This is one of the largest private investment rounds in Scotland this year, and is a vote of confidence in the ambitious prospects of the company.
Based in biotech incubator BioCity Glasgow, Scot Bio has developed a patented, reactor-based process to respond to worldwide demand for ‘clean labels’ and products free of artificial colours by providing FMCG’s with traceable, natural blue and green colourants.
This new funding will allow the company to scale up production and expand its existing team to respond to the rapidly expanding international market for natural colourants, which is expected to experience rapid growth in the next few years.
Natural blues and greens are produced using phycocyanin, an algae derived pigment which received international regulatory approval in 2013.
Phycocyanin rich algae is traditionally grown in pond systems, which are seasonal and subject to environmental contamination but Scot Bio through academic collaborations with Newcastle University and the University of Edinburgh has developed systems that are modular and scalable and capable of meeting the demand from global food manufacturers.
Following Kelvins Capital’s and Investing Women’s first round investment in 2017, the company successfully scaled up to 16,000 litres of production and developed multiple product samples and formulation solutions to major FMCG companies worldwide.
They also brought their first commercial product to market in collaboration with Leith based Firkin Gin to create Firkin Blue.
David ‘D.C.’ Van Alstyne, Scot Bio chief executive officer, said: “This is exciting news for Scot Bio and a demonstration of the high quality of our product and the exceptional team behind it.
“Our ambition is to be the world leader in the production of phycocyanin and other functional food ingredients and with our experienced board, technical and management staff and the support from our friends in academia I am confident we will do it.”
Tom Craig, Scot Bio chairman, said: “This is a very exciting business to be involved in. It has patented IP and a huge worldwide market opportunity. I am delighted to be working with D.C. and his team.”
John McNicol, Kelvin Capital Ltd director, said: “We are delighted to continue to support Scot Bio with this large follow-on round of investment, and look forward to its continued rapid progress.”
Jackie Waring, Investing Women founder and CEO, said: “We have a strong association with the great team at Scot Bio, as an investor in the business and through their successful involvement in our AccelerateHER Awards program.
“We are therefore delighted to continue our support in this latest round of funding which will help the company further develop its unique product and realise its huge global potential.”