Danish Industrial Biotechnology Startup Cellugy Raises €4,9M to Revolutionize Personal Care Industry
In an ambitious move towards sustainability, the Danish industrial biotechnology startup, Cellugy, has announced the successful closure of a €4,9M seed funding round. The fund will primarily be utilized to scale up the production of its innovative EcoFLEXY dry cellulose product to industrial volumes. The financing round saw participation from notable investors including Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with the addition of new, U.S.-based investor Joyance Partners, alongside existing backers PSV DeepTech, The Footprint Firm, and EIFO.
This significant financial boost will propel the advance and commercialization of EcoFLEXY, currently in the pilot stage, towards large-scale production. With goals to increase its manufacturing from kilograms to several tons annually, Cellugy aims to meet the burgeoning demand for its products. The investments will also enhance the company’s capacity for product co-development partnerships, further broadening EcoFLEXY’s applications, IP portfolio expansion, and team growth.
The surge in sustainability commitments among leading cosmetic brands has upped the demand for natural, biodegradable alternatives like cellulose, making Cellugy’s development timely. The company ingeniously employs a platform technology that utilizes cellulose-producing bacteria. This bioconversion of sugar results in high-purity, crystalline cellulose – a promising replacement for the carbon-intensive petrochemicals widely utilized in cosmetic formulations.
Petrochemical-based ingredients, while offering desirable functional attributes in cosmetics, have been scrutinized for their environmental impacts, potential health risks, and contribution to pollution. “Today’s reliance on fossil-derived ingredients poses a significant sustainability challenge in the personal care industry,” remarks Dr. Isabel Alvarez-Martos, CEO and Co-founder of Cellugy. “We envision a future devoid of these polluting elements through our technology.”
With the global cosmetics market poised to hit USD 415.29 billion by 2028, and a shift towards more sustainable consumer products, there is a pressing need for effective, environmentally friendly alternatives. Cellugy’s ‘drop-in’ solution is remarkable for its scalability, compatibility with existing production infrastructures, and its potential to meet the performance and cost criteria set by petrochemical products.
The latest investment round enriches Cellugy’s robust financial and expert support network, signaling strong confidence in its vision for a more sustainable personal care industry. Lead investor, ICIG Ventures, emphasizes the strategic importance of their partnership with Cellugy, highlighting the potential for revolutionary impacts beyond personal care to other industries as well.
Unconventional Ventures, celebrating the diversity and innovation at the heart of Cellugy, is especially drawn to the team’s mission to forge a sustainable future. “Their groundbreaking technology could significantly disrupt not only personal care but expand to impact textiles and food industries,” shared Thea Messel, founder and General Partner at Unconventional Ventures.
Joyance Partners, known for their impactful contributions to biotech and personal care, brings to the table extensive insights that promise to enhance scaling up and commercialization efforts, bridging connections to global brands.
Dr. Alvarez-Martos envisions this funding as a cornerstone for scaling up EcoFLEXY’s production capabilities, fulfilling the rising demand for sustainable personal care solutions. The focus on co-development partnerships and expanding application areas underscores Cellugy’s commitment to leading the industry toward a more sustainable, ecologically conscious future.
By leveraging innovative biotechnology, Cellugy is not only addressing the urgent need for sustainable materials but is also paving the way for a revolution in how the personal care industry, and beyond, approaches product formulation, with the planet’s health firmly in mind.
