Startup Genome launched the first cohort of the Global Hypergrowth Tokyo late-stage scaling program in March 2024 in partnership with the Tokyo Metropolitan Government. The initiative aims to propel the best Tokyo tech companies into successful global commercialization and expansion into international target markets.

The program addresses a significant support gap for fast-growing startups, recognizing them as drivers of economic growth and competitiveness, and creators of sustainable jobs and societal wellbeing. In its inaugural cohort, Hypergrowth provides 21 companies from Tokyo with access to global mentors, expert scaling advice from leading executives, go-to market support, and connections to potential new customers and investors.

The companies selected represent a variety of sub-sectors, including Deep Tech, Life Sciences, and AI, and have raised close to $100 million in total funding as they look to expand overseas.

In this article series, Startup Genome introduces the cohort companies, exploring the groundbreaking technologies each startup is developing to make a positive impact on the world.

Introducing Biotech Startup Fermenstation Co., Ltd.

Fermenstation is a Biotech company that transforms food residues and substandard products into natural, high-value food ingredients that enhance sensory experiences, health, and nutrition through proprietary fermentation technology. By leveraging a unique database of underutilized biomass and non-GMO microorganisms, Fermenstation provides a comprehensive one-stop service — from R&D to pilot manufacturing — enabling fermentation upcycling across industries.

Headquartered in Tokyo, Fermenstation’s upcycled ingredients are already used in various sectors, including food, beverage, and cosmetics. The company collaborates with major corporations and research institutions to integrate sustainable circularity into product development, ensuring that no byproduct goes to waste. Through partnerships with local communities, Fermenstation continues to pioneer innovative solutions for a more regenerative future.

In May 2024, Fermenstation won the SusHi Tech Challenge 2024, a two-day pitch contest held at SusHi Tech Tokyo 2024 hosted by the Tokyo Metropolitan Government. The competition featured 20 startups (selected from 507 startup applicants) from 43 countries and regions around the world. Late last year, it was a finalist in L’OREAL Big Bang Japan 2023, which evaluated innovative biotechnologies and eco-friendly manufacturing technologies.

Q&A with Fermenstation Co., Ltd. CEO Lina Sakai

Startup Genome spoke to Fermenstation for a look into its groundbreaking technology, biggest challenges, and future innovations.

Startup Genome (SG): Can you explain the core mission of your organization and how your technologies are advancing the field?

Lina Sakai (LS): Our purpose is "Fermenting a Renewable Society." Using our original fermentation biotechnology, we convert underutilized resources, particularly food loss (or residue) from food and beverage factories, into functional materials that do not rely on petroleum.

It is said that food loss and waste (FLW) accounts for one-tenth of global CO2 emissions. With the increasing demand for materials that do not depend on petroleum, Fermenstation’s technology, which develops raw materials solely from FLW, simultaneously addresses the issues of petroleum dependency and FLW.

SG: What are the biggest challenges your organization faces and how are you addressing them?

LS: Our current challenge is the risk that our organizational structure may not keep up with market demands and customer requests. To address this, we are working to expand our team with talented individuals, especially in R&D and business development.

In addition to R&D, the demand for our raw materials themselves is also increasing, and we recently expanded our factory in Japan by the end of 2024.

SG: How does your organization differentiate itself from other companies in the sector, particularly in terms of technology and business model?

LS: Fermentation’s technology is capable of producing high-performance biomass from various types of biomass, with over 10 years of R&D focused exclusively on underutilized resources. We possess ownership of an enzyme and microorganism library, as well as a database of underutilized resources. Fermenstation does not use genetically-modified microorganisms, eliminating the need for regulatory review and allowing for immediate adoption. Our social impact considerations and environmentally friendly products contribute to CO2 reduction.

Fermenstation has the capability to offer an integrated process from R&D to manufacturing, backed by ownership of an in-house factory. Thanks to these strengths, we are already providing R&D services and raw materials to major Japanese food and beverage manufacturers, with our raw materials being used in beverages sold nationwide.

SG: What support has your organization received through Startup Genome/Hypergrowth?

LS: Startup Genome Hypergrowth has provided introduction to mentors who support our pitch development, workshops, and opportunities for pitch events.

SG: How does your organization plan to contribute to sector growth, and what are your long-term goals for the company?

LS: Materials that do not rely on petroleum are in demand across various industries, yet truly sustainable and functional materials remain scarce. As an industry leader, we are committed to promoting regenerative materials that not only offer sustainability but also provide functionality, such as taste, aroma, and health benefits.

We aim to create a world where it is the norm to consider environmental and regional impacts throughout the entire process, from manufacturing to distribution — not simply focusing on plant-based origins. Through this, we will contribute to the growth of industries by setting new standards for sustainable and functional materials.

For a deeper look at the Tokyo ecosystem and to learn more about the Global Hypergrowth Tokyo cohort companies, Explore Tokyo.