Arzeda uses AI to revolutionize protein design for sweeteners and more

Arzeda, a biotechnology firm founded in 2009 by researchers from the University of Washington’s Baker Lab, is leveraging artificial intelligence (AI) to transform protein design. The company, which was initially bootstrapped for nine years, has successfully transitioned to the commercial stage and attracted considerable venture capital investment.

AI in protein design holds immense potential, ranging from developing drug treatments to creating new products in home care, agriculture, food, and materials. Arzeda’s approach combines advanced biophysics-informed AI models with generative AI methods, including large language and diffusion models. These models are trained on a proprietary dataset of protein sequences and structures, which Arzeda compiled independently.

Unlike many firms focusing on biomedical applications, Arzeda is dedicated to redesigning chemical-heavy goods with more sustainable AI-designed proteins and enzymes. Its first product is a stevia-based sweetener for a consumer brand. Upcoming products include laundry detergents for Unilever and biodegradable materials co-developed with W. L. Gore.

Arzeda handles the entire process from design to validation and manufacturing. The company earns revenue through protein and enzyme sales and through creating end products with contracted partners. Arzeda’s innovative approach includes using filters based on structural biology and biophysics to ensure accurate designs before experimental testing.

The firm’s success has attracted notable clients, including Unilever, Gore, AAK, and the Department of Defense. The recent $38 million funding round, led by Sofinnova Partners and including Fall Line Capital, Sucden Ventures, Silver Blue, Continental Grain Company, Bunge Ventures, and Lewis & Clark Agrifood, has brought Arzeda’s total funding to $83 million. The capital will support scaling up production and further commercialization of Arzeda’s products.

Arzeda’s CEO, Alexandre Zanghellini, highlights the company’s progress, noting that its ability to secure investment in a challenging fundraising environment underscores its success.