Chilean biotech startup Frankles has closed a $1 million funding round and become the first portfolio company of corporate venture arm Carozzi Ventures. The investment round was led by Südlich Capital with participation from Veterquímica, marking an early milestone for Chile’s food innovation ecosystem. For Carozzi Ventures, the deal also represents the first concrete execution of its corporate venture capital strategy, launched one year ago.
Frankles and its mission
Founded in 2020 by Francisca Schäfer and Matías Henríquez, Frankles was created to tackle one of the least addressed yet most impactful challenges in the agri-food value chain. The company focuses on the recovery and valorization of byproducts that are currently discarded or underused, turning them into new sources of value. Its work positions Frankles at the intersection of biotechnology, sustainability, and industrial-scale food production.
Biotechnological approach to food byproducts
Frankles has developed a biotechnological process that extracts active principles and high-value biocompounds from agri-food byproducts. These biocompounds can be used as core ingredients in new product lines, enabling food and related industries to build differentiated and more sustainable offerings. The company combines applied science, circular economy principles, and business collaboration with partner companies to deliver solutions that can scale.
Strategic move by Carozzi Ventures
For Carozzi Ventures, the investment in Frankles is described as both strategic and aligned with the long-term vision of the Carozzi group. The startup’s technology offers the potential to power new products across the group’s portfolio and to support the exploration of adjacent industries beyond traditional food categories. The partnership is therefore seen as an opportunity to deliver both financial returns and strategic capabilities in sustainable ingredient innovation.
Market potential and impact
The qualities that attracted Carozzi Ventures include the versatility of Frankles’ biocompounds, which can enhance product development in different segments of the food industry. The startup directly addresses a global and still largely unresolved problem, the management and revalorization of agri-food byproducts at scale. At the same time, its circular economy value proposition meets rising global demand for sustainable and traceable ingredients.
Growth plans and regional significance
Following the funding round, Frankles is focused on strengthening its scientific team and expanding its operational capacity. From its base in Chile, the company aims to consolidate initial results with partner firms that have already shown interest in its products and technology. Backed by specialized funds, a corporate venture investor, and companies from southern Chile, Frankles is emerging as one of the most promising Chilean startups in applied biotechnology for the food industry.
The $1 million round marks a key step in Frankles’ transition from early-stage development to industrial scaling. It also signals a broader shift in Chile’s food sector, where established groups like Carozzi are beginning to back deep tech solutions that convert waste into value. With new capital, strategic partners, and growing market interest, Frankles is positioned to play a meaningful role in reshaping how agri-food byproducts are managed and monetized.
Source: StartupsLatam