Algal Scientific Corporation, a biotech developer and manufacturer of algae-based chemicals serving the animal health, human health and water treatment market, has closed a Series B funding round on $7 million.
The round was led by Formation 8, a California-based venture capital firm which also hasa presence in Korea, Singapore and China. Other investors include Evonik Industries, a German speciality chemical company, and Independence Equity, an early-stage venture capital fund focused on technologies that improve resource utilisation. All three investors have previously invested in Algal.
The closing of Series B funding bring the total amount raised by the company to more than $10 million, according to the press release. Algal plans to use the funding to dedicate more resources to addressing and overcoming the global overuse of antibiotics, especially in food supply.
“There is no question that antibiotic resistance is a problem that is only going to get worse unless significant changes are made to the way we utilise antibiotics,” said Geoff Horst, chief executive at Algal Scientific, in a statement. “We are thrilled that Formation 8, Evonik, Independence Equity and our other investors have had the foresight to get ahead of this growing issue by showing their support for Algal Scientific’s vision.”
The company raised $3 million in Series A funding in April 2014 with the same investor base, Agri Investor learned. In 2012, Algal won a $500,000 cash grand prize at the Accelerate Michigan Innovation Competition. Algal currently has no plan to raise any more funds.