Standing Ovation secures US$34.2 million to scale precision-fermented casein as Danone and Bel deepen backing

Standing Ovation has raised US$34.2 million to accelerate the commercialization of its precision-fermented casein, as the French company advanced plans to scale a technology designed to turn dairy side streams into high-value protein.

• Standing Ovation secured $34.2 million (US$34.2 million) in Series B funding, including equity and non-dilutive financing, to scale precision-fermented casein production and commercialization

• Danone Ventures joined existing investor Bel Group, strengthening industrial partnerships as the company prepared for USA market entry ahead of Europe and Asia

• The company’s patented process converted whey permeates into casein, targeting cost parity at 2,000 tons of annual production while reducing environmental impact

The Series B round included US$28.5 millio) in equity, led by the Ecotechnologies 2 fund managed by Bpifrance on behalf of the French government, alongside Crédit Mutuel Innovation and a group of existing and new investors. An additional US$5.7 million in non-dilutive financing supported the raise.

The funding followed a previous €16 million round and marked a step forward in Standing Ovation’s efforts to move from development into commercial supply. The company confirmed that the capital would be used primarily to accelerate rollout in North America, before expanding into Europe and Asia from the end of 2027.

Yvan Chardonnens, CEO of Standing Ovation, said the company had deliberately prioritized the USA as its first commercial destination because “the USA is the most strategic first entry point for precision fermentation proteins because it combines regulatory clarity, faster time-to-market, and stronger early-adopter demand compared to Europe.

“In the USA, we can leverage the FDA GRAS framework,” he said. “This allows companies to self-affirm safety with strong scientific backing and engage with the FDA in parallel, rather than waiting for a centralized pre-market approval. By launching in the USA first, we can de-risk the technology, generate revenue earlier, and build a foundation for more complex and slower markets like Europe.”

Rather than investing heavily in its own production infrastructure, the company had opted to scale through partnerships with established fermentation players. Chardonnens said the company partnered with industrial groups such as Ajinomoto to benefit from existing capacity and expertise, allowing it to move faster without the capital burden of building facilities from scratch.

That model also shaped how Standing Ovation approached commercialization. The company confirmed it would focus exclusively on B2B ingredient supply rather than branded consumer products, with early activity centered on supply agreements with manufacturers.

At the core of its technology is the conversion of whey permeates, a low-value by-product of dairy processing, into casein through precision fermentation. The company has protected this process through multiple patent families and described it as a first-of-its-kind approach at industrial scale.

“The casein we produce is exactly the same protein as that produced by the animal,” Chardonnens said. “Whether it is produced from serum or from glucose or sucrose, this does not change the structure or functionality of these proteins in any way.”

This focus on casein set Standing Ovation apart from many other precision fermentation companies, which have concentrated on whey proteins. “Many startups are primarily working on beta-lactoglobulin, a whey protein that makes up only 3g per liter of milk,” he said. “Conversely, casein represents more than 80% of milk protein and is essential for the taste, texture, and nutritional value of all dairy products.”

The company also highlighted its ability to use dairy side streams as a feedstock, turning what is often treated as waste into a valuable input. “The use of by-products offers numerous advantages: reduced costs, improved environmental impact, a diversified sourcing strategy, and the establishment of a circular economy and a win-win situation for both manufacturers and farmers,” Chardonnens said.

Beyond whey permeates, the process can operate with a range of inputs. “Our process is very versatile and can utilize many feedstocks: acidic serums, mild serums, beet molasses, sugar cane molasses,” he said.

Standing Ovation reported that its production process delivered a 74% reduction in greenhouse gas emissions and up to three times less water usage compared to animal-derived casein, based on an ISO-certified life cycle assessment. Chardonnens said these gains were driven by efficiency at both the fermentation and downstream stages. “To reduce our environmental impact, we have a highly efficient and rapid process, along with robust and simple casein purification methods,” he said.

