SCOTLAND – Scottish biotech firm MiAlgae has successfully raised £14 million (US$18.5 million) in funding to scale up production of its innovative omega-3 product, NaturAlgae.
Following the success of its demonstrator site in 2023, MiAlgae has now reached commercial production capacity at its Scottish facility.
This latest investment will allow the company to expand its operations, build an industrial-scale production facility, and meet the growing demand for sustainable omega-3s in aquaculture, pet food, and human health sectors.
MiAlgae’s breakthrough product, NaturAlgae, offers a sustainable alternative to traditional omega-3s, which are typically sourced from wild-caught fish.
By growing microalgae using by-products from whisky distillation, the company not only addresses environmental concerns but also provides a scalable solution for industries looking to reduce their reliance on marine resources.
This innovative approach helps combat overfishing and reduces environmental degradation, making it an attractive option for sustainability-focused markets.
Douglas Martin, CEO of MiAlgae, expressed his excitement about the company’s growth, stating, “This investment marks a significant milestone for MiAlgae. The success of our demonstrator site has validated our technology at scale, attracting serious international support. With this backing, we’re focused on building the infrastructure to meet the growing global demand for sustainable omega-3s.”
The oversubscribed funding round drew interest from several new venture capital investors, including SWEN Blue Ocean, Clay Capital, and Rabo Ventures, while existing supporters like Scottish Enterprise and Social Investment Scotland (SIS) Ventures also contributed.
This financial boost will enable MiAlgae to accelerate its commercialization efforts, expand its team, and position itself for global expansion. The new facility is expected to play a crucial role in helping the company meet the increasing demand for sustainable omega-3 products.
Christian Lim, Managing Director of SWEN Capital Partners, praised MiAlgae’s approach, highlighting the scalability of its microalgae fermentation process.
“MiAlgae’s method provides a scalable alternative to fish oil, addressing the omega-3 supply gap while helping to protect marine ecosystems,” Lim said, emphasizing the importance of such innovations in today’s environmentally conscious market.
Despite the significant financial backing, MiAlgae faces challenges in scaling its operations. At the Blue Food Innovation conference in London earlier this year, Martin discussed the company’s strategy for overcoming rising infrastructure costs.
He emphasised the importance of developing small, decentralised production units that ensure sound economics while scaling. By using waste materials, MiAlgae aims to streamline its value chain further and enhance sustainability.
Martin also stressed the role of early-stage partnerships in securing feedstock and energy supplies, both vital to the company’s scalability. He noted that waiting for startups to reach large-scale production without such early commitments could delay growth.
Securing these partnerships early, he explained, can help transform startups into well-established businesses.
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