at creating more sustainable food systems.
Featured image: By Sangharsh Lohakare on Unsplash
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