ÄIO, an Estonian biotechnology company, has raised €6.1 million investment from venture capital firms Voima Ventures, 2C Ventures, SmartCap, and Nordic Foodtech VC. The capital will help establish a trial facility in Estonia for generating sustainable oils and fats from wood and agriculture leftovers.

About ÄIO

  • ÄIO Tech OÜ, founded in 2022 by TalTech bioengineers Petri-Jaan Lahtvee and Nemailla Bonturi, is an international team of 16 people working from Estonia, Brazil, Poland, Armenia, and Italy.

  • The startup has developed a unique method to reduce the food industry's reliance on harmful animal fats, palm oil, and vegetable oils. The process uses specialised yeast to transform by-products from wood and agricultural processes into food-grade fats and oils.

  • With over 120 partners, the company is developing innovative products using industrial residues or testing its oils and fats.

“For a scientist, the greatest achievement is when years of research result in a real product that can change the entire food industry and consumer experience. We will continue to develop the company and its products in collaboration with partners, investors and the food industry. We will also continue working with TalTech to train the next generation of bioengineers,” Nemailla Bonturi, co-founder at ÄIO, stated. 

Meet the changemakers: ÄIO | NewAgVentures. CEE Food Innovators Meetup | 21.03.2024

Investment details

The investors this round included Voima Ventures, a Nordic early-stage investor, 2C Ventures, a cleantech-focused VC firm, SmartCap, a small fund management company in Estonia, and Nordic Foodtech VC, a Helsinki-based VC fund focused on foodtech industry.

Before the €6 million investment, ÄIO managed to get several headlines:

  • It was selected for the European Joint Undertaking on Circular Bioeconomy (CBE-JU) project, with a €7.5 million budget. The company wanted to develop fat-based materials and cosmetic products alongside other European companies and research institutions. 

  • ÄIO also established an innovation centre called "Good Fat Wörks" to develop alternative fats through fermentation and pilot products.

  • The company also received a €1.8 million grant from EISA last year to develop a platform for semi-automated strain technology in collaboration with the Center of Food and Fermentation Technologies.

  • And in February 2023, the company raised €1 million in fresh funding from Nordic Foodtech VC, EAS, and several other partners.

With fresh funds, ÄIO plans to build a demo plant in Estonia, producing encapsulated oil, red oil, and butter fats in tens of tons. The plant is expected to be completed by 2026, likely near a major industrial company. Raw materials will be sourced from Estonian and Finnish food industry companies, and Fibenol's hydrolysates will be valorized.