Investment led by Ichthus Venture Capital (IVC), alongside existing investors S2G Investments, Hatch Blue and new investor, Dest EOOD, will accelerate manufacturing scale-up and strategic partnership with Corbion.
HONOLULU--(BUSINESS WIRE)--Kuehnle AgroSystems (KAS), the algal biotechnology company pioneering sustainable production of natural astaxanthin through proprietary dark fermentation technology, today announced the successful close of a multi-million-dollar Series B financing, led by IVC, with continued participation from existing investors S2G Investments and Hatch Blue and new investor Dest EOOD.
The financing is designed to accelerate KAS's transition from technology development to commercial production and sales, including supporting:
- Expansion of research and development capabilities
- Acceleration of the company's strategic development programme with sustainable food-ingredient company Corbion
- Development and validation of salmon feed products
- Global regulatory approvals for aquaculture and human nutrition markets
- Manufacturing scale-up and commercial deployment
The investment follows a landmark technical achievement earlier this year. In collaboration with its manufacturing partner, Biorea, KAS successfully demonstrated—for the first time anywhere in the world—the production of natural astaxanthin in oleoresin using proprietary dark fermentation technology at an industrially relevant scale. This breakthrough establishes the technical foundation for a step-change in the cost of production of sustainable, natural astaxanthin.
Astaxanthin is an essential ingredient in modern salmon aquaculture. Beyond providing the characteristic pink colour consumers expect, it is a critical nutrient that supports fish health, fertility, stress tolerance, immune function and overall production performance. Global demand continues to increase alongside salmon production, while the industry seeks more sustainable and resilient ingredient supply chains. KAS's fermentation platform offers the potential to provide premium natural astaxanthin with significantly lower environmental impact, improved supply security and a pathway to substantially lower production costs than conventional cultivation-based methods.
The opportunity ahead is substantial. The global astaxanthin market is valued at around US$2 billion and is forecasted to grow at 15% annually over the coming decade. Demand is being driven by two powerful trends: the continued expansion of global salmon aquaculture, where astaxanthin is an essential feed ingredient, and rapid growth in the premium nutraceutical market, where natural astaxanthin is increasingly recognised as one of the world's most potent antioxidants. KAS is uniquely positioned to address both high-growth markets through its proprietary dark fermentation platform, and this Series B financing provides the capital needed to accelerate the company's path to commercial production and global market adoption.
"This financing validates both our technology and our commercial strategy," said Dr Claude Kaplan, Chief Executive Officer of Kuehnle AgroSystems.
"Earlier this year we achieved something many believed impossible—the world's first production of natural astaxanthin oleoresin through dark fermentation. Together with our manufacturing partner, Biorea, and our strategic development partner, Corbion, we have demonstrated that fermentation can become a commercially viable route to producing one of aquaculture's and nutraceutical’s most important ingredients.
This investment enables us to accelerate manufacturing scale-up, expand our commercial partnerships and bring a truly sustainable, reliable and cost-competitive source of natural astaxanthin to the global aquaculture and human nutrition industries. We believe this technology will fundamentally reshape the natural astaxanthin market."
Strategic partnership with Corbion
A central element of KAS's commercialisation strategy is its strategic collaboration with Corbion, a global leader in algae-derived ingredients and industrial fermentation. The companies are jointly advancing process optimisation, manufacturing scale-up and commercial production, combining KAS's proprietary microalgal technology with Corbion's decades of expertise in industrial biotechnology, large-scale fermentation, regulatory development and global commercialization of ingredient solutions.
Together, the partners are establishing a robust and globally scalable manufacturing platform that combines innovative strain technology, industrial-scale manufacturing and market access capabilities to supply premium natural astaxanthin to customers worldwide.
"The successful demonstration of natural astaxanthin oleoresin through dark fermentation represents a pivotal milestone," said Yves Boland, Chief Technology Officer of Corbion.
"Corbion is delighted to continue working alongside KAS. By combining KAS's innovative biology with Corbion's expertise in strain development, industrial fermentation, product development and global market access, we believe this collaboration has the potential to significantly advance the sustainable production of natural astaxanthin."
As part of the financing, Frode Sandmark, representing IVC, will join the KAS Board of Directors.
"KAS has developed one of the most exciting biotechnology platforms we have encountered in sustainable aquaculture," said Frode Sandmark.
"Natural astaxanthin is a strategically important ingredient for salmon farming, and we see a clear opportunity for a natural, more cost-competitive, scalable and sustainable production route. KAS has demonstrated a genuine technological breakthrough with its dark fermentation platform. Combined with an outstanding management team, a strong intellectual property portfolio and world-class strategic partners, we believe the company is exceptionally well positioned to become a global leader in natural astaxanthin production. We are delighted to support the company in its next phase of growth and I look forward to joining the Board."
The new financing will enable KAS to expand its scientific and engineering teams, strengthen manufacturing readiness, complete regulatory programmes and engage with leading aquaculture and human nutrition companies as it prepares for commercial launch.
About Kuehnle AgroSystems
Kuehnle AgroSystems (KAS) is developing a new generation of sustainable microalgal ingredients using proprietary non-GMO dark fermentation technology. The company's platform enables efficient production of high-value natural compounds with dramatically lower land, water and resource requirements than conventional cultivation methods. KAS's lead product is natural astaxanthin for aquaculture, human nutrition and animal health, with the ambition of transforming the economics and sustainability of one of the world's most valuable natural carotenoids.
About IVC
IVC is the venture investment arm of Kverva, one of the world’s leading investment companies within marine and aquaculture related industries. Kverva is the largest shareholder in SalMar ASA, one of the world’s largest Atlantic salmon farming companies.
Kverva has built deep sector experience across aquaculture, feed ingredients, seafood production and adjacent ocean industries. Through IVC, it invests in and partners with ambitious entrepreneurs developing technologies and solutions with the potential to improve the sustainability, productivity and resilience of global food systems, with a particular focus on aquaculture.
IVC’s investment in KAS reflects its conviction that natural algal astaxanthin can become a more strategically relevant ingredient for the future of salmon farming, provided it can be produced at competitive cost and scale. KAS’ dark fermentation platform has the potential to improve the availability of natural astaxanthin and support more resilient and sustainable ingredient supply chains for aquaculture.
Contacts
Media Contact
Dr Claude Kaplan
Chief Executive Officer
Kuehnle AgroSystems
claude@kuehnleagro.com
+44 770 9201297
www.kuehnleagro.com
