AlgiSys BioSciences is raising $45 million in Series B capital with the help of Peakstone Securities, LLC to fund its initial commercial plans of commercializing EPA omega-3 fish oil substitutes.
AlgiSys is an ESG biotechnology company that sustainably and economically produces natural, non-GMO, fish-free ingredients rich in omega-3 fatty acids and aquatic plant-based protein, all suitable for a wide spectrum of B2B products. The company is targeting high-growth, addressable global markets such as aquaculture, animal health and pet care, human nutrition and supplements, pharmaceuticals and regenerative health therapies, and cosmeceuticals.
EPA and protein ingredients
AlgiSys is the only company able to deliver the highest and purest concentrations of EPA directly from algae through a highly scalable heterotrophic fermentation process. The company has global patents and proprietary technology as part of its intellectual property portfolio. Its heterotrophic fermentation process is an environmentally clean production system with no pathogens or contaminating elements diminishing the quality, quantity and purity of the produced ingredients.
AlgiSys’s microalgae is a complete 3-in-1 nutritional solution, producing omega-3, protein and EPA, that partially converts into DHA. The company has proprietary algae strains that also produce a plant-based protein that can be concentrated as high as 80-90%. The company is working to test these products in finfish.
“Forty percent of the world’s population is fish-dependent for protein,” said Peter Colella, chief executive officer of AlgiSys. “We’re ready to help solve this global challenge. AlgiSys has what we believe is the best scientifically tested and proven platform available today to produce EPA omega-3 rich ingredients for multiple industries. For example, aquatic farmers soon will be able to economically feed their fish with EPA rich microalgae ingredients instead of with unsustainable fish byproducts.”
Market demand and scale-up
The company has already received more than three years of product demand from potential customers. AlgiSys expects its all-natural, pure and fully traceable ingredients to be commercially available within 10 to 12 months and is initially working with production partners in the U.S. and Europe.
The Series B funds will be used for commercialization, strategic acquisitions, and hire key executives. The management and operations team currently includes entrepreneurs successful at monetizing innovative technologies, veteran manufacturing and financial executives, scientists, and engineers. AlgiSys has secured an international patents portfolio and additional patents are being filed.
During the next seven years, AlgiSys aims to produce over 170,000 tons of algae, which translates to approximately 13% of the captured fish market on an annual basis. Current studies have shown one ton of EPA oil replaces 60 tons of caught fish (forage) to feed farmed fish. This will result in AlgiSys meeting low carbon footprint standards through significant decreases in CO2 emissions and a reduction in marine energy expended to capture forage fish for fish oil and fishmeal, the company said.
“AlgiSys expects to progressively displace fish oil and fishmeal in the aquaculture industry. As price pressures increase on marine ingredients due to climate change impact and diminishing supplies, AlgiSys products will become a more valuable ingredient in improving the nutritional quality of farmed fish,” the company concluded.