Kern Tec Raises €12M in Series A Funding to Upcycle Food Waste

Key Takeaways:

1. Kern Tec, an Austrian foodtech startup, has secured €12 million in Series A funding.
2. The funding round was led by Telos Impact and included PeakBridge Growth 2 fund and the European Innovation Council (EIC) Fund.
3. The company aims to scale up the production and commercialization of sustainable ingredients derived from upcycled stone fruit pits.
4. By reducing waste, Kern Tec’s technology contributes to a circular and more resilient food system.
5. The company has already signed purchase orders worth millions of euros for its sustainable ingredients.

Funding and Objectives:

Based in Herzogenburg, Austria, Kern Tec announced a €12 million Series A funding round led by Telos Impact, with participation from PeakBridge Growth 2 fund and the European Innovation Council (EIC) Fund. The company also secured significant local and international grants. The funds will be used to scale up the production and commercialization of sustainable ingredients for plant-based dairy and confectionery products.

Environmental Impact:

Kern Tec focuses on upcycling stone fruit pits like apricots, plums, and cherries into food-safe and sustainable ingredients. These pits usually end up in landfills, with 500,000 metric tons discarded each year in Europe alone. Kern Tec aims to contribute to a more circular and resilient food system by processing these pits.

Technology and Market:

The company employs proprietary processing steps to extract valuable oils and proteins from the seeds within the stone fruit pits. These ingredients are then used to create alternative dairy products like plant-based milk, yogurt, and cheese. Kern Tec has already signed purchase orders worth millions of euros for its ingredients, indicating strong market demand.

Strategic Partnerships:

Investment Manager at Telos Impact, Guillaume Boury, expressed excitement about leveraging their network and expertise to support Kern Tec’s growth strategy. Erich Sieber, Co-Founder and General Partner at PeakBridge, also emphasized Kern Tec’s transformative role in the food industry.

Future Prospects:

With the new funding, the company is poised for global scaling and aims to unlock further growth in the plant-based dairy industry. The company has already processed over 2,500 tons of fruit pits in its Austrian production facility. It is entering a growth stage to scale its whole value chain and global customer base.

Image provided by Kern Tec