Swedish food-tech start-up Millow has closed a €2 million funding round to support the expanded production capacity of its clean-label protein made from oats and mycelium.

The round was led by entrepreneur and angel investor Magnus Emilson, joined by Vitamin Well co-founder Jan Enhager, who also becomes a strategic advisor to Millow’s CEO Fredrik Öhrn.

Two co-founders of Swedish technology companies with combined exits of more than $2 billion have also joined the round, alongside private investors from the Swedish food sector.

The capital will fund an expansion of the company’s solid-state fermentation manufacturing capacity. The technology turns two core ingredients, Swedish oats and mycelium, into a fungal protein with no binders or additives, catering to demand for clean-label and vegan-friendly protein ingredients in the Nordic foodservice sector.

According to Millow, its process uses three to four litres of water per kg of product, and its carbon footprint has been independently verified by carbon assessment specialist Rise at 0.3kg per CO2e per kg – around 98% lower than Swedish beef.

Alongside the round, the European Patent Office has confirmed that the nine-month opposition period for Millow’s core patent has closed with no oppositions filed. The patent protects Millow’s low-water production method.

Millow said it is in talks with major foodservice operators and distributors in the Nordic region, with international interest also growing. The ingredient is designed to be easily handled in the kitchen like formats chefs already use, providing convenience and easy integration for restaurants.

CEO Öhrn commented: “This round gives us the capacity and the commercial team to serve foodservice customers at the volumes they need. The job now is disciplined commercial execution, and what matters as much as the capital is who it comes from.”

“Jan and Magnus bring experience and a network we would otherwise spend years building. I approach this phase with real humility: the team and the advisers around us matter every bit as much as the technology.”