Michroma, a precision fermentation ingredients maker, has raised $6.4 million in a seed round to accelerate the commercialization of its natural red coloring for food and beverage. Michroma aims to replace petrochemical-based red coloring ingredients with its temperature resistant and stable Red+ ingredient. The company uses biotechnology and precision fermentation, including CRISPR gene editing, to create a natural red color that can be used in various food and cosmetic items. The investors in Michroma’s seed round, such as Supply Change Capital and 301 Inc, are well positioned to support the company’s growth in the food tech industry. Michroma plans to replace artificial colors in the next few years by submitting regulatory petitions to the FDA and European Food Safety Authority.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Michroma raises $6.4M for natural red coloring | Replacing petrochemical-based red coloring with natural ingredient | Increased adoption of natural food colorings | Consumer demand for cleaner label solutions |
| Precision fermentation used to create natural red color | Shift from artificial to natural food colorings | More companies using precision fermentation for natural ingredients | Desire for cleaner label solutions |
| Investors well placed to help Michroma grow | Increased support and development opportunities | Expanded distribution and adoption of Michroma’s colors | Investor expertise and connections |
| Global natural food color market expected to double in value | Growing market for natural food color options | Increased demand for stable and affordable natural food colors | Consumer preference for cleaner label ingredients |
| Michroma aims to replace artificial colors in the next several years | Transition from artificial to natural food colors | Reduced use of artificial colors in food products | Concerns about artificial colors and health effects |
| Michroma plans to submit regulatory petitions for approval | Regulatory process for natural food colorings | Michroma’s Red+ ingredient gaining regulatory approval | Compliance with food safety regulations |