Whisky-cultivated algae startup snags £14 million for new production facility

Scottish biotech startup MiAlgae is celebrating a major milestone in its bid to disrupt the aquaculture feed ingredient market for Omega-3, with the news it has secured £14 million (EUR 16.8m / USD 18.6m) in funding to develop an industrial-scale production facility.

“This investment marks a significant milestone for MiAlgae,” said Douglas Martin, CEO of MiAlgae. “The success of our demonstrator site has validated our technology at scale. With this backing, we’re focused on building the infrastructure needed to meet the growing global demand for sustainable Omega-3s while continuing to advance innovation in biotechnology.”

The oversubscribed funding round saw new investors SWEN Blue Ocean, Clay Capital, and Rabo Ventures join MiAlgae's existing backers such as Equity Gap and Scottish Enterprise, providing crucial support for MiAlgae’s growth plans.

Whisky byproducts used to cultivate microalgae, an alternative to fish oil

MiAlgae’s innovative process uses nutrient-rich by-products from whisky production to cultivate microalgae, offering a sustainable and eco-friendly alternative to fish oil, the company says.

The start-up has set its sights in particular on the aquaculture feed ingredients market, arguing that the industry "urgently needs to find alternative Omega-3 sources to reduce its dangerous dependence on dwindling wild fish stocks."

Founded in 2016, MiAlgae successfully launched its demonstrator site in 2023 based at Heriot-Watt University facilities in Edinburgh, validating the approach and setting the foundations for expansion to full commercialisation.

And now the startup has the funds in place to do just that. MiAlgae says it now plans to develop an industrial-scale production facility in Scotland, to meet the growing demand for sustainably sourced Omega-3s in aquaculture, pet food and human health sectors.

"This expansion will boost MiAlgae’s production capacity, fuel its global growth, and create new ‘green’ jobs," the company stated. "The recent funding round will finance the new facility’s development, speed up further commercialisation, and support team growth with strategic hires."

"The market is ready," say investors

“The Blue Ocean Fund targets startups tackling threats to our oceans such as overfishing, pollution, and climate change," said Christian Lim, Managing Director of SWEN Capital Partners, one of the MiAlgae's new investors. "MiAlgae’s innovative microalgae fermentation addresses the omega-3 supply gap with a scalable, sustainable alternative to fish oil. The market is ready, and we’re excited about their potential impact.”

Ali Morrow, Partner at Clay Capital, agreed, stating: “MiAlgae stands out by combining technology and market demand to address the growing need for fish oil alternatives. As fish stocks decline and prices rise, MiAlgae’s approach is poised for global impact, and we’re excited to see it unfold."

“The animal feed industry has long sought scalable solutions to reduce the industry’s reliance on wild fish. Douglas and the MiAlgae team have cracked it, with their drop-in omega-3 product. We’re excited to leverage Rabobank’s expertise and network to accelerate their impact globally," added Shishir Sinha, Director at Rabo Ventures.