Evonik invests in Algal Scientific
US start-up manufactures a polysaccharide that strengthens immune response
German speciality chemicals group Evonik Industries is investing in the technology start-up Algal Scientific Corporation, which is located in Northville, Michigan, USA.
Evonik is part of an investors’ consortium that is investing more than US$3m in a Series A financing round. Under the trade name Algamune, Algal markets 1,3-β-glucan, a polysaccharide that strengthens immune response. It is used as a nutritional supplement, in pharmaceutical formulations, as well as in animal feeds.
Algal says this is the first time it has been possible to obtain β-glucan from algae on an industrial scale. The company has developed a new technology for this purpose and is currently in the process of starting up the first commercial production plant in Michigan. β-Glucan is usually extracted from grain or produced using yeasts or fungi. Algal says its new biotechnological process needs fewer production steps and at the same time generates significantly higher yields.
'We are very pleased that Evonik is joining us as a strategic partner,' said Geoff Horst, CEO of Algal. 'We have been able to attract a strong group of investors; this allows us to advance commercial production and our business.'
In addition to Evonik, the consortium includes US venture capital firms Formation 8, Independence Equity and Envy Capital, as well as regional funds and business development companies.
Within its venture capital activities Evonik plans to invest a total of €100m in promising start-ups with breakthrough technologies and leading specialist venture capital funds. These investments will focus on Europe, the US and Asia.
