EI client MiAlgae has raised £1 million from a consortium of investors including Old College Capital to focus on commercialising its revolutionary microalgae product, targeting the rapidly growing global aquaculture and pet food industries.
The biotech startup uses co-products from the whisky distillation process to produce microalgae, which is high in omega 3 and other nutrients. The algae can be used to sustainably feed fish and create animal food. MiAlgae estimates that one tonne of its algae saves up to 30 tonnes of wild fish.
MiAlgae will use the investment to double the size of its business premises, commission a demonstrator plant in East Lothian and make five new appointments in the next 12 months.
Old College Capital, the University’s venture fund managed by EI, is co-investing with previous investors in MiAlgae – Equity Gap and Scottish Investment Bank – alongside Hillhouse Group, a new investor in the business. The latest fundraising follows a previous investment of £500,000 in June 2016 by Equity Gap, SIB and OCC.
Andrew Vernon of Hillhouse Group said: “MiAlgae has essentially taken a by-product from one industry and turned it into a solution for another industry. Through the application of biotechnology, MiAlgae is finding solutions to feed the world’s population, and with the global aquaculture industry set to double in size in the next ten years, this is a very promising business indeed.”
“Since our last investment in MiAlgae 18 months ago, the business has achieved a great deal, designing and building its pilot plant, making its first sales to a premium dog food company, and beginning production with its first large scale tank.
“The business now turns its focus to commercialisation and scaling up. The global pet food market is worth $100 billion and growing at around 5%. MiAlgae plans to supply customers in both the pet food market and the aquacultural industry in the next 12 months. This is an exciting business, and one to watch over the next couple of years.”
– Fraser Lusty, Investment Director at Equity Gap.
‘Ocean-friendly omega 3’
MiAlgae was founded by Douglas Martin in 2016 while studying Biotechnology at the University of Edinburgh. He has been supported by EI throughout his entrepreneurial journey.
“I am really pleased that with this investment we can turn our attention to growing the business. We plan to target the pet food and aquaculture industries with our sustainable, ocean-friendly, algae-derived omega 3.
“I am proud that we operate as part of the circular economy where, by using a low value co-product from the whisky industry, we are creating a valuable supply of nutrients for the animal and fish food industries, thereby using the planet’s resources more efficiently. There is no doubt we will see a rapidly growing market for our product.”
– Douglas Martin, Founder of MiAlgae.
Kerry Sharp, Director, Scottish Investment Bank, said: “MiAlgae perfectly epitomises Scotland’s willingness to take the lead on climate-related issues.
“By turning the by-products of manufacturing and industrial processes into a valuable resource, they and other pioneering companies like them are completely redefining the concept of waste.
“We’re delighted to continue supporting MiAlgae and look forward to helping them realise their commercial and environmental ambitions.”
The global aquaculture market is valued at $70 billion and set to double in size by 2030.