Mýsköpun raises a $700K round led by New Business Venture Fund

Mýsköpun, an Icelandic biotech startup based in Mývatnsveit, has secured $700,000 in a funding round led by New Business Venture Fund (Icelandic: Nýsköpunarsjóður atvinnulífsins), with participation from other investors including Upphaf, Jón Ingi Hinriksson ehf, Jarðböðin, and Fjárfestingafélag Þingeyinga.

Mýsköpun has been researching algae for several years, with a focus on isolating, analyzing, and cultivating microalgae from Mývatn, to produce and sell Spirulina and Chlorella, two types of algae that are known for their high nutritional value. The company believes that microalgae can become an important ingredient for the future food supply, as well as in the pharmaceutical and aquaculture industries.

The funding will be used to finance the development of small-scale algae production, which is crucial for larger-scale production in the coming years. The company aims to first master production in a limited amount, guarantee quality, and open sales channels.

The unique location and origin of the algae found in Mývatnsveit, which is due in part to geothermal heat in the area, make the company’s research particularly noteworthy. Mýsköpun is currently based in Landsvirkjun’s premises at Bjarnarflag and has received support from the Icelandic state-owned energy company in recent years.

Hrönn Greipsdóttir, CEO of The New Business Venture Fund, expressed her satisfaction with the fund’s involvement in the development of Mýsköpun: “The investment is in the spirit of the Fund’s emphasis on getting to startups early, bringing in private investors, and bridging the gap for the companies until the projects are sufficiently mature for other investment funds. It is also extremely gratifying to support a project that simultaneously contributes to improved food supply, supports climate goals, creates jobs, is located in the Northern part of Iceland, and is led by three powerful women who bring valuable expertise to the project.”

Dagbjört Hafliðadóttir, CEO of Mýsköpun, also expressed her excitement about the funding, stating that it “creates space for us to establish small-scale production of Spirulina and Chlorella in Bjarnarflag and implement our plans for the further development of production in the coming years. It is a great milestone and recognition for us to get the New Business Venture Fund to lead this financing and to find good support from powerful investors in the North.”

Mýsköpun’s plans for full-scale production, which could cost up to $22M will be better implemented in the coming months. The company’s innovative research and unique location make it a promising startup to watch in the Icelandic biotech industry