November 30, 2024

By Gerelyn Terzo, Global AgInvesting Media

Cascadia Seaweed, a British Columbia-based processor of seaweed-derived ag products, has raised C$4 million (US$2.8 million), marking the first close of a Series A funding round. Representing both new and returning investors, the roster of backers included WWF Impact, Vere Ventures, Potato Impact Partners, VertueLab Climate Impact Fund, Realize Impact, the Real Estate Foundation of British Columbia and Norfolk Green Ventures, among others.

Cascadia plans to direct the proceeds toward a host of activities, including the development of a commercial-scale seaweed biorefinery on the West Coast as well as bolstering its biomass production while expanding the sales and marketing of its liquid kelp extracts, biostimulants and livestock products. Over the past half decade, Cascadia has attracted over C$18 million (US$12.8 million) in equity and non-dilutive capital, supporting its mission to build technologies for its value chain while creating regenerative products for crops and livestock, leading to better outcomes for farmers dealing with the impact of climate change.

Cascadia Seaweed CEO Michael Williamson stated on LinkedIn, “Very pleased to be able to announce this. It’s a testament to the hard work of the team, the support of our First Nations partnerships and proof that cultivated seaweed-derived biostimulants and liquid kelp extracts are in demand in the agricultural marketplace. Thank you to our investors and colleagues.”

Farmers are facing a perfect storm of shrinking arable land, degraded soils and higher input costs, all exacerbated by regulatory requirements to lower emissions. Cascadia Seaweed seeks to address these headwinds through its ag products derived from seaweed, including liquid kelp extracts made from nutrient-dense brown seaweeds. The company harnesses local seaweed species to produce products for both crop and cattle farmers.

Emerging technologies are looked to as part of the solution for greenhouse gas emissions and strengthening food security amid climate-related challenges such as changing patterns in precipitation and temperatures as well as other stressors. Seaweed-based biostimulants and livestock feed supplements deliver natural and scalable solutions to these issues, decreasing the industry’s dependency on chemical products while lowering ag-related emissions. Ocean-cultivated seaweed is known to improve the oceans in which it is cultivated.

Cascadia Seaweed CFO Robert Napoli spent some time with GAI News to share further details about the fundraising and the company’s future plans.

1.) GAI News: Could you describe the fundraising environment for agtech currently? It seems like Cascadia Seaweed received a positive response from the investor community.

Napoli: The fundraising environment continues to be challenging, from what we have heard from our accelerators and advisers. In agtech, the fact that commodity prices are down and interest rates remain high makes it even harder as growers are less willing to spend on innovation. Having said that, there are bright spots, such as biologicals, which continue to gain market share from chemical inputs. Alliances are being formed between biological solutions and large agchem players, such as BASF/Acadian Seaplants and UPL/CH4 Global. The investors in our round were focused on the long term and see Cascadia Seaweed as providing solutions to farmers for climate change adaptation and environmental performance.

2.) GAI News: What is driving demand for seaweed-based ag solutions?

Napoli: Climate change is increasing the frequency of crop abiotic stress episodes (drought and heat stress, water shortages and frost events) where seaweed biostimulants are most effective. Seaweed biostimulants stimulate plant responses to improve abiotic stress resilience, helping the plant defend its crop potential against these stresses. Most crop losses are caused by abiotic factors such as nutrient deficiency, heat, cold, flooding, acidity and toxicity. Seaweed biostimulants act as insurance to improve yields and grower return on investment.

3.) GAI News: What is the target size for the company’s Series A?

Napoli: Cascadia Seaweed closed the first tranche of its Series A Round, raising CAD$4 million (USD $2.8 million), and is looking to raise another CAD$3 million (US$2.1 million).

Equally important is the quality of investors we are welcoming in this round, including WWF Impact (the impact investing arm of World Wildlife Fund U.S.), Vere Ventures, Potato Impact Partners, VertueLab Climate Impact Fund, Realize Impact, the Real Estate Foundation of British Columbia, Norfolk Green Ventures and other valued investors.

4.) GAI News: Could you share anything that is in the pipeline for early 2025, either on the product innovation side or additional fundraising?

Napoli: With the funds, we plan to build a commercial-sized seaweed processing facility (biorefinery) on the West Coast, expand production of biomass and broaden the sales and marketing efforts of our biostimulants and bovine feed additives products.

GAI News would like to congratulate Cascadia Seaweed on the fundraising and thank Rob for his contribution!

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