Biotechnology startup ÄIO lands VC investment for oils and fats from wood and agricultural residues

In Estonia, biotechnology startup ÄIO has raised €6.1 million through venture capital funds Voima Ventures, 2C Ventures, SmartCap and Nordic Foodtech VC. The funds will be used to build a demo plant in Estonia to produce environmentally friendly oils and fats from wood and agricultural residues, offering an alternative to the widely used oils in the food industry. 

Founded in 2022 as a spin-off from TalTech (Tallinn University of Technology), ÄIO has developed a unique method that enables the food industry to reduce its reliance on environmentally harmful animal fats, palm oil and other vegetable oils. ÄIO’s solution uses specialized yeast to transform by-products from wood and agricultural processes, such as sugars extracted from sawdust, into food-grade fats and oils. This process is significantly faster and much less taxing on the environment.