Biotech firm gets $4M in seed funding
SYDNEY — A Sydney-based biotech firm developing an additive to make stronger, cheaper and environmentally friendly concrete has received $4 million in seed financing.
AlterBiota, which has a pilot plant located in Edwardsville, successfully closed a seed financing round led by Invest
Nova Scotia, according to a news release issued last week.
Funds will be used for industrial product trials, engineering of a commercial scale plant, and to hire additional staff to facilitate growth, refinement, and commercialization of the company’s biographene admixtures which offer ‘practical and economical means to reduce the carbon footprint of concrete.’
“This financing milestone is a major victory for the alterBiota team and our committed partners,” Mark Masotti, co-founder and CEO of alterBiota, said in a statement.
“I was raised in the construction industry and have always felt compelled to make it as sustainable as it can be while delivering real value to customers. With this injection of capital, we’ll be able to take meaningful steps towards making that vision a reality.”
RELOCATED TO EAST COAST
In May 2021, Masotti told the Cape Breton Post he first looked within his native Ontario for a place to set up shop but couldn’t find the right fit.
Then, after a Nova Scotiabased investor suggested he relocate to the east coast, he learned of the opportunities available at the Verschuren Centre at Cape Breton University.
“We did our proof of concept work and got ourselves organized corporately, and then we needed to find a home to take this to the next step,” he told the Post in 2021.
“We wanted to start producing larger batches so we can hand them over to our industrial partners, who are already there and are interested in our product. We just needed a way to start producing enough to start testing it with them.”
Invest Nova Scotia and BDC Capital’s Climate Tech Fund anchored the financing round with strategic investments of $1.5 million each, according to a news release.
This is the organization’s second investment in alterBiota, having also participated in the company’s pre-seed equity financing.
BDC Capital’s Climate Tech Fund invests in climate technology firms demonstrating high potential to grow into global champions and deliver significant greenhouse gas reductions.
An additional $1 million was raised from private investors.
“Bioeconomy businesses, such as alterBiota, are making the most of our capital as well as intensive infrastructure unique in North America, like Nova Scotia's Verschuren Centre's shared-use bioprocessing facilities, and locally available feedstock,” Jennifer Fuccillo, Investment Principal, Invest Nova Scotia, said in a statement,
“We’re excited to support alterBiota through their next phase of growth.”
People looking to join alterBiota can check the career section of the company’s website (alterbiota.com/careers).