Scotland-based biotechnology innovator MiAlgae is set to expand its operations after securing £14 million in a Series A funding round to help it scale the production of its marine omega-3 product NaturAlgae.
Founded in 2016 by Douglas Martin, MiAlgae uses the by-products of whisky distillations to grow microalgae rich in marine omega-3s.
The company, based at Heriot-Watt University in Edinburgh, applies advances in science and technology to improve food security and reduce the impact of humanity on the planet.
New venture capital investors SWEN Blue Ocean, Clay Capital and Rabo Ventures joined existing backers Equity Gap, Old College Capital, Social Investment Scotland (SIS) Ventures, Ananke Ventures, Ascension Ventures and Scottish Enterprise, who have followed their money, in the oversubscribed round.
The investment will fund the development of a new facility and accelerate its commercialisation, and will enable the company to strengthen its team with key hires.
MiAlgae has successfully reached commercial scale of NaturAlgae at its demonstrator site in Scotland.
“Over the past 30 years, global aquaculture industry has expanded more than fivefold to help feed the growing world population,” said MiAlgae.
“However, the supply of fish oil, which is the primary source of Omega-3s for farmed fish, has remained stagnant at around one million tons per year.
“This fish oil is derived by harvesting 20 million tons of wild-caught fish annually, a practice that is both unsustainable and harmful to marine ecosystems.
“As a result, omega-3 levels in farmed salmon have plummeted to the bare minimum required for their health. The industry urgently needs to find alternative omega-3 sources to reduce its dangerous dependence on dwindling wild fish stocks.
“The 2023 launch of MiAlgae’s demonstrator site has proven the viability of its cutting-edge approach. By repurposing nutrient-rich by-products from whisky distillation, the company grows microalgae, providing an eco-friendly source of omega-3s.
“This breakthrough positions MiAlgae to revolutionise the market by offering an alternative to the existent unsustainable product derived from wild-caught fish.
“Building on this success, MiAlgae is now gearing up to take the next step with the development of an industrialscale production facility in Scotland.
“The new site will enable full commercialisation of NaturAlgae, meeting rising demand across the aquaculture, pet food, and human health sectors for sustainable omega-3s. This expansion will boost MiAlgae’s production capacity, fuel its global growth, and create new ‘green’ jobs.
“The recent funding round will finance the new facility’s development, speed up further commercialisation, and support team growth with strategic hires.”
CEO Martin said: “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 needed to meet the growing global demand for sustainable omega-3s whilst continuing to advance innovation in biotechnology.”
Christian Lim, Managing Director of SWEN Capital Partners, said: “The Blue Ocean Fund targets startups tackling threats to our oceans such as overfishing, pollution, and climate change. MiAlgae’s innovative microalgae fermentation addresses the omega-3 supply gap with a scalable, sustainable alternative to fish oil. The market is ready, and we’re excited about their potential impact.”
Ali Morrow, Partner at Clay Capital, said: “MiAlgae stands out by combining technology and market demand to address the growing need for fish oil alternatives. As fish stocks decline and prices rise, MiAlgae’s approach is poised for global impact, and we’re excited to see it unfold.”
Shishir Sinha, Director at Rabo Ventures, said: “The animal feed industry has long sought scalable solutions to reduce the industry’s reliance on wild fish. Douglas and the MiAlgae team have cracked it, with their drop-in omega-3 product. We’re excited to leverage Rabobank’s expertise and network to accelerate their impact globally.”