Cellugy funding news – Biotech Startup Cellugy Secures €4.9 Million in Seed Funding

Germany's ICIG Ventures and Denmark's Unconventional Ventures led the round, which was also joined by new U.S.-based investor Joyance Partners, as well as existing investors PSV DeepTech, The Footprint Firm, and EIFO.

The funding will expedite the deployment and commercialization of EcoFLEXY, which is presently in the pilot phase. This entails a substantial annual production increase, from grammes to several tonnes. Cellugy will be able to expand its manufacturing capacity to commercial production in order to meet the growing demand of its customers, thanks to the funds that have been raised.

The funding will also be used to support additional product co-development partnerships, which will enable EcoFLEXY to expand its IP portfolio and headcount and enter new application areas.

Natural, biodegradable ingredients such as cellulose are in high demand due to the commitment of numerous prominent cosmetics brands in the personal care industry to more sustainable, environmentally conscious formulations.

Cellugy's team of scientists has created a distinctive platform technology that utilises the power of bacteria to produce high-purity, crystalline cellulose by utilising cellulose-producing microorganisms. This cellulose is derived from the bioconversion of sucrose. The platform develops biodegradable and entirely bio-based substitutes for carbon-intensive petrochemicals.

Cosmetic compositions extensively employ petrochemical ingredients derived from fossil feedstocks due to their advantageous functional characteristics. Nevertheless, these constituents have the potential to pose environmental hazards, including pollution, increased carbon emissions, and the ingestion of microplastics by humans.

These petrochemical ingredients also present potential health hazards. It is imperative for ingredient manufacturers to bridge the divide between sustainability, safety, and applicability.

Dr. Isabel Alvarez-Martos, CEO and co-founder at Cellugy said, “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, 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.”

The global cosmetics market is experiencing significant growth and is anticipated to reach USD 415.29 billion by 2028. Consumers are increasingly pursuing bio-based alternatives as they prioritise sustainability and health. It is anticipated that the natural and organic cosmetics market will experience a 9.76% compound annual growth rate (CAGR) and reach USD 50.46 billion by 2027..

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Cellugy's existing robust support is further enhanced by the most recent funding round. PSV Deep Tech, EIFO, and The Footprint Firm continue to offer financial and expertise-based support, making up nearly half of the investment round through follow-on participation from existing investors.

The CVC arm of International Chemical Investors Group, a privately owned German industrial group with market-oriented chemicals platforms and enterprises, is represented by lead investor ICIG Ventures. This group provides valuable industry-specific connections, expertise, and guidance.

Dr. Pelin Yilmaz, Investment Director at ICIG Ventures said, “Investing in Cellugy represents a strategic step for ICIG Ventures, underlining our commitment to fostering innovations that drive sustainability in the industrial sector. Cellugy’s breakthrough in biofabricated cellulose technology not only aligns with our mission to support green technology but also promises to revolutionize the personal care industry and beyond, This sustainable alternative to petrochemicals, coupled with Cellugy’s efficient business model and potential for cross-industry application, presents a compelling combination. We are particularly excited about the synergies in accompanying Cellugy in its scale-up journey. Our investment underscores our belief in Cellugy’s team, technology, and their vision for a more sustainable industry.”

Unconventional Ventures, a new investor, has also participated in the round. Cellugy's long-term mission is closely aligned with their emphasis on sustainability and social impact. Furthermore, Unconventional Ventures' commitment to releasing the potential of diverse founding teams and underrepresented groups behind impact tech companies is indicative of Cellugy's fundamental principles of empowerment and diversity.

Thea Messel, founder and General Partner at Unconventional Ventures said, “When meeting Isabel, Paruntungan, and Deby we were particularly impressed with their unified mission of creating a sustainable alternative to petrochemical ingredients. Their groundbreaking platform technology has the potential to revolutionize not only the personal care industry, which is sorely in need of more sustainable alternatives, but could also disrupt industries like textiles and food, As an impact investor, seeing the founders’ determination to translate outcomes of scientific research into innovative commercial products with significant sustainability gains really stood out to us, and we are proud to be backing them on their growth journey ahead.”

Joyance Partners, a new investor, possesses a robust portfolio in the biotech and personal care sectors and offers profound insights into commercialization and scaling strategies. Additionally, it has valuable CPG connections that enable it to access global branded consumers.

Alvarez-Martos explained, “This investment round will be instrumental in scaling up EcoFLEXY’s production and distribution, allowing us to meet the surging demand for sustainable, high-performance beauty ingredients, It will also fuel further product co-development partnerships for EcoFLEXY, allowing us to unlock its full potential and develop new application areas within this target market. By promoting sustainable materials choices and innovative production processes, we see ourselves as also enabling the innovation of others, leading the way to healthier, more ecological solutions that are both skin and planet-friendly.”

About Cellugy

Søborg-based Cellugy, a Danish biotech firm, which has aspirations to expand globally. From cellulose, the most abundant building element in nature, they developed superior material. Progress is the result of the emergence of smaller components, which collide to generate collective momentum and create something far more powerful than the sum of its parts, similar to in biotechnology.