Biotech Start-Up Gets £2.3 Million to Commercialise Circular Economy Platform
MiAlgae has raised £2.3m in funding to propel the company into the next phase of its development.
The Edinburgh-based biotechnology start-up, founded in 2016, has developed a solution for providing a sustainable source of Omega-3 for animal and human use, which is currently obtained by extracting the oil from billions of wild-caught fish.
Its innovative biotechnology platform starts with low-value co-products from the food and beverage industries as a feedstock to grow microalgae rich in essential oils.
The platform is already being expanded to commercialise new high-value chemicals and pigments.
Ascension's Conduit Impact Fund led the round, investing £900,000, with new investor SIS Ventures contributing £350,000.
Equity Gap, Old College Capital, and Scottish Enterprise have all committed to additional capital totalling more than £1 million after previously investing.
The latest investment follows the previous £850,000 grant from Zero Waste Scotland and Scottish Enterprise.
The money will support the completion of a commercial demonstrator facility near Stirling, which should drive MiAlgae’s expanding commercial traction.
Initially, the company is focused on the pet food sector, with an eye on expansion into the aquaculture sector soon. Aquaculture is the largest consumer of fish oil produced globally, which is used in fish feed.
The investment will also help grow the team at MiAlgae, with 10 new posts, including a head of engineering and a commercial director, set to be created.
Douglas Martin, managing director at MiAlgae, said:
“Our process is championing the circular economy, and the investment we have secured will be transformational in helping MiAlgae scale quickly locally and abroad.
“Our commercial demonstrator plant, due to be completed early in 2023, will help us improve food security globally while our research department continues to drive the development of exciting, commercially viable biotech innovations.”