Algal Scientific, an algae-loving Plymouth, MI based company, closed a $7M Series B round on March 31st, receiving investments from Formation 8, Evonik Industries and Independence Equity.
Algal Scientific was conceived in 2008. Inspired by the burgeoning algae blooms plaguing the Great Lakes, Algal’s now Chief Science Officer formed a team with deep wastewater experience to tackle the issue in their backyard.
The team came up with somewhat counter-intuitive solution that involved creating concentrated algal blooms near areas with the most algal discharge, which helped contain the algae’s overall reach.
The team went on to create Algal Scientific, and since then, the company has developed products for three markets, all based on its algal research. The Animal Health component of its lineup uses the company’s AlgaMUNE, a primarily whole dried and ground algae that serves as a main component in livestock feed. The company claims that AlgaMUNE promotes robust immune systems in livestock, in turn leading to greater productivity and reducing the need for antibiotic laced feed. This is seen as a win-win for consumers and producers alike.
AlgaGLUCAN is the company’s product for human use. According to the company, the product promotes a healthy immune system in humans and has far reaching applications in everything from cosmetics to pharmaceuticals.
Algal Scientific also has a Hypertrophic Water Treatment system, for which the company holds a patent, which treats large scale industrial water waste that is created by most food and beverage production.
“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.”
Formation 8, Evonik, and Independence Equity all returned to Algal Scientific for this round after a $3 million investment in April of last year.
This will be the second Ag tech start up investment from Formation 8, who also has Taxon Biosciences in their portfolio.
“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.”
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