NORTHVILLE, Mich., April 28, 2014 /PRNewswire/ -- Algal Scientific Corporation, a biotech developer and manufacturer of algae-based chemicals and a supplier of related technologies for the food and beverage industries, today announced that it has completed a $3 million financing led by Evonik Ventures, Formation8 Partners, and Independence Equity.
"The completion of this funding allows us to begin the commercial scale production and sale of Algamune™, the company's brand of algae-based beta-1,3-glucan, a valuable compound used in poultry, swine, aquaculture and other livestock production, human foods, and nutraceuticals in order to support a healthy immune system," said CEO and Chief Science Officer, Geoff Horst. He explains "Beta-1,3-glucan has been researched for years, but until now it has been too expensive for most livestock applications. Our product can provide higher efficacy and consistency than ever before, with a lower cost, and offers a real alternative to the overuse of antibiotics in food production. We are excited to partner with our lead investors.
"Algal contributes toward sustainable animal nutrition," says Dr. Bernhard Mohr, head of Evonik Venture Capital. James Zhang, joining the board from Formation 8 added, "In order to meet the demand of a growing middle class, China has an ever increasing need of meat and milk products. Algal Scientific's product is a great fit for China and other developing Asian countries."
About Algal Scientific
Algal Scientific was formed in 2009 after winning the inaugural DTE Clean Energy Competition hosted by the University of Michigan and DTE Energy. Since then, the company has gone on to win several other awards and competitions including the $500,000 Grand Prize in the Accelerate Michigan Innovation Competition.
Algal recently expanded into a new production facility in Northville, Michigan from its first headquarters at the Michigan Life Science and Innovation Center.
In addition to the lead investors, participants in this financing included Envy Tech Fund I, the Michigan Economic Development Corporation, the Michigan Pre-Seed Capital Fund, the First Step Fund and private investors. For more information, visit www.algalscientific.com.
About Formation8 Partners
Formation8 is a venture capital firm that provides financial and strategic capital to early growth smart enterprise and energy technology companies. We support entrepreneurs who seek to transform the most important global industries by solving hard problems with technology solutions. Partnership is in our DNA. We value trusted relationships with entrepreneurs, investors, and strategic partners through our global network. For more information, visit www.formation8.com.
About Evonik Venture Capital
Within its venture capital activities Evonik Industries, one of the world leaders in specialty chemicals, plans to invest a total of €100 million in highly promising start-ups with break-through technologies and leading specialist venture capital funds. These investments will focus on Europe, the U.S. and Asia. Partnering with innovative start-up companies supplements Evonik's approach of open innovation and creates excellent opportunities for accelerating the development of new businesses and opening up future growth fields. For more information visit their website at www.evonik.com/venturing.
About Independence Equity
Independence Equity I, LP is an early-stage venture capital fund focused on technologies that improve resource utilization. These include technologies that reduce input costs such as raw materials, energy and labor, improve yield in production processes, or decrease waste or scrap. The fund's interests comprise sectors such as material science, industrial innovation, and clean technologies. For more information visit their website at www.independence-equity.com.
SOURCE Algal Scientific Corporation