Indianapolis, Ind. – Algaeon Inc., an Indianapolis-based biotech company that has developed algae cultivation technology for use in the nutraceutical and micronutrient markets, announced today that it has closed a $770,000 investment round of funding from early-stage growth company investors. The investment group included City Securities Corporation and multiple individual Angel investors.
The funding will support the addition of capacity for sample qualification and animal testing for 3 prospective customers and the design of a commercial scale facility. This sets the ground work for the Company to expand operations and to produce products used as food supplements to promote health and disease prevention for humans and animals.
Algaeon is an early stage company entering its early growth phase. Founded in 2008, the company completed 2 rounds of funding in 2012 for $1.2 Million. The Company has currently completed technology scale-up and is working with 3 customers to secure long-term supply contracts. The company will be seeking additional funds for construction of commercial scale capacity. The first commercial scale capacity will begin operation in late 2013. Capacity will continue to be expanded thereafter to fulfill purchase contracts with industry leading companies.
Algaeon’s patent-pending production technology sets a new standard in the industry for efficiency and overcomes the common industry challenges of contamination control and cost containment.
Growing demand for over-the-counter health solutions is driving the need for innovative large volume supplies of nutritional supplements. Similarly, there is growing demand for improving animal production efficiency by improving survivability, health and weight gain without the use for antibiotics. Demands in these markets are growing and the industry is having difficulty obtaining sufficient supply.
“The markets for our high-value algae derivative products have been growing at significant rates, and the investment will advance our entry into these high-demand areas,” said Paul DeLacey, President and CEO, Algaeon, Inc.
Source: Algaeon Inc.