Recently, Cellugy, a Danish industrial biotechnology start-up, has successfully raised EUR 4.9 million in seed funding to scale up the production of its innovative EcoFLEXY dry cellulose product. This funding round was spearheaded by Germany’s ICIG Ventures and Denmark’s Unconventional Ventures, with additional support from new U.S.-based investor Joyance Partners, and continued backing from existing investors PSV DeepTech, The Footprint Firm, and EIFO.
Cellugy aims to replace fossil-based materials in various industrial applications with its natural, biofabricated cellulose-based solutions. The fresh capital injection will enable the company to transition from pilot phase to full-scale industrial production, increasing their output from mere kilos to several tons annually. This expansion is crucial to meet the rising demand for sustainable, high-performance ingredients in the personal care industry.
Dr. Isabel Alvarez-Martos, CEO and co-founder of Cellugy, highlights the urgent need to move away from petrochemical ingredients, emphasizing that the future of personal care lies in biobased, biodegradable, and biofabricated components. EcoFLEXY, she notes, not only offers a green alternative but also boasts a unique production process. Unlike other sustainable cellulose options that require extraction from plants—often involving high energy and chemical use—EcoFLEXY is produced through fermentation. This method eliminates the need for deforestation or harvesting and avoids harsh chemical processes, making it a truly eco-friendly product.
Dr. Alvarez-Martos envisions that this funding will not only scale up EcoFLEXY’s production and distribution but also catalyze broader adoption of sustainable practices in the personal care industry.
