Europe’s venture capital shift accelerates towards bio-based industries for sustainability

In the shifting landscape of investment, a significant transformation is underway as venture capital firms in major European cities pivot their focus from software startups to bioscience ventures geared towards industrial sustainability. This trend is epitomised by the recent closure of the Forbion BioEconomy Fund I, a specialised venture capital fund dedicated to scaling biological technologies that promote planetary health. The fund has successfully closed at €200 million, surpassing its initial target of €150 million, thereby positioning itself among the largest European funds exclusively devoted to the bioeconomy.

Forbion, a globally recognised venture capital firm rooted in Europe with offices in Naarden, Munich, and Boston, has historically concentrated on biotechnology for human health. Currently managing approximately €5 billion across its portfolio, the firm has been involved in over 130 projects, many of which have yielded approved therapies and successful exits. With the launch of its BioEconomy Fund I in 2024, Forbion is extending its expertise to industries marked by high environmental footprints, integrating biotechnology to replace pollutant-heavy processes with sustainable alternatives.

The fund has attracted a diverse group of influential institutional investors from Europe and North America, including KfW Capital, Novo Holdings, Rentenbank, ABN AMRO Bank, Aurae Impact, and EIFO, all known for their focus on impact investing. This level of backing highlights a growing migration of venture capital from the digital realm towards tangible science-based solutions that marry profitability with environmental impact.

Crucially, the fund targets companies that have already demonstrated proof of concept, are in Series A or B funding stages, and offer business-to-business products with price parity or better compared to traditional methods. This approach stresses large-scale integration within existing value chains rather than niche ecological products, ensuring economic competitiveness alongside environmental gains.

The opportunities in bioeconomy sectors are substantial. According to reports such as McKinsey’s The Bio Revolution, emerging markets for biotechnological alternatives, including biodegradable packaging, alternative proteins, bio-fertilisers, and recyclable textiles, could reach several trillion euros in the next decade. Forbion’s fund is already deploying capital in companies that embody this shift.

For instance, eeden, a German startup funded through an €18 million Series A round led by Forbion, is pioneering textile recycling technology based on chemical de-polymerisation. Unlike traditional methods that degrade fiber quality, eeden’s green chemistry processes regenerate virgin-quality fibers from used textiles, addressing a critical inefficiency in the fashion industry while reducing environmental impact.

In mining, Genomines employs plant biotechnology to extract valuable metals from contaminated soils, turning environmental liabilities into economic assets. This represents a profound rethinking of extraction industries by merging bio-remediation with resource recovery.

In agriculture, UK-based SOLASTA Bio, supported by a $14 million Series A round led by Forbion, is developing innovative peptide-based bioinsecticides that aim to protect crops without the toxic residues linked to conventional pesticides. Their products are designed to preserve biodiversity, including essential pollinators, aligning with regenerative agriculture goals.

The fund also backs Novameat, whose 3D-printed structured plant-based meats replicate traditional cuts of animal protein. This technology contributes directly to reducing methane emissions and environmental harm attributed to industrial livestock farming.

Furthermore, PACT is creating high-performance, collagen-based biomaterials for use in textiles and beyond, offering durability and efficiency with a significantly smaller ecological footprint.

Europe’s strategic investment in bio-based industrial innovation contrasts with regulatory- or subsidy-driven models seen in other regions, highlighting a market-driven approach to sustainability. The Forbion BioEconomy Fund I exemplifies this by financing scalable, cost-competitive biotech innovations that redefine biotechnological applications beyond healthcare, positioning Europe as a leader in the emerging bioeconomy ecosystem.

This development marks a pivotal moment in the transition to a sustainable industrial future, where biology and chemistry are harnessed to deliver both shareholder value and planetary health impact at scale. The firm’s commitment underscores a broader realignment in venture capital, recognising that addressing climate and resource challenges requires robust, evidence-based technologies backed by significant financial resources and technical expertise.