An Indianapolis-based biotech company plans to use $2.75 million in new funding to begin commercial production of its algae-based nutritional supplements, the firm announced Monday.
Algaeon Inc. will move into an acre of greenhouse space owned by Heartland Growers at 2621 E. 186th St., in Westfield. There, the 18-employee firm plans to install more than 800 of its bioreactors, which are the devices that produce algae.
Founded in 2008, Algaeon has supported itself on seed funding while using a 0.10-acre of greenhouse space at 8440 W. 82nd St. to develop two main products. The recent investment will let Algaeon begin fulfilling contracts and generating revenue, said Mike Neibler, the company’s vice president of business development.
The company in June will begin selling antioxidant supplement Astaxanthin. Immune system booster Beta glucan will hit the market later this year.
Algaeon markets Astaxanthin as a prevention for eye, heart and brain degeneration, as well as an anti-inflammatory for joints. Beta glucan replaces antibiotics in animal feed.
Last year, the company signed a “multi-year, multimillion-dollar” contract with Florida-based supplement manufacturer Valensa International to produce Astaxanthin. Valensa will also be among a handful of companies producing Beta glucan, Neibler said.
Algaeon has gone through three prior rounds of funding that raised a total of $2 million, with the last round wrapping up in January 2013.
City Securities Corp. and BioCrossroads’ Indiana Seed Fund II returned as investors to the latest round. New investors included Bromet Capital Partners and several unnamed contributors.
Algaeon said it formed a strategic partnership with Heartland Growers that will provide it with greenhouse-operations expertise and expansion potential. Heartland operates 25 acres of greenhouses at the site.