Apr 7, 2023 - Economy

Seaweed recycling startups get funded, as Sargassum bloom hits Florida

Dan Primack

Beach in Fort Lauderdale, Fla., on March 16. Photo: Joe Raedle/Getty Images

Carbonwave, a Boston-based startup that "upcycles" Sargassum seaweed into biomaterials, raised $5 million in venture capital funding led by an affiliate of Natixis Investment Managers.

Why it matters: The largest-ever blob of Sargassum seaweed — brown, oily and often pungent — is currently floating toward Florida's west coast, with its outer edges already washing up on local beaches.

Between the lines: Carbonwave CEO Geoff Chapin tells Axios that the company's original plan was to farm seaweed for conversion into biomaterials, but pivoted as Sargassum blooms began to proliferate.

It currently has contracts with several Florida resorts to collect seaweed heading toward their properties, and also is having talks with local municipalities.

Details: Other investors include Viridios Capital, Popular Impact Fund and Katapult Ocean. Carbonwave now has raised a total of $12.9 million, and plans to close on another $2 million within the next month.

Elsewhere: Macro Oceans, a San Francisco-based startup that farms kelp for transformation into low-carbon chemicals, raised $5 million in seed funding co-led by Refactor Capital, Lowercarbon Capital and McKinley Capital.

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Seaweed recycling startups get funded, as Sargassum bloom hits Florida

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