THE WHAT? Cellugy, a Danish biotechnology startup, has successfully raised €4.9 million in seed funding to expand the production of EcoFLEXY, its innovative cellulose-based product designed to replace fossil-based materials. This funding round was led by ICIG Ventures and Unconventional Ventures, with new investment from Joyance Partners and continued support from PSV DeepTech, The Footprint Firm, and EIFO.
THE DETAILS The newly secured funds will accelerate the scale-up of EcoFLEXY from pilot phase to industrial volumes, transitioning production from kilos to several tons annually. This expansion aims to meet increasing customer demand and foster further product co-development partnerships. The initiative aligns with the growing market trend towards sustainable and biodegradable ingredients in the personal care industry, driven by consumer demand for eco-friendly products.
EcoFLEXY is a fully bio-based and biodegradable alternative to petrochemicals, produced using a unique platform technology that leverages cellulose-producing microorganisms to convert sugar into high-purity crystalline cellulose. This sustainable approach addresses environmental concerns associated with petrochemical ingredients, such as pollution, carbon emissions, and potential health risks.
“Our mission is to develop sustainable solutions for everyday products, so we’re naturally pleased to partner with impact-driven investors,” said Dr. Isabel Alvarez-Martos, CEO and co-founder of Cellugy. “With our technology, we genuinely see a future completely free from these polluting ingredients.”
The global cosmetics market is projected to reach USD 415.29 billion by 2028, with a notable increase in demand for natural and organic products. Cellugy’s EcoFLEXY provides a scalable, high-quality alternative that meets the performance and cost criteria required by the personal care industry.
THE WHY? Cellugy’s funding round underscores a significant move towards sustainable innovation in the cosmetics industry. By replacing petrochemicals with bio-based alternatives, Cellugy addresses critical environmental and health concerns. The company’s commitment to expanding its manufacturing capacity and forging new partnerships reflects a broader industry shift towards sustainability and responsible ingredient sourcing. This initiative not only supports Cellugy’s growth but also promotes a healthier and more ecological future for personal care products.
