Introduction:
Danish industrial biotechnology startup Cellugy has raised €4.9 million in seed financing to scale up its bio-fabricated dry cellulose production platform. The funding will be used to replace fossil-based petrochemical ingredients in personal care products. Cellugy’s platform harnesses the power of bacteria to produce high-purity, crystalline cellulose derived from the bioconversion of sugar. This provides a fully bio-based and biodegradable alternative to carbon-intensive petrochemicals, which is in high demand in the natural and organic cosmetics market.
- The seed financing round is led by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with new US investor Joyance Partners and existing investors PSV DeepTech, The Footprint Firm, and EIFO also participating.
- The funding will accelerate the deployment and commercialization of Cellugy’s EcoFLEXY pilot-scale fermentation platform, as well as support further product co-development partnerships.
- Cellugy’s platform uses cellulose-producing microorganisms to produce high-purity, crystalline cellulose derived from the bioconversion of sugar.
- The bio-based and biodegradable cellulose is a drop-in alternative to carbon-intensive petrochemicals and can be easily scaled up and used in existing infrastructures.
- The global cosmetics market is expected to reach US$415.29 billion by 2028, with increasing demand for natural and sustainable formulations.
Conclusion:
Cellugy’s seed financing will enable the company to scale up its bio-fabricated dry cellulose production platform and meet the demand for bio-based and biodegradable alternatives in the personal care industry. The funding will also support the company’s expansion into new application areas and help further develop its intellectual property portfolio. With the growing focus on health and sustainability, consumers are increasingly seeking natural and environmentally friendly cosmetics, making Cellugy’s platform a promising solution for the industry.
