Australian precision fermentation startup All G has welcomed Xeraya Capital, owned by Malaysia’s state-owned Khazanah Nasional fund, to its list of pre-Series B investors, a month after launching its bovine lactoferrin in the US.
All G, the Sydney-based producer of recombinant dairy and human milk proteins, has secured financial backing from Malaysia’s sovereign wealth fund.
Xeraya Capital, which is owned by the state-owned Khazanah Nasional fund, has added an undisclosed sum to the startup’s pre-Series B round, which was first announced in December.
The convertible note round netted All G $6.6M at the time, and Xeraya has joined on the same terms as the other investors, namely Savencia, Döhler Ventures, Agronomics, ID Capital and Ellerston Capital, the company told Green Queen.
The Australian firm has secured over $36M to date, and is currently fundraising for the Series B round. “It is wonderful to have an investor like Xeraya onboard. The decision to back All G is a powerful endorsement of our science and our mission,” said founder and CEO Jan Pacas.
All G working on several precision-fermented milk proteins
Founded in 2020, All G uses precision fermentation to produce bioidentical bovine and human milk proteins. The tech involves inserting specific DNA into microbes to instruct them to produce desired molecules during fermentation.
All G has already commercialised bovine apo-lactoferrin, which was launched in the US last month for use in applications like functional food and drinks, dietary supplements, and products geared towards active nutrition, gut wellness, healthy ageing, women’s health, and immune support.
Lactoferrin is a glycoprotein found in both bovine colostrum and human milk, known for its iron-regulating abilities. It’s prized for its antiviral, antibacterial, immunity-boosting, and gut-strengthening properties, and is used to treat low iron levels during pregnancy, lower the risk of respiratory tract infections, and enhance metabolism.
Unlike other forms of this whey protein, apo-lactoferrin has very little iron bound to it. When iron saturation is low, empty iron-binding sites can bind excess free iron, helping regulate homeostasis, limit the amount of iron available to harmful bacteria, improve gut health and dietary iron absorption, and promote immune cell activity.
All G’s ingredient, called LFX, contains less than 5% iron saturation, which it achieves during the fermentation process rather than through filtration.
The startup is also working on a human-identical version of apo-lactoferrin, which is present in up to 10 times higher concentration in breast milk. “We will have a self-affirmed GRAS for human lactoferrin before the end of 2026, and we will be in market within six months,” Pacas told Green Queen last month.
“The data we have generated from our scale-up human lactoferrin batches is significantly superior to what is currently on the market,” he added, noting that the ingredient mimics the protein in human breast milk at around 4% iron saturation.
Additionally, All G is developing human beta-casein (which makes up 20-45% of the protein content in breast milk) as part of its infant formula pathway, which it’s working to scale up after being awarded an A$1.1M ($775,000) biosciences grant from the New South Wales government.
Xeraya investment a ‘vote of trust’ amid scale-up efforts
All G is producing single-digit tonnes of LFX per year at a 60,000-litre scale (though its potential capacity can reach tens of tonnes), with a yield that delivers positive unit economics when sold at the current market price of bovine lactoferrin, according to Pacas.
It’s working with a top fermentation contract manufacturer in China to produce its lactoferrin and is also leveraging its relationships with Savencie and Döhler to establish a European production network.
The company already has a green light to use its lactoferrin for personal care sales in China, and is targeting approval for infant formula in the US (which will involve a separate GRAS filing and additional safety data).
It called Xeraya’s investment a “vote of trust” in its mission, one that opens a meaningful pathway into Southeast Asia. “Xeraya’s connections and capabilities are expected to accelerate All G’s access to commercialisation opportunities for our portfolio of recombinant bovine and human milk proteins, in some of the world’s fastest-growing nutrition and infant formula markets,” it said in a LinkedIn post.
Xeraya is Malaysia’s only dedicated life sciences VC and private equity firm, investing globally in breakthroughs shaping the future of human health, with a portfolio that includes LanzaTech, P2 Science, and Pivot Bio.
“We invest in transformative biology with a clear pathway to improving human health, and we’re excited to help All G expand into Southeast Asia and beyond,” said Xeraya Capital CEO Fares Zahir.
Malaysia’s Khazanah Nasional is among a string of government-backed funds that have bet on future food technologies in recent years. Singapore’s Temasek Holdings, for instance, routinely invests in alternative protein companies, including Perfect Day, Oatside and Eat Just.
Meanwhile, Saudi Arabia’s state-owned Neom Investment Fund has invested in Liberation Bioindustries to fuel its construction of industrial precision fermentation facilities, Business Finland has poured in tens of millions to fund Solar Foods’s large-scale gas protein factory, and French public investment bank Bpifrance has supported local animal-free dairy startups Verley and Standing Ovation.
