KAS Announces $3M Funding Round to Expand Production of its Natural Algae Astaxanthin
Company's innovative approach enables high-quality natural algae astaxanthin production at faster and more affordable rates
New funding will support company plans to reach commercialization this year
HONOLULU, March 13, 2024 /PRNewswire/ -- Kuehnle AgroSystems ("KAS"), a leading microalgal innovation and production company, today announced that it has raised a $3 million Series A2 funding round led by S2G Ventures. The funding will accelerate the commercialization of KAS's pioneering method for producing natural astaxanthin from microalgae, a key component in sustainable aquaculture systems as well as a clinically proven human nutraceutical.
KAS has patented an innovative process that uses dark fermentation in closed vertical tank systems to produce high-quality natural algae astaxanthin. Utilizing a more sustainable feedstock and production method than current natural and synthetic astaxanthin production methods, KAS's process results in lower production costs, higher yields, faster growth times, and less water and energy consumption.
Astaxanthin is a carotenoid with antioxidant properties present in natural aquatic algae, which is consumed by salmonids and shrimp and gives these species their characteristic red color. In aquaculture systems, which produce over 50% of the seafood we eat globally, astaxanthin is incorporated to provide similar pigments. However, 95% of astaxanthin currently used in aquaculture feed is synthetic and derived from petrochemicals. KAS aims to replace synthetic with natural algal astaxanthin, addressing a market that is estimated to be valued at around $3.7 billion.
"Strong consumer preference for natural inputs is expected to accelerate the transition from synthetic to natural astaxanthin," said Claude Kaplan, chief executive officer of KAS. "With our ability to generate greater astaxanthin output volumes, quicker and at a reduced cost compared to light-dependent methods, this funding strongly positions KAS to respond to the rapidly expanding needs of the market."
"KAS's fermentation breakthrough, natural strain development process, and sustainable production method all have the potential to transform the natural astaxanthin market, a key input for more sustainable aquaculture practices that can drive better outcomes for people and the planet," said Larsen Mettler, Managing Director at S2G Ventures. "We are proud to be part of KAS's journey and look forward to supporting the impact they are poised to make in the market."
Existing backers of KAS include Aqua-Spark, Hatch and Cavallo Ventures.
"We continue to be impressed by the KAS team's capacity to leverage their scientific and commercial knowledge to produce a truly innovative solution for replacing synthetic with natural astaxanthin," said Lissy Smit, CEO at Aqua-Spark. "As the aquaculture industry continues to grow at a rapid pace, we need more companies like KAS that are solving core challenges in the value chain to ensure our food system is healthier and more sustainable for consumers and the planet."
KAS will initially launch with its European-based production partner with the capacity to distribute globally. This new funding will enable KAS to exploit its ability to use standard fermentation equipment, to swiftly expand production through leveraging contract manufacturers, with the option to bring production in-house in the future. And while KAS' process is inherently more resource efficient than competitors, the company's technology also holds future potential for recycling the gas generated during fermentation to produce feedstock to be fed back into the fermentation process creating fully circular algal products.
About KAS:
Kuehnle AgroSystems, Inc. (KAS), founded in 2007, is a Hawaii-based microalgae development company with a world-class team of professionals. KAS uses its extensive library of Hawaiian microalgal strains to research, develop and produce specialty chemicals and raw materials to make life better. Our customers include multinational corporations along with valued regional companies and brands that require sustainable plant-based ingredients for animal feeds, human health, food, and personal care. Industrial fermentation allows our ingredients to be cultured at lower cost with highest efficiency and quality, and enables rapid access to markets by ourselves and our partners. Learn more at kuehnleagro.com.
About S2G Ventures:
S2G Ventures partners with entrepreneurs who are working on solutions to some of the world's greatest challenges across the food, agriculture, oceans, and energy markets. The firm provides capital, mentorship, and value-added resources to companies pursuing innovative market-based solutions that generate positive social, environmental, and financial returns. S2G structures flexible capital solutions that can range from seed and venture funding through growth equity to debt and infrastructure financing. For more information about S2G, visit s2gventures.com or connect with us on LinkedIn.
Media Contact:
Chelsea Hokenson
[email protected]
SOURCE Kuehnle AgroSystems
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