Edinburgh-based biotech startup MiAlgae has secured an additional £2.3m in investment, creating 10 new jobs in the process.

Established in 2016, MiAlgae has created a solution to producing a sustainable source of Omega-3 for animal and human consumption – something which is currently produced by extracting the oil from billions of wild caught fish.

Championing the circular economy, the company has developed a novel biotechnology platform which uses low-value coproducts from the food and drink industry as a feedstock to initially grow microalgae rich in Omega-3 oils.

Plans are already in place to commercialise other high-value compounds and pigments through expansion of the platform.

The Conduit Impact Fund managed by Ascension led the round, investing £900,000, with new investor SIS Ventures putting forward £350,000.

Having already previously invested, Equity Gap, Old College Capital and Scottish Enterprise all committed to additional funding, totalling over £1m. The investment builds on the £850k of grant funding recently secured from Zero Waste Scotland and Scottish Enterprise.

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The £2.3m investment will support the company in its growth plans which include the completion of a commercial demonstrator facility near Stirling which will drive MiAlgae’s expanding commercial traction.

Initially the company is focused on the pet food sector with an eye on expansion into the aquaculture sector in the near future. Aquaculture is the largest consumer of fish oil produced globally which is used in fish feed.

The investment will also help grow the team at MiAlgae and increase its expertise. 10 new posts, including a head of engineering and commercial director, will be created.

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Douglas Martin, managing director at MiAlgae, said: “It’s incredibly exciting to know that our investors see value in the biotechnology platform we’ve developed to tackle the production of omega-3 oils in a commercially viable way.

“Our commercial demonstrator plant, due to be completed early in 2023, will help us improve food security globally, while our research department continues to drive the development of exciting, commercially viable biotech innovations.”

Rob Halliday, senior investment manager at SIS Ventures, said: “MiAlgae is a great addition to our multi-award winning portfolio of innovative mission driven businesses. We believe in MiAlgae’s mission to become a world leader in biotechnology for good.”