AlgiKnit, a North Carolina-based startup with secondary offices in New York City that develops sustainable textiles from seaweed, has received $13 million in a Series A financing led by Collaborative Fund. New investors include H&M CO:LAB, the investment arm of Swedish apparel retailer H&M Group, Starlight Ventures and Third Nature Ventures; existing investors Horizons Ventures and SOSV were also participating. This series brings AlgiKnit’s total funding to $17.9 million since the company’s launch in 2017. At the same time, AlgiKnit announced the opening of a new manufacturing facility in North Carolina.
To create an alternative to conventional textiles, AlgiKnit spins yarn from a combination of algae and plant biopolymers, primarily including kelp, a common seaweed that the company calls “one of the most renewable and regenerative organisms on the planet.” This seaweed absorbs the greenhouse gas carbon dioxide at a rate up to five times faster than land-based plants and improves marine habitats. By using a non-toxic wet-spinning process, the company transforms these sustainable biopolymers into strong, hypoallergenic and compostable yarn. When products made from AlgiKnit’s yarn are worn out, they can be bio-recycled and reclaimed for the next generation of products.
In addition to the fashion industry, AlgiKnit’s products can also be used in industries such as automotive and interior design. The startup plans to use the new funding to expand the production of its seaweed-based yarn.
