Biotech startup to expand capacity with funding boost

● Venture making aquaculture feed from microalgae ● Six-figure sum from likes of SIB and Equity Gap

A start-up that aims to revolutionise the fish feed sector and beyond with microalgae made from the co-products of whisky has received a sixfigure boost to help grow production capacity 30-fold.

Mialgae was founded by Douglas Martin while a masters student at the University of Edinburgh, and grows algae rich in omega-3 and other nutrients using products generated by the whisky distillation process. The Edinburgh-based firm has received a total of £500,000 from Equity Gap, the Scottish Investment Bank (SIB), and the university’s venture fund Old College Capital, which will fund a pilot plant for its technology at a whisky distillery. Martin will also grow the team of two to five.

The microalgae produced can be used as a raw material for agricultural food products, with the company initially targeting the aquaculture industry, whose future growth is predicted to require new sources of feed. It is also worth £1.8 billion a year to the Scottish economy, according to the Scottish Government.

Martin said: “This is a huge deal for us. This investment will fund the initial scale-up steps and de-risk our commercial facility.

“It certainly sets us on track to achieve our ambitions.”

His targets extend beyond its initial remit and outside Scotland. “We’re looking at multiple industries in the supply side, multiple industries at the product side, then diversification into multiple products beyond feeds,” Martin said.

The seed investment comes after he obtained a Smart: Scotland grant in 2017, has undergone the EU’S threestage Climate-kic Accelerator programme, has had competition success including Innovate UK, and was recently named Shell LIVEWIRE Young Entrepreneur of the Year.

He also recently pitched at the final of the 2018 Scottish EDGE contest with the chance of being awarded an additional £100,000 of funding.

SIB head Kerry Sharp said: “This is an exciting new equity investment for Scottish Enterprise into a company that has utilised the circular economy to make an innovative and valuable product.”

Martin has been supported by LAUNCH.ED, the university’s service for student entrepreneurs, since January 2016 when he was doing an MSC in syntheticbiologyandbiotechnology.

George Baxter, chief executive officer of Edinburgh Innovations, which manages LAUNCH.ED, said: “It’s wonderful to see investors show confidence in Douglas and Mialgae. The innovation of his process and the way it will help the environment have great potential.”

Fraser Lusty, director at business angel group Equity Gap, added: “We look forward to supporting [Martin] and the company through this exciting next phase.”