MiAlgae, a startup in Scotland looking to revolutionize the global livestock feed industry by producing low cost microalgael nutritional supplements through remediating wastewater from the whisky distillation process, has secured £500,000 in funding. The funding came in equal parts from business angel group Equity Gap, the Scottish Investment Bank, and the University of Edinburgh’s venture fund Old College Capital. Founder Douglas Martin was a Masters candidate at the university when he started the company.

The funding will be used by the company to expand its team and build a pilot plant for its technology at a whisky distillery. MiAlgae initially plans to target the aquaculture industry but sees other applications as well.

“We’re looking at multiple industries in the supply side, multiple industries at the product side, then diversification into multiple products beyond feeds,” said Martin in a press release. “There are lots of things we can do with our products.”

The combination of increased consumer demand for protein and pressure on wild stocks has made aquaculture an attractive bet for investors lately. The global aquaculture market is expected to reach $209.42 billion by 2021, which represents a CAGR of 5 percent, according to Zion Market Research.

Last week saw the announcement of two deals in Chile worth a  combined US$500 million; and in April, Dutch feed specialist Nutreco and Omnivore Partners led a Series B for Eruvaka Technologies, which provides solar powered connected devices and decision making tools for shrimp and fish farmers.

Another emerging company looking to innovate the aquaculture feed segment is KnipBio, which is testing a range of methylobacterium-based feed solutions that can be aimed at specific fish species and markets.

David Nitchman, GAI Media