Plant-based material science company Algenesis has raised $5 million in a funding round led by First Bight Ventures, a Texas-based fund dedicated to advancing synthetic biology companies, and Circulate Capital, an environmental impact investor.

Algenesis has patented a technology, called Soleic, that produces bio-based and fully biodegradable polyurethane (PU) from raw materials extracted from algae and non-foodplants, replacing petroleum-based PU. The bioplastic is third-party certified to have 52% bio-content. The company is working to bring the bio-content to 98%.

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. Its production process further leads to up to 50% lower GHG emissions compared to petroleum PU, according to a Life Cycle Assement 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, and to scale production and commercialization.

The technology was developed by three scientists from UC San Diego, along with a team of PhD students and Post-doctoral fellows, for over 5 years. One of Algenesis’ early products was a rigid PU foam for surfboards.

First Bight Ventures and Circulate Capital led the seed round; MIH Capital, Diamond Sports Group and RhinoShield also participated. The investment follows a $5 million grant from the U.S. Department of Energy to scale up the production of biobased isocyanates from algae oils, used to manufacture thermoplastic polyurethanes.

Source: Algenesis