Algal Scientific Corporation, a biotech developer and manufacturer of algae-based chemicals and a supplier of related technologies for the food and beverage industries, announced that it has closed a $7 million Series B funding round. The investment is being led by venture capital firm Formation 8, with additional participation from Evonik Industries and Independence Equity, all returning investors. This brings the total amount raised by the company to over $10 million.
Algal Scientific was founded in 2009 with the goal of leveraging its expertise in biology and engineering to develop transformative agriculture solutions for some of society’s greatest problems, including the massive overuse of antibiotics in the world’s food supply. The company has created Algamune, the world’s first beta glucan commercially produced from algae, which can be introduced into feed, including for fish and shrimp, to naturally support the animals’ immune systems without relying on antibiotics. Algamune is produced by growing a selected strain of natural, non-GMO microalgae in controlled, sterile fermentation systems so that it contains high concentrations of beta-1,3-glucan, which has long been known for its ability to naturally support a healthy immune system.
“There is no question that antibiotic resistance is a problem that is only going to get worse unless significant changes are made to the way we utilize antibiotics,” said Geoff Horst, CEO at Algal Scientific.
“We are thrilled that Formation 8, Evonik, Independence Equity and our other investors have had the foresight to get ahead of this growing issue by showing their support for Algal Scientific’s vision. Their financial and strategic support will help us accelerate our efforts to disrupt the agriculture space in a way that has lasting benefits for both animal and human health.”
“Our investment in Algal Scientific is a terrific example of our focus on supporting extraordinary entrepreneurs leveraging new technology platforms to tackle big global problems, in this case the negative consequences associated with current methods of food production,” said Jim Kim, founder and managing partner at Formation 8. “Algal Scientific is a disruptive force with an innovative and scalable agriculture technology solution and clear vision to bring about lasting global health benefits while also improving the quality and efficiency of livestock production.”
With this new funding, Algal Scientific plans to dedicate even more resources to addressing and overcoming the global overuse of antibiotics, specifically of those used in the food supply. It’s estimated that 80 percent of all antibiotics sold in the United States are used on livestock and poultry, which increases the chances for bacteria in the environment to develop resistance to these critically important drugs.
