Swedish Algae Factory has secured €3m of fresh funding to expand the production of algae and find new applications for the ingredient.
Its patented material, Algica, is developed from algae shells and is already used in more than 60 personal care products including L:A Bruket’s 281 protective fluid and Verso’s daily SPF 50.
The fresh cash comes from new and existing investors, including Chalmers Ventures, and will be used to scale production and launch new partnerships in the beauty space this year.
Swedish Algae Factory currently cultivates microalgae in 3,500sqft of space at its factory in Sweden with the potential to scale to 10,000sqft.
Microalgae group diatoms are responsible for up to one-fifth of the planet’s oxygen production, and the shell’s natural capabilities have captured the attention of the personal care industry.
They are packed with vitamins and minerals, amino acids and micro-nutrients, elements that are essential for the proper functioning of the body and cells.
As single-celled organisms, they contain concentrated biochemistry and need little light to grow and less water than land-based plants.
Agica has unique light-altering, absorptive, releasing and blocking properties that are unmatched by synthetic materials, the company said.
The start-up will also explore other uses for the material such as solar panels, as well as further application in cosmetics.
Recent R&D by the start-up has shown that Algica can also reduce and replace harmful chemicals in multiple applications, such as wound care.
“We are beyond excited to have a fully functioning factory that serves our clients globally,” said Sofie Allert, CEO and co-founder of Swedish Algae Factory.
“We are striving towards a production that is as environmentally-friendly as possible, using recycled nutrients and carbon dioxide for algae growth.
“Our organic by-product is used to produce biogas and eco-fertilisers, but in the future, it may be used in animal feeds, cosmetics and food products.”
“Now, with the scaled production and increased interest for Algica in existing and emerging markets, we can scale the impact of algae shells superpower.”
The start-up was founded in 2016 by Allert, a biotechnical engineer with a master’s in business development, and Angela Wulff, a professor in marine ecology.
The pair started growing algae at the University of Gothenburg and started producing Algica in small commercial volumes in 2018 at a site in Kungshamn, Sweden.
“Swedish Algae Factory has done truly groundbreaking work by scaling their production while generating revenue with existing clients, something that takes deep tech companies usually a lot longer,” said Jonas Bergman, investment director from Chalmers Ventures.
“As green chemicals are something that we at Chalmers Ventures find especially interesting, we cannot wait to see what sort of solutions diatom shells can be used to replace harmful products.”