Swedish Algae Factory to scale up production after securing new funds
Gothenburg start-up Swedish Algae Factory has raised over SEK 50 million in its latest share issue. The new funds will allow the company to scale-up production and to continue its expansion.
The green tech company extracts advanced materials from microscopic algae known as diatoms, which are a relatively unused renewable resource. These materials have exceptional light manipulating properties and can also absorb or release particles depending on the surrounding environment.
The material’s trademark name is Algica and it can, for example, be used to improve the efficiency of solar panels or in personal care products.
Swedish Algae Factory is the only company in the world that grows these algae on a large scale.
Following the share issue, the company raised SEK 53 million (approx. EUR 4.9 million). One of the main investors is Aqua-Spark, a Dutch investment fund with a focus on sustainable aquaculture businesses. Other investors include Chalmers Ventures, Formica Ventures, Almi Invest Greentech, Mark Hartney and Gladium AB.
“We are very happy that we can now scale up production to meet the growing demand for Algica within the personal care and the solar energy industries. We are also pleased to have strong investors with relevant expertise,” said Sofie Allert, CEO and co-founder of Swedish Algae Factory in a press release.
The company is founded on research from the University of Gothenburg, and was started in 2016 through the Chalmers School of Entrepeneurship. In late 2019, it won Postcode Lotteries Green Challenge for sustainable entrepreneurship, where it was chosen among 1,200 green tech companies from around the world.
“Chalmers Ventures has worked with the company from the start and we are impressed over how they have taken the step from research to commercialisation. We look forward to following the firm closely during an exciting phase with continued expansion and upscaling with focus on sustainability,” said Andreas Höye, investment director at Chalmers Ventures, in the press release.
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