Omega-3 pioneer prepares to scale up

A Scottish-based biotech company looking to develop a new source of natural omega-3 is planning to expand after raising £14m in funding.

MiAlgae uses nutrient-rich by-products from the whisky industry to grow microalgae which are a source of omega-3, a crucial ingredient in aquafeed.

The company hopes that using alternative sources like this will reduce the aquaculture sector’s reliance on wild-caught fish as a source of omega-3.

The latest funding round, which was oversubscribed, brought in new venture capital investors SWEN Blue Ocean, Clay Capital, and Rabo Ventures as well as the company’s  existing backers Equity Gap, Old College Capital, Social Investment Scotland (SIS) Ventures, Ananke Ventures, Ascension Ventures, and Scottish Enterprise.

MiAlgae’s demonstrator site, in Edinburgh, launched in 2023 and MiAlgae is now gearing up to take the next step with the development of an industrial scale production facility in Scotland. The new site will enable full commercialisation of its product NaturAlgae, meeting rising demand across the aquaculture, pet food, and human health sectors for sustainable Omega-3s. This expansion will boost MiAlgae’s production capacity, fuel its global growth, and create new “green” jobs.

Douglas Martin, MiAlgae

“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, attracting serious international support. With this backing, we’re focused on building the infrastructure needed to meet the growing global demand for sustainable Omega-3s whilst continuing to advance innovation in biotechnology.”

Christian Lim, Managing Director of SWEN Capital Partners, said: “The Blue Ocean Fund targets startups tackling threats to our oceans such as overfishing, pollution, and climate change.  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, commented: “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.”

Shishir Sinha, Director at Rabo Ventures, said: “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.”