Funding Round

Kuehnle AgroSystems Raises $3M for Sustainable Astaxanthin Production

Kuehnle AgroSystems (KAS) has secured a $3 million Series A2 funding round led by S2G Ventures to further its development

Key Takeaways

  • Innovative Funding: Kuehnle AgroSystems (KAS) has secured a $3 million Series A2 funding round led by S2G Ventures.
  • Sustainable Production: The funding aims to accelerate the commercialization of KAS’s method for producing natural astaxanthin, enhancing sustainable aquaculture and nutraceutical markets.
  • Technological Breakthrough: KAS’s patented dark fermentation process promises lower costs, higher yields, and reduced resource usage compared to current production methods.
  • Market Impact: Addressing the transition from synthetic to natural astaxanthin could influence a market estimated at $3.7 billion, driven by consumer demand for natural products.

Funding Announcement and Objectives

Kuehnle AgroSystems (KAS), a leader in microalgal innovation, announced today that it has raised a $3 million Series A2 funding round spearheaded by S2G Ventures. This strategic injection of capital is earmarked to propel the commercialization of KAS’s ground-breaking method for producing natural astaxanthin from microalgae. This development is significant for sustainable aquaculture systems and as a nutraceutical for human consumption.

Innovative Production Method

KAS has developed a patented process that utilizes dark fermentation in closed vertical tank systems, which stands out for its sustainability and efficiency. “Our innovative production method results in lower production costs, higher yields, faster growth times, and less water and energy consumption,” said Claude Kaplan, CEO of KAS. The process aims to overhaul natural and synthetic astaxanthin production methods, offering a more sustainable alternative.

Astaxanthin: From Aquaculture to Nutraceuticals

Astaxanthin is a carotenoid known for its antioxidant properties. It is a crucial component in the diet of salmonids and shrimp, contributing to their distinctive red color. Over 50% of globally consumed seafood originates from aquaculture systems that rely heavily on synthetic astaxanthin derived from petrochemicals. KAS’s mission is to shift the industry towards natural algal astaxanthin. Kaplan noted, “Strong consumer preference for natural inputs is expected to accelerate the transition from synthetic to natural astaxanthin.”

Support and Potential Impact

Larsen Mettler, Managing Director at S2G Ventures, highlighted the transformative potential of KAS’s technology: “KAS’s fermentation breakthrough and sustainable production method have the potential to transform the natural astaxanthin market, driving better outcomes for people and the planet.” This sentiment was echoed by Lissy Smit, CEO at Aqua-Spark, an existing backer of KAS, who praised the company for its innovative solutions to the aquaculture industry’s core challenges.

Future Prospects

The funding will facilitate KAS’s partnership with a European-based production partner, enabling global distribution. It also lays the groundwork for future expansion through contract manufacturers and potentially in-house production. KAS’s process not only offers a more resource-efficient alternative but also holds the promise of creating fully circular algal products by recycling gas generated during fermentation.

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