Evonik Industries is investing in technology startup Algal Scientific Corporation, which markets 1,3-β-glucan under the trade name AlgamuneTM - a polysaccharide that strengthens immune response of livestock.
Algal has developed a new technology, making it the first company to obtain β-glucan from algae on an industrial scale. The company 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's new biotechnological process needs fewer production steps and at the same time generates significantly higher yields.
"Algal contributes toward sustainable animal nutrition," says Dr. Bernhard Mohr, head of Evonik Venture Capital. "In view of the growing global population and the subsequent increasing demand for animal protein, this is an interesting market with attractive growth potential."
Based in Northville, Michigan, the United States, Algal Scientific was formed in 2009 after winning the inaugural DTE Clean Energy Competition hosted by the University of Michigan and DTE Energy.
"We are very pleased that Evonik is joining us as a strategic partner," says 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."
Evonik-one of the world leaders in specialty chemicals-is part of an investors' consortium that is investing more than US$3 million in Series A financing round. Also part of the consortium are the US venture capital firms Formation 8 (California), Independence Equity (Illinois), and Envy Capital (Michigan), as well as regional funds and business development companies promoting the establishment and development of attractive companies in Michigan.
Within its venture capital activities Evonik 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 US 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.
