Bactolife Targets Gut Health Market with $35M Funding for Binding Proteins

Danish biotech startup Bactolife has raised €30M ($35M) to launch its gut-health-boosting binding proteins in the US and kickstart a human study programme.

Bactolife, a startup championing a new category of functional gut health ingredients with binding proteins, has closed a Series B round to enter the US wellness market.

The €30M ($30M) financing was led by Cross Border Impact Ventures and Danish state fund EIFO, with further participation from existing investors Novo Holdings and Athos.

Binding proteins are a new class of food and dietary ingredients inspired by the IgG fragments found in immunoglobulins in the milk of camelids (a family of mammals including camels, alpacas and llamas). Bactolife uses precision fermentation to engineer microbes to produce and scale these proteins, which are known to support gut health in humans and animals.

The firm’s first binding protein products will target the human health market in the US, set to be launched under its Helm ingredient brand this year.

“Today’s successful close of our Series B round sets the stage for exciting years ahead as we prepare to launch our innovative products in 2026,” said Bactolife CEO Sebastian Søderberg. “This funding will enable us to clinically validate, scale, and commercialise our Binding Proteins, taking Bactolife’s solutions to a broad audience.”

How binding proteins boost gut health

The origin of binding proteins dates back to the early 90s, when scientists discovered that immunoglobulins from camelids have a small and simple structure with a targeted binding activity.

Fast-forward to this decade, and new research uncovered how binding proteins can neutralise undesired metabolites and enhance gut resilience. Each unique binding protein binds to select unhealthy metabolites (which are harmful toxins), enabling them to pass safely through the GI tract without disrupting the gut microbiome.

Unlike antibiotics, which eliminate bacteria in the gut, binding proteins don’t kill the microbes. Nor do they penetrate the gut barrier or activate the immune system. Instead, they have a fast onset of action and are effective at low daily intake, with the impact observable shortly after ingestion.

These proteins, which can be used as ingredients in food, feed and dietary supplements, aim to prevent and reduce gastrointestinal infections in humans and animals.

Bactolife relies on precision fermentation, which involves inserting specific DNA into microbes to teach them to express the desired molecules when fermented, to produce its binding proteins. The technology enables the firm to maintain a stable and affordable supply of the ingredients.

“Bactolife has consistently demonstrated a strong commitment to advancing its novel precision biotechnology platform for establishing a healthy gut flora,” said Sophia Heyde, VP of Planetary Health Investments at Novo Holdings. “We are excited that this funding round will take the company through the commercialisation of its first products, delivering meaningful benefits for both human and animal health.”

Low- and middle-income countries a key priority for Bactolife

Gut health has taken centre stage in food discourse over the last couple of years, amplified by the rise of GLP-1 drugs like Ozempic and Wegovy, as well as the TikTok-led fibremaxing trend. In fact, 37% of Americans cite gut health as one of their top wellness goals for 2026.

Bactolife is looking to capitalise on this movement with its binding proteins, and will use the new funds to execute its human study programme across the US, Asia, and low- and middle-income countries. It also plans to scale up its manufacturing and supply operations, with a focus on functional food and drinks, infant formula, dietary supplements, and feed additives.

The US is its initial market, but the startup will then turn its attention to the EU and Asia. Additionally, it plans to make binding proteins available and accessible to women and children in low- and middle-income nations.

“Bactolife’s Binding Proteins have the potential to strengthen gut resilience for mothers and children in low- and middle-income countries by providing a scalable, food-grade solution that can be integrated into everyday nutrition,” said Donna Parr, managing partner at Cross Border Impact Ventures.

“At the same time, we are excited about the significant growth opportunity across North America, Europe, and Asia, where the market opportunity is massive,” she added.

“This investment reflects our conviction that evidence-based technologies can reach massive high-growth markets, inclusive of people who need them most, and we look forward to partnering with Bactolife to accelerate clinical validation, scale manufacturing, and expand equitable access globally.”