Leading plant-based material science company Algenesis Corporation has raised US$5M in a funding round led by First Bight Ventures, with Circulate Capital and others. A developer of bio-based plastics that are competitive with petroleum-based in both cost and functionality, Algenesis’ patented Soleic technology is claimed to be the world’s first renewable, high performance, fully biodegradable and backyard compostable bioPolyurethane (bioPU) made from plants and algae.
Today, 25 million tons of Polyurethane (PU) are manufactured annually (6% of total plastics) for extensive use across footwear, medical, and textile industries, according to Statista. Due to the material’s composition, PU is hard to recycle and primarily ends up in landfills or as microplastics in the environment.
Unlike petroleum-based PU, Algenesis’ Soleic bioPU can biodegrade in compost within a matter of months and does not contain harmful PFAS chemical additives found in other plastics, the company said. Its production process further leads to up to 50% lower GHG emissions compared to petroleum PU, it said quoting a life cycle assessment analysis carried out by Algenesis.
“We are excited to take this next step in our growth journey, and this funding will support us to scale production and meet the growing demand for Soleic PU systems,” said Steve Mayfield, founder and CEO of Algenesis.
Algenesis’ Soleic PU is currently available in soft foam applications, such as midsoles and insoles for footwear. The new funds will be used to expand Soleic product lines into breathable waterproof textiles, and injection molded products such as phone cases. The company also plans to expand and strengthen its supply chain by bringing more of its processes in-house, to scale production and commercialization of these materials that are increasingly in demand by a variety of consumer-facing brands, further cementing their position as a leader in eco-innovation.
First Bight Ventures and Circulate Capital led the seed round; MIH Capital, Diamond Sports Group and RhinoShield also participated. The investment follows a US$5M grant from the US Department of Energy to scale up the production of biobased isocyanates from algae oils using a safe and green-flow chemistry process, as the company continues to work towards evolving their product to be 100% biobased.
“We invest in Industrial BioManufacturing and Algenesis is an excellent representation of new companies creating a highly demanded product, such as bioPU, that come from Biology versus Petroleum. This is a win for the industry, sustainability, and the world,” said First Bight Ventures founder Veronica Wu. “To save our planet and ourselves, we must move away from petroleum-based plastics and toward bio-based alternatives. Algenesis is clearly at the forefront of making this possible.”
Rob Kaplan, founder and CEO of Circulate Capital, said: “We are thrilled to add Algenesis to Circulate Capital’s Disrupt portfolio, which targets breakthrough innovations advancing circularity. As global brands commit to driving circularity in their products, we see huge potential for Algenesis to meet this market opportunity with their innovative new materials.”
Based in Houston, First Bight Ventures is an early-stage fund dedicated to advancing and accelerating synthetic biology companies. Circulate Capital is a leading environmental impact investor advancing the circular economy for plastics in high-growth markets.
