Kuehnle AgroSystems (KAS), an algal biotechnology company developing sustainable natural astaxanthin through proprietary dark fermentation technology, announced the closing of a multi-million-dollar Series B financing round. The round was led by IVC, with continued participation from existing investors S2G Investments and Hatch Blue, alongside new investor Dest EOOD.
The funding will support KAS as it transitions from technology development to commercial production and sales. The company plans to use the capital to expand its research and development capabilities, accelerate its strategic development program with sustainable food ingredient company Corbion, develop and validate salmon feed products, secure regulatory approvals for aquaculture and human nutrition markets, and scale manufacturing for commercial deployment.
The financing follows a significant technical milestone achieved earlier this year. Working with manufacturing partner Biorea, KAS successfully produced natural astaxanthin in oleoresin form using its proprietary dark fermentation technology at an industrially relevant scale. According to the company, this marked the first time natural astaxanthin oleoresin has been produced through dark fermentation at this scale, demonstrating the commercial potential of the process while significantly lowering production costs compared to conventional cultivation methods.
Natural astaxanthin plays a critical role in salmon aquaculture by providing the pink coloration consumers expect while also supporting fish health, fertility, immune function, stress tolerance, and overall production performance. KAS believes its fermentation-based production platform can offer a more sustainable, reliable, and cost-effective supply of the ingredient while reducing environmental impact and strengthening supply chain resilience.
Beyond aquaculture, the company also sees strong opportunities in the nutraceutical market, where natural astaxanthin has gained recognition as a powerful antioxidant. KAS estimates the global astaxanthin market is worth approximately $2 billion and expects it to grow by around 15% annually over the next decade, driven by expanding salmon production and increasing demand for premium nutritional supplements.
A key component of the company’s commercialization strategy is its partnership with Corbion, which combines KAS’s proprietary microalgal technology with Corbion’s expertise in industrial fermentation, strain development, regulatory processes, manufacturing, and global commercialization. Together, the companies are working to optimize production processes, scale manufacturing, and establish a globally scalable platform for supplying premium natural astaxanthin.
As part of the financing, Frode Sandmark, representing lead investor IVC, will join the KAS Board of Directors.
The new capital will also allow KAS to expand its scientific and engineering teams, strengthen manufacturing readiness, complete regulatory programs, and deepen engagement with aquaculture and human nutrition companies ahead of its planned commercial launch.
KEY QUOTES:
“This financing validates both our technology and our commercial strategy. Earlier this year we achieved something many believed impossible—the world’s first production of natural astaxanthin oleoresin through dark fermentation. Together with our manufacturing partner, Biorea, and our strategic development partner, Corbion, we have demonstrated that fermentation can become a commercially viable route to producing one of aquaculture’s and nutraceutical’s most important ingredients. This investment enables us to accelerate manufacturing scale-up, expand our commercial partnerships and bring a truly sustainable, reliable and cost-competitive source of natural astaxanthin to the global aquaculture and human nutrition industries. We believe this technology will fundamentally reshape the natural astaxanthin market.”
Dr. Claude Kaplan, Chief Executive Officer of Kuehnle AgroSystems
“The successful demonstration of natural astaxanthin oleoresin through dark fermentation represents a pivotal milestone. Corbion is delighted to continue working alongside KAS. By combining KAS’s innovative biology with Corbion’s expertise in strain development, industrial fermentation, product development and global market access, we believe this collaboration has the potential to significantly advance the sustainable production of natural astaxanthin.”
Yves Boland, Chief Technology Officer of Corbion
“KAS has developed one of the most exciting biotechnology platforms we have encountered in sustainable aquaculture. Natural astaxanthin is a strategically important ingredient for salmon farming, and we see a clear opportunity for a natural, more cost-competitive, scalable and sustainable production route. KAS has demonstrated a genuine technological breakthrough with its dark fermentation platform. Combined with an outstanding management team, a strong intellectual property portfolio and world-class strategic partners, we believe the company is exceptionally well positioned to become a global leader in natural astaxanthin production. We are delighted to support the company in its next phase of growth and I look forward to joining the Board.”
Frode Sandmark, Representative of IVC and Incoming KAS Board Member