Cellugy Raises €4.9 Million in Seed Funding to Scale Up Production of Eco-Friendly Cellulose-Based Solutions
Cellugy, a Danish industrial biotech startup based in Søborg, has raised €4.9 million in seed funding to scale up production of its EcoFLEXY dry cellulose product to industrial volumes. The round was led by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with new, U.S.-based investor Joyance Partners joining the round, along with existing investors PSV DeepTech, The Footprint Firm, and EIFO.
The funding will enable Cellugy to substantially increase its production capacity, from kilos to several tons yearly, to satisfy extensive and increasing customer demand. The company will expand its manufacturing capacity to commercial production, moving from the pilot phase. The funds will also support further product co-development partnerships to take EcoFLEXY into new application areas and expand the company’s IP portfolio and headcount.
In the personal care industry, many leading cosmetics brands pledge commitment to more sustainable, environmentally conscious formulations, placing natural, biodegradable ingredients like cellulose in high demand. Cellugy’s unique platform technology harnesses the power of bacteria, leveraging cellulose-producing microorganisms to produce high-purity, crystalline cellulose derived from the bioconversion of sugar. This platform creates fully bio-based and biodegradable alternatives to carbon-intensive petrochemicals.
Cellugy is developing innovative, natural, biofabricated cellulose-based solutions to replace fossil-based materials in various industrial applications. The company’s team of scientists has developed a platform technology that produces high-purity, crystalline cellulose, which can be used as a sustainable alternative to petrochemicals in personal care and other industries.
The successful seed funding round will enable Cellugy to scale up production, expand its partnerships, and further develop its technology to meet the growing demand for eco-friendly, biodegradable materials in various industries.
Because of their desired functional qualities, petrochemical compounds derived from fossil feedstocks are widely employed in cosmetic compositions. Nevertheless, these components may be hazardous to the environment due to contamination, higher carbon emissions, and even ingestion of microplastics by humans.There may be health hazards associated with certain petrochemical compounds. Therefore, it is imperative that ingredient makers bridge the gap between safety, application, and sustainability.
“Reliance on fossil-based petrochemical ingredients is today’s most critical sustainability issue in producing personal care products. With our technology, we genuinely see a future completely free from these polluting ingredients,” said Dr. Isabel Alvarez-Martos, CEO and co-founder at Cellugy. “Our mission is to develop sustainable solutions for everyday products, so we’re naturally pleased to partner with impact-driven investors. Together, we can achieve those goals.”
By 2028, the rapidly expanding worldwide cosmetics market is predicted to reach a value of USD 415.29 billion. Customers are looking more and more for bio-based substitutes as health and sustainability become more important concerns. At a compound annual growth rate (CAGR) of 9.76%, the market for natural and organic cosmetics is expected to reach USD 50.46 billion by 2027.
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