Funding Round attributes
Swedish Algae Factory, a biotechnology company specializing in diatom-based materials, has raised €3 million in a funding round to scale production of its sustainable Algica product. The investment was led by existing investor Chalmers Ventures, with participation from other new and existing backers. The funds will support the expansion of the company’s production facility in Western Sweden and meet growing demand for its patented Algica material across industries such as cosmetics, green chemicals, and energy storage.
Founded to harness the unique properties of diatoms—microscopic algae responsible for producing approximately 20% of Earth’s oxygen—Swedish Algae Factory extracts silica shells from these organisms to create Algica. Diatom silica shells possess light-altering, absorptive, and light-blocking capabilities, making them suitable for advanced applications. Algica is currently used in over 60 personal care products globally, particularly in skincare and cosmetics, where its light-reflective properties enhance product performance.
CEO and co-founder Sofie Allert highlighted the company’s sustainable production model: “We operate an environmentally friendly factory using recycled nutrients and carbon dioxide for algae growth. Our organic by-products are converted into biogas and eco-fertilizers, with future potential applications in animal feed, food, and additional cosmetics.” The expansion aims to increase output while maintaining circular production practices, aligning with global sustainability goals.
Jonas Bergman, Investment Director at Chalmers Ventures, noted Swedish Algae Factory’s progress: “The company has achieved remarkable scalability and revenue generation ahead of typical deep-tech timelines. Their focus on replacing harmful chemicals with green alternatives aligns with our investment priorities.” The investor’s emphasis on green chemistry underscores the broader industry shift toward eco-friendly materials.
Algica’s versatility positions it as a multi-sector solution. Beyond cosmetics, the material’s applications in energy storage and environmental technologies highlight its potential to contribute to decarbonization efforts. The funding will enable Swedish Algae Factory to explore these markets while solidifying its presence in existing sectors.
The company’s growth reflects increasing demand for sustainable alternatives in manufacturing. By leveraging diatoms’ natural properties, Swedish Algae Factory aims to reduce reliance on synthetic materials, offering a renewable resource that supports circular economy principles. With the expanded facility, the company is poised to meet international client needs while advancing research into new uses for diatom-derived products.
This investment underscores confidence in biotechnology’s role in addressing environmental challenges. As industries seek compliant, scalable solutions, Swedish Algae Factory’s innovative approach provides a template for integrating ecological balance with industrial efficiency. The continued development of Algica demonstrates the commercial viability of sustainable materials in high-tech applications, setting a precedent for future innovations in the green chemistry sector.
