Edinburgh-based biotech startup MiAlgae has received £2.3 million of investment as part of a fresh funding round.

The company uses micro-algae grown on wastewater, generally as a coproduct from the food and drink industry, to sustainably produce Omega 3 oils. Its products can be used in animal and fish feed, as well as for human consumption.

With Omega 3 oils currently produced from fishing, MiAlgae said that one tonne of its algae can save up to 30 tonnes of wild fish.

The latest funding round was led by the Ascension-managed Conduit Impact Fund, which invested £900,000 while new investor SIS Ventures supplied £350,000.

Established in 2016, MiAlgae received £100,000 as part of the Scottish EDGE competition in 2018.

A £1m investment followed in 2020 from Equity Gap, the Scottish Investment Bank, Old College Capital and Hillhouse Group. This helped the company commercialise its offering and target the global aquaculture and pet food industries.

The company recently received an £850,000 grant from Zero Waste Scotland and Scottish Enterprise.

The latest investment will support the company on the latest stage of its growth, including helping it complete a commercial demonstrator facility near Stirling. The new funding will also help MiAlgae further commercialise the production of other high-value compounds and pigments by expanding its biotech platform.

In addition, the investment will create ten new posts, including a head of engineering and commercial director.

While the company is currently focusing on using its products in the pet food sector, it is keen to expand into the aquaculture sector, the largest consumer of fish oil produced globally.

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MiAlgae Managing Director Douglas Martin commented: “It’s incredibly exciting to know that our investors see value in the biotechnology platform we’ve developed to tackle the production of omega-3 oils in a commercially viable way.

“Our process is championing the circular economy and the investment we have secured will be transformational in helping MiAlgae scale quickly both locally and abroad.

“Our commercial demonstrator plant, due to be completed early in 2023, will help us improve food security globally, while our research department continues to drive the development of exciting, commercially viable biotech innovations.”

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