Kuehnle AgroSystems nets multi-million funding for dark fermentation astaxanthin

Kuehnle AgroSystems (KAS), a Hawaiian algal biotechnology company sustainably producing natural astaxanthin through proprietary dark fermentation technology, has closed a multi-million-dollar Series B financing. The company joins the expanding premium nutraceutical market, where it says natural astaxanthin is increasingly recognized among the most potent antioxidants. 

In addition to serving the human nutrition sector, the new capital will be directed toward scaling manufacturing for aquaculture (salmon feed) through the company’s strategic partnership with food ingredients supplier Corbion, which specializes in algae-derived ingredients and industrial fermentation.

As KAS transitions from technology development to commercial production and sales, it plans to funnel the capital toward gaining global regulatory approvals. Dr. Claude Kaplan, CEO of KAS, sees the financing as a validation for the company’s technology and our commercial strategy.

Earlier this year, the company produced the “world’s first” 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 nutraceuticals’ most important ingredients,” says Kaplan.

“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.”

IVC led the funding round, alongside existing investors S2G Investments and Hatch Blue and new investor Dest EOOD.

Landmark technical achievement

The investment follows a technical milestone for KAS earlier this year. Claiming to be In a global first, through collaboration with its manufacturing partner, Biorea, KASit demonstrated the production of natural astaxanthin in oleoresin using proprietary dark fermentation technology at an industrial scale.

KAS says this breakthrough established the technical foundation for sustainably supplying natural astaxanthin with significantly lower environmental impact, improved supply security, and substantially lower production costs than conventional cultivation-based methods.

The company also highlights that global demand continues to increase alongside salmon production, while the industry seeks more sustainable and resilient ingredient supply chains.

According to KAS, the global astaxanthin market is valued at around US$2 billion and is forecast to grow at 15% annually over the coming decade.

As part of the financing, Frode Sandmark, representing IVC, will join the KAS board of directors. “KAS has developed one of the most exciting biotechnology platforms we have encountered in sustainable aquaculture,” he comments.

According to KAS, the global astaxanthin market is valued at around US$2 billion and is forecast to grow at 15% annually over the coming decade.

“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.”

Corbion collaboration

The new financing will enable KAS to expand its scientific and engineering teams, as well as engage with key aquaculture and human nutrition companies as it prepares for commercial launch.

In its collaboration with Corbion, KAS combines its proprietary microalgal technology with Corbion’s expertise in industrial biotechnology, large-scale fermentation, regulatory development, and global commercialization of ingredient solutions.

The partnership kicked off last year, as a joint initiative to develop an esterified form of astaxanthin — combining an alcohol and acid to create a new molecule rich in the most bioavailable isomer. This type of astaxanthin is designed to deliver superior antioxidant performance, enhanced stability, and fat solubility.

“The successful demonstration of natural astaxanthin oleoresin through dark fermentation represents a pivotal milestone,” says Yves Boland, chief technology officer of Corbion.

“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.”