Illustration: Gabriella Turrisi/Axios
Last updated: June 5, 2023
More than a decade after the unproductive algae biofuel boom, the algae industry is once again attracting attention from climate-minded investors, though this time with a focus on specialized products across varied industries. Deals that have happened since January 2023 include:
- Mara Renewables, a Canadian producer of algae-based bio products, closed a $39.5 million equity raise, led by InvestEco Capital along with BDC Capital, Export Development Canada, MacKinnon, Bennett & Company Inc and Thai Union Ingredients Co.
- Origin by Ocean, a Finnish company that refines algae to be used in commercial products, raised €7.5 million in seed funding from Vioma Ventures and Lifeline Ventures.
- Carbonwave, a Puerto Rico-based manufacturer of plant-based biomaterials, closed a $5 million Series A round led by Mirova1, with participation from Viridios Capital, Popular Impact Fund and Katapult Ocean
- Alga Biosciences, a San Francisco-based company that develops algae feed additives, closed a $4 million seed round led by Collaborative Fund, along with Y Combinator, Day One Ventures, Cool Climate Collective, Pioneer Fund and Overview Capital.
- Mýsköpun, an Icelandic biotech company that studies and tests algae samples, raised $700,000 of venture funding, led by The New Venture Business Fund.
- Viridos, a La Jolla, Calif.-based developer of algae-based low-carbon fuel for heavy-duty transportation, raised $25 million in a Series A round led by Breakthrough Energy Ventures, along with United Airlines Holdings Inc. and Chevron Corp.
- Exxon Mobil Corp. cut its funding with Viridos in February, ending a decades-long relationship. Exxon confirmed, per Bloomberg, that it’s pulling back on funding for algae in favor of other technologies.
- Running Tide, a Portland, Maine-based company that helps businesses offset their carbon emissions via kelp, received funding from Microsoft. The exact amount was not disclosed, but the deal is valued in the single-digit millions, Running Tide said.
- Provectus Algae, an Australian microalgae biotech company, secured an undisclosed strategic investment from CJ BIO, a division of South Korea-based company CJ CheilJedang.
- Steven F. Schnittger, a former Estée Lauder executive, joined Provectus Algae as a cosmetics advisor in March.
- Loliware, a San Jose, Calif.-based company that develops seaweed-derived materials, closed a $15.4 million pre-Series A round.
- Algiecel, a Danish provider of algae-based carbon capture technology, raised €1.3 million in seed funding from Denmark’s Export and Investment Fund, among others.
- Algama Foods, a French microalgae producer, raised €13 million in a Series A financing, joined by Thai Union’s venture capital fund.
