MiAlgae has secured investment of £2.3m to help drive the next stage of its growth journey.
Established in 2016, the Edinburgh-based biotechnology start-up has created a solution to producing a sustainable source of Omega-3 for animal and human consumption – something which is currently produced by extracting the oil from billions of wild caught fish.
Its novel biotechnology platform uses low-value co-products from the food and drink industry as a feedstock to initially grow microalgae rich in essential oils.
Plans are already in place to commercialise other high-value compounds and pigments through expansion of the platform.
The Conduit Impact Fund, managed by Ascension, led the round, investing £900,000, with new investor SIS Ventures putting forward £350,000.
Having already previously invested, Equity Gap, Old College Capital and Scottish Enterprise all committed to additional funding, totalling more than £1m.
The latest investment builds on the £850,000 of grant funding recently secured 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 in the near future. 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 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 both 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.”
Hadley Diest, investment manager at the Conduit Impact Fund, said: “MiAlgae’s circular economy approach to producing algae rich in Omega-3 solves key pain points on the supply (Scotch whisky distilleries) and demand (pet food and fish feed producers) sides - to both dispose of Scotch byproducts sustainably and increase the supply of sustainably sourced, price-competitive, Omega-3 into the broader market.“
Rob Halliday, senior investment manager at SIS Ventures, added: “We believe in MiAlgae’s mission to become a world leader in biotechnology for good, and, by improving food security and reducing the impact of humanity on the planet through sustainable Omega-3 production, will deliver important societal and environmental impact aligned to three of the United Nations Sustainable Development Goals - life below water, good health and wellbeing, and responsible consumption and production.“
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