dinburgh-based biotech startup MiAlgae has received an investment of £1 million ($1.3USD) to focus on the commercialization of its microalgae products that use co-products from the whisky distillation process to produce microalgae high in omega-3 and other nutrients to sustainably feed fish and create animal food.
MiAlgae was founded by Douglas Martin in 2016 while studying Biotechnology at the University of Edinburgh, and has been supported by Edinburgh Innovations, and the University’s commercialization service, which also manages Old College Capital, the University’s venture fund.
The company 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. “I am really pleased that with this investment we can turn our attention to growing the business,” said Mr. Martin. “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,” he said.
The investment also comes from previous investors in MiAlgae — Equity Gap, Scottish Investment Bank and Old College Capital, alongside Hillhouse Group, a new investor in the business. 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,” according to Fraser Lusty, Investment Director at Equity Gap, “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 is turning its focus to commercialization 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,” said Mr. Lusty.