Ganeden, which was founded in 1997, is best known for selling finished consumer products contain probiotic bacteria.
Its unique selling point is its proprietary Bacillus coagulans strains - and particularly its BC30 strain which is said to perform particularly well in shelf life and gastric survivability and resistance against temperature and pressure.
The investment not only belies the potential that DSM sees in probiotics and their future role in human health (and particularly Genden's variety), but also that the Dutch ingredients company is positioning to help shape the probiotics market going forward.
"We think that Geneden Biotech's BC30 strains have unique properties which could enable many new probiotic applications in both food and feed, that we want to follow closely as an area of potential future business for DSM," said Krijn Rietveld, senior VP new business development at DSM Nutritional Products.
"Besides our venturing investments we are currently evaluating possible further partnering with Gandeden for the development of specific applications."
In addition to selling consumer products containing Bacillus coagulans strains (including the Digestive Advantage brand aimed at irritable bowel syndrome and lactose intolerance), Ganeden also has a licensing arm.
This aims to tap the strains' potential in applications like functional foods, animal nutrition, feminine hygiene products and in environmental products.
DSM has not revealed how much of the $12m total it supplied.
Boston-based Capital Resource Partners also contributed to the investment round.
Ganeden made any public comment about what it intends to use to $12m for.
DSM Venturing exists to put money into companies and venture capital finds that are making inroads into areas of high growth and emerging markets.
In the field of nutrition, it has already made investments in personalised nutrition company Sciona, and dished out €2m ($2.9m) each Finnish genetic research company Jurilab Oy and France's Integragen.