Phycom, a leading microalgae ingredient producer based in Veenendaal, the Netherlands, has announced a fresh funding round of €1.75M from ROM Utrecht Region, along with a private investor. This investment follows a €9M funding round five months prior, involving Corbion, Phase2.earth, Invest-NL, and Invest International, bringing Phycom’s total funding to over €10.5M.
Phycom is honored to receive the endorsement from ROM for its microalgae production, which aims to contribute to the health of people and animals. The company plans to use the funds to optimize technology, scale up microalgae production, and expand sales. This investment comes at a time when the primary food production industry is increasingly exploring sustainable food options and alternative protein sources, with microalgae standing out for its sustainability gains and health benefits.
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Pioneering in Economically Viable Microalgae Production
Founded in 2008, the startup has developed an economically viable and scalable production method for high-quality microalgae, marking a significant breakthrough in the industry. The company empowers food-producing companies with innovative algae ingredients and enhances specialty production in the feed industry through algae’s functional properties. Currently, Phycom services the B2B food and feed industry with microalgae products and cultivation optimization services.
Collaborating with Wageningen University and Research
Phycom is involved in projects that study algae’s functionality, market applicability, and product applications, partnering with institutions like Wageningen University and Research. The company’s modular system cultivates multiple microalgae species simultaneously, ensuring high-yield output and continuous availability of nutritious food ingredients. The fully closed system minimizes environmental impact and guarantees year-round production.
Expanding Production Facilities in Veenendaal
In the past four years, Phycom has built two production facilities in Veenendaal, demonstrating the scalability and feasibility of its microalgae production technology. CFO Willem Kuijsten expressed confidence in the potential of the company and its algae products, highlighting the funding from ROM Utrecht Region as a boost to strengthen Phycom’s proposition, organizational growth, and go-to-market strategy.
Supporting a Healthy, Sustainable, and Safe Veenendaal
Marco Verloop, alderman of the municipality of Veenendaal, commended the investment by ROM Utrecht in Phycom, aligning with the city’s environmental strategy to foster a healthy, sustainable, and safe community. The investment fits within Veenendaal’s ambitions to improve its location policy, business climate, and employer services.
ROM Utrecht Region’s Commitment to Innovation
ROM Utrecht Region, a social investor, increases access to capital for innovative companies in the region, focusing on digital, health, and sustainability sectors. The investment in Phycom is made out of the Participation Fund, supported by co-financing from the Province of Utrecht and the European Regional Development Fund (ERDF). Juri van Dolderen of ROM Utrecht Region praised Phycom’s role in the protein transition, highlighting its potential to significantly reduce the food industry’s footprint.
With this additional funding, the company is set to further its mission of improving and strengthening food availability and quality through innovative microalgae solutions, contributing to a more sustainable and nutritious future.