While sustainability remained an important part of the proposition, the company acknowledged that it was not the primary driver of purchasing decisions. “80% of consumers demand sustainability, but less than 20% of these are ready to pay for it,” Chardonnens said. “Perceivable consumer benefits and positive consumer experience are the most important drivers of purchase and more importantly re-purchase at this stage.”

That reality had influenced Standing Ovation’s go-to-market strategy, particularly its focus on functionality and formulation. The company said it was targeting high-protein applications and use cases requiring improved performance with shorter ingredient lists, as well as new product formats enabled by its casein platform.

Early feedback from food manufacturers had been positive. “The feedback is very positive, from a nutritional, functional, and taste perspective,” Chardonnens said.

Strategic partnerships played a central role in this phase. Bel Group, an investor since 2022, was joined in the latest round by Danone Ventures, strengthening ties with two of France’s largest dairy companies. Asked how those relationships were structured, Chardonnens said they spanned multiple roles. “All of the above, including investors.”

These collaborations had also shaped how Standing Ovation approached product development and positioning. “Consumer insights were conducted with large incumbent, developing front and back pack label nomenclature for our ingredients and related claim,” he said. “The longstanding applications experience of our large incumbents has also helped us improve our approach to our selling act overall.”

Despite working closely with major dairy players, the company did not see itself as a disruptor of the existing system. “Totally complementary,” Chardonnens said. “We are not in opposition or replacement to the dairy ecosystem but rather here to complement it.”

Hybrid products were expected to play an important role in bridging that gap. “We will first target hybrid solutions for ease of consumer acceptance and to facilitate consumers’ cognitive gap bridging between animal proteins and plant based proteins,” he said.

The company also pointed to broader structural challenges in the dairy sector, including the risk of declining milk production in parts of Europe, as a driver for alternative protein sources. Its model aimed to increase output from existing resources by extracting additional value from milk streams that are currently underutilized.

“From one liter of milk, you can produce cheeses, yogurts, and fats like butter,” Chardonnens said. “With Standing Ovation, the part of the milk that was previously difficult to utilize becomes a new source of protein obtained through precision fermentation. This new sourcing method significantly increases the capacity to feed populations.”

The approach also tied into a wider push for food system resilience and local sourcing. By relying on existing dairy side streams and regional inputs, the company aimed to reduce dependence on global supply chains while reinforcing domestic production capacity.

Its technology and strategy have been supported by a combination of intellectual property, industrial partnerships, and commercial alliances. Chardonnens said the company’s barriers to entry were built across multiple layers, including patents, production relationships, and strategic backing from major industry players. He added that a broader ecosystem had begun to form around its approach, with leading industrial groups aligning around its technology and roadmap.

As the company scaled, cost remained a central consideration. Standing Ovation said it had developed a clear pathway toward price parity with conventional casein, with its investors placing significant focus on this during due diligence. “Cost parity will be reached from 2000 tons of proteins production,” Chardonnens said.

Looking further ahead, the company expected precision fermentation to evolve alongside existing protein sources rather than replace them. “Plant-based proteins opened the door by shifting consumer behavior, but fermented dairy proteins are positioned to close the gap with conventional dairy,” he said. “As awareness, taste experience, and trust improve, they will for sure move from niche innovation to mainstream acceptance.”

The raise followed a period of steady technical and industrial progress for the company. In October 2025, Standing Ovation and Bel confirmed the first industrial-scale production of precision-fermented casein derived from cheese whey, validating the scalability of its process and its ability to integrate into existing dairy systems. Earlier in the year, the company also partnered with Tetra Pak to optimize downstream processing and support the design of industrial-scale production, building on its collaboration with Ajinomoto to expand fermentation capacity.

With commercialization now underway and industrial partnerships in place across multiple regions, Standing Ovation indicated it was preparing to scale globally. “We work with dairy manufacturers all over the world,” Chardonnens said.