Arborea, an Anglo-Portuguese company pioneering in the development of multi-functional proteins and nutritious ingredients through a groundbreaking microalgae production system, has successfully secured a €5 million funding round. The round was led by Indico Capital Partners with the support of Banco Português de Fomento (BPF). The investment will fund the preparation of Arborea’s first facility for commercial-scale protein production, utilizing its cutting-edge Biosolar Leaf™ technology. This revolutionary approach enables the creation of high-value, nutrient-rich food products with a carbon-negative footprint, offering a much-needed sustainable solution to the global food supply challenge and climate change mitigation.
One of the main advantages of the Biosolar Leaf™ system is its ability to cultivate any of the 50,000 species of photosynthetic microorganisms (such as marine microalgae) and other microscopic plants cost-effectively and in a carbon-negative manner, without the need for agricultural land or agriculture-deriving feedstock. This not only reduces pressure on arable land but also allows cultivation to take place on diverse settings, including in urban surfaces. Additionally, by capturing CO2 and using sunlight as an unlimited raw feedstock, the system effectively contributes to mitigating climate change, while releasing oxygen during the photosynthesis process.
Through this approach, Arborea is leading the way in creating innovative solutions for the food industry, offering natural and sustainable products such as net-zero nutrititive proteins and other highly functional ingredients. These ingredients hold great potential to improve global nutrition, addressing the needs of a growing population without increasing pressure on the environment. Furthermore, the Biosolar Leaf™ technology can transform food production systems by enabling lands currently used for agriculture to be returned to nature.
Julian Melchiorri, Founder and CEO at Arborea states: “This funding marks a pivotal step in our mission to revolutionize food production through our Biosolar Leaf™ technology. By sustainably and carbon-negatively producing multifunctional protein—clean in taste, color, and adaptable to diverse food applications—we are tackling two of the world’s most pressing challenges: food security and climate change. We are proud to partner with Indico Capital Partners and Banco Português de Fomento to scale innovative, nature-positive solutions that will transform the future of food and restore balance to our planet.”
Stephan de Moraes, Managing General Partner at Indico Capital Partners, states: “We believe that the investment in Arborea will have a transformative impact on the food industry, particularly in replacing animal protein. The Biosolar Leaf™ cultivation system from microalgae enables the production of a higher quantity of protein compared to any other food production method, including agriculture and animal production. This investment will be crucial in consolidating Arborea’s position as a leader in creating innovative solutions for a more sustainable and resilient future.”
Ana Carvalho, CEO of BPF, highlights: “The approval of this investment in Arborea Biofoods reflects the Deal-by-Deal Program’s commitment to innovation and sustainability. Arborea combines ecological practices with advanced technology, creating food solutions that meet consumer demands while also actively contributing to reducing environmental impact. This investment will enable the company to grow and continue to innovate in the agri-food sector, generating sustainable value with a positive impact on society and the environment.”
About Arborea
Arborea supplies net-zero protein and other highly functional ingredients to the food industry, allowing customers to enjoy healthy and nutritious food.
Through its cutting-edge Biosolar Leaf™ technology, Arborea offers a carbon-negative, soil-free and cost-effective method to cultivate photosynthetic microorganisms, unlocking the production of numerous bioactive compounds, proteins and other functional ingredients. Arborea is committed to addressing global challenges such as food security and environmental sustainability by harnessing the vast, untapped potential of microscopic plants. The company’s mission is to drive innovation in sustainable food systems and contribute to a more sustainable and resilient future. For more information, visit its website.
About Indico Capital Partners
Indico Capital Partners is a leading independent Venture Capital fund manager based in Portugal, investing in Southern European-related global and sustainable technology companies. Indico funds invest in deep tech, software as a service, marketplaces, artificial intelligence, the Internet of Things, fintech, cybersecurity, web3 and ocean-related companies. Indico’s range of investments goes, mostly, from Pre-Seed to Series B (100k and 10M euros) in Portuguese, Spanish and Italian-related startups. Indico is often the first investor in a startup and, given the teams’ backgrounds, works very closely with portfolio companies. Since 2019, Indico has invested 92 million euros in 49 companies, which have raised more than 2 billion euros from global investors. For more information, visit its website.
About Banco Português de Fomento
Banco Português de Fomento (BPF) aims to support Portugal’s economic and social development by creating and providing innovative and competitive solutions tailored to the needs and challenges of the business ecosystem. BPF enhances entrepreneurial capacity, investment, job creation, and promotes the country’s economic, social, and territorial sustainability and cohesion. It is the first and only national Implementing Partner of the European InvestEU program, certified by the European Commission.
With a unique strategic position in Portugal and extensive experience in delivering financial instruments to support the economy, BPF mobilizes over €3.6 billion to promote investments in three of the four strategic windows of InvestEU: Sustainable Infrastructure, Financing for SMEs, and Social Investment and Skills. Additionally, it plays a crucial role in implementing the national Recovery and Resilience Plan (PRR), structuring or distributing equity and quasi-equity solutions with a total of €1.425 billion, including the Capitalization and Resilience Fund (€1.3 billion) and the Capitalization Fund for Azorean Companies (€125 million). For more information, visit: its website.
About Programa de Coinvestimento Deal-by-Deal
Launched through the Capitalization and Resilience Fund (FdCR) and created within the context of the national Recovery and Resilience Plan (PRR), Programa de Coinvestimento Deal-by-Deal is a direct investment initiative managed by Banco Português de Fomento. The program aims to promote investment in companies, primarily in the early stages (pre-seed, seed, start-up, later stage venture – Series A, B, and C, or scale-up), in co-investment with private investors. The main objectives of the program are: to foster the creation of new companies and/or business capitalization, promote market entry and the growth/expansion of viable companies, strengthen the solvency of companies, address the issue of undercapitalization in the Portuguese business sector, fill the market gap in terms of access to financial instruments and capital for businesses, support business consolidation, and promote the financial resilience of the Portuguese economy, equipping it with the tools to meet the challenges of the European and national priorities of the dual climate and digital transition.
