Cellugy, a Danish industrial biotechnology startup has raised €4.9m ($5.3m) in seed funding to scale up production of its EcoFLEXY dry cellulose product designed to replace fossil-based petrochemical ingredients in personal care products.
The funding will accelerate the deployment and commercialization of EcoFLEXY, currently in the pilot phase.
This involves a substantial production increase, from kilos to several tonnes per year.
The funding will also support further product co-development partnerships to take EcoFLEXY into new application areas and expand the company’s IP portfolio and headcount.
The round was led by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with new, US-based investor Joyance Partners joining the round, along with existing investors PSV DeepTech, The Footprint Firm, and EIFO.
Cellugy’s team of scientists has developed a unique platform technology that harnesses the power of bacteria, leveraging cellulose-producing microorganisms to produce high-purity, crystalline cellulose derived from the bioconversion of sugar.
The platform creates fully bio-based and biodegradable alternatives to carbon-intensive petrochemicals.
Cellugy says it is providing a “drop-in” alternative to petrochemicals, which is easily scalable, fits within standard equipment, and can be used in existing infrastructures.
“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,” she added.
