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Algal Scientific Gets $3M for Biotechnology Commercialization

May 15, 2014

Algal Scientific Corp., a biotech developer and manufacturer of algae-based chemicals and a supplier of related technologies for the food and beverage industries, announced that it has completed a $3 million financing led by Evonik Ventures, Formation8 Partners, and Independence Equity.

"The completion of this funding allows us to begin the commercial scale production and sale of Algamune, the company's brand of algae- based beta-1,3-glucan, a valuable compound used in poultry, swine, aquaculture and other livestock production, human foods, and nutraceuticals in order to support a healthy immune system," said CEO and Chief Science Officer, Geoff Horst. He explains "Beta-1,3- glucan has been researched for years, but until now it has been too expensive for most livestock applications. Our product can provide higher efficacy and consistency than ever before, with a lower cost, and offers a real alternative to the overuse of antibiotics in food production. We are excited to partner with our lead investors.

"Algal contributes toward sustainable animal nutrition," says Dr. Bernhard Mohr, head of Evonik Venture Capital. James Zhang, joining the board from Formation 8 added, "In order to meet the demand of a growing middle class, China has an ever increasing need of meat and milk products. Algal Scientific's product is a great fit for China and other developing Asian countries."

Formation8 is a venture capital firm that provides financial and strategic capital to early growth smart enterprise and energy technology companies.

Within its venture capital activities Evonik Industries, a provider in specialty chemicals, plans to invest a total of EUR100 million in highly promising start-ups with break-through technologies and specialist venture capital funds.

Independence Equity I, LP is an early-stage venture capital fund focused on technologies that improve resource utilization. These include technologies that reduce input costs such as raw materials, energy and labor, improve yield in production processes, or decrease waste or scrap.

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