- MicroLub, a startup originating from the University of Leeds, raised $10 million in a funding round led by Northern Gritstone.
- The protein-water scaffolds used by the company can reduce both the amount of fat and the number of calories in food by up to 75 per cent without affecting taste.
- Now that more people are looking for foods that are high in protein and low in calories, funding is being provided, a development encouraged by the popularity of GLP-1 medications.
MicroLub‘s fat substitute is mostly water; to give it the smooth mouthfeel of butter, oil, or full-fat cheese, the company coats small protein structures with polysaccharides. The method works by replicating the texture rather than altering the fat.
Northern Gritstone put up $10 million to support this technique.
“For too long, consumers have had to choose between food products that taste great but are unhealthy, and those that are nutritious but compromise on the eating experience. With MicroLub’s technology, that’s no longer the case — they can now literally have their cake and eat it! Our technology enables manufacturers to reduce fat, increase protein and simplify ingredient lists while delivering the indulgent mouthfeel and texture consumers expect,” said David Peters, MicroLub’s chief executive.
The key thing is that food manufacturers can obtain the benefits of fat while using far less of it.
The market seems promising, as GLP-1 weight-loss drugs are prompting millions of people to opt for higher-protein, lower-calorie diets, and, as a result, food companies are altering their recipes to maintain taste. The World Obesity Federation states that obesity could cost the world $4.3 trillion each year, and Dealroom estimates that the reduced-fat dairy and plant-based market is worth over $120 billion in Europe, the US and the UK, which are the areas MicroLub mainly focuses on.
An Oatly vet and a Nestlé-trained scientist
MicroLub was established in 2023 to bring to market the technology developed by Professor Anwesha Sarkar at the University of Leeds. Sarkar, who is from India, had spent four years at Nestlé’s research centre in Lausanne before returning to academia; a grant from the European Research Council on oral lubrication led to the creation of the fat-mimicking scaffold.
David Peters was appointed CEO after gaining experience leading Oatly’s UK operations. As a result, MicroLub now has both scientific and business expertise.
The company is located at Nexus, which is the University of Leeds’ innovation centre.
Water is the differentiator
MicroLub is not the only company working on fat replacement, but most others are aiming to create better fats.
Australia’s Nourish Ingredients and Sweden’s Melt&Marble, having raised $8.5 million and about $10 million, respectively, in the last year, employ precision fermentation to produce new lipids, while California’s Shiru, which has raised $36 million to date, shapes plant oils into solid fat substitutes.
MicroLub differs by removing most of the fat and instead using water and protein to imitate the taste and texture. This approach might make it easier to obtain regulatory approval and could reduce ingredient costs when compared to using newly fermented fats.
However, food manufacturers would have to alter their processes, which could prove challenging.
A repeat-investor round in a hot but crowded field
All the investors who took part in this funding round had previously invested in MicroLub. Northern Gritstone headed the round, with NPIF II, PXN Equity Finance, and some of the other earlier investors also taking part. In this round, MicroLub has raised a total of about $14.5 million, including the £3.5 million round led by Northern Gritstone in October 2024.
“MicroLub is addressing one of the food industry’s biggest scientific and commercial challenges. Its proprietary technology enables manufacturers to reformulate products in response to changing consumer expectations without compromising the sensory experience that drives purchasing decisions,” added Duncan Johnson, Northern Gritstone’s chief executive, whose portfolio also includes University of Leeds spinout IVFmicro and cybersecurity startup Cytix.
The additional funding will allow MicroLub to employ more people, enter the US and Asia markets, and convert its existing trials with major food companies into paid agreements.
Although GLP-1 drugs have increased interest in food technology, it remains unclear whether large food companies will adopt MicroLub’s microgel technology before other new fats become available.
