US kelp-based yarn-maker AlgiKnit nets USD 13 million in funding
AlgiKnit, a biomaterials company creating design and manufacturing materials out of kelp, has raised USD 13 million (EUR 12.4 million) in a Series A funding round.
Founded in 2017, Morrisville, North Carolina, U.S.A.-based AlgiKnit's fundraising round, which closed on 29 June, was led by an investment from Collaborative Fund and joined by H&M CO:LAB, the investment arm of H&M Group, Starlight Ventures, Third Nature Ventures, Horizons Ventures, SOSV, and Aqua-Spark. The company has now raised USD 17.9 million (EUR 17.1 million) in total from investors.
The funding will be used to expedite the scaling of AlgiKnit’s kelp-based yarn production, which the company said has the ability to lower the textile industry’s environmental impact.
“With the opening of our new facility in the Research Triangle area of North Carolina, we are focused on expanding our production capabilities, partnerships, and team to address global demand more quickly,” AlgiKnit Co-Founder and CEO Tessa Callaghan said in a press release. “This is a huge next step in bringing this technology to scale, and creating positive, tangible change for the planet. We are so excited to partner with new and existing investors who share our vision for transforming the fashion ecosystem.”
AlgiKnit is also developing fibers for use in other industries including fashion, interiors and furnishings, and the automotive sector. In June 2022, it opened a manufacturing facility in North Carolina’s Research Triangle area June.
"The textile industry is responsible for as much as 8 percent of the world's CO2 emissions – in addition to being massively polluting and water-intensive. We're thrilled to be leading AlgiKnit's Series A round, and to be investing in a technology that is pushing the world towards a more sustainable future,” Collaborative Fund Partner Sophie Bakalar said.
Photo courtesy of AlgiKnit