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ST160123

Transforming a growing ecological crisis into a lucrative opportunity by converting harmful sargassum algae into high-value bio-based products. Leveraging proprietary, eco-friendly technology, the company addresses the environmental damage caused by algae blooms while tapping into billion-dollar markets such as agriculture, aquaculture, renewable energy, and sustainable materials. With year-round production capabilities, a self-powered facility, and strong industry connections, it is uniquely positioned for scalable, sustainable growth.

The company represents an exceptional investment opportunity due to its access to massive market potential, proven traction through key partnerships and validated product development, and strong financial projections showcasing rapid revenue growth and high margins by Year 3. With proprietary technology that enables full utilization of sargassum and independence from seasonal constraints, alongside deep ties to a high-growth region, this innovative solution combines meaningful environmental impact with significant financial returns.

Overview

  • Industry: Biotech and Sustainability
  • Incorporation: Legally incorporated on August 1, 2024
  • Location: Mexico
  • Core Focus: Utilizing proprietary processes to valorize sargassum algae, transforming it into bio-based products across multiple industries while addressing ecological damage caused by algae blooms.
  • Team Expertise:

    → Founders with diverse expertise in environmental sciences and business management.
    → Relationships with key industry stakeholders and local organizations in Mexico.

Problem & Solution

  • Problem Statement:

    ‍    Since 2011, Caribbean sargassum blooms have increased by over 100 times, causing significant ecological and economic damage:

    → 20 megatons of sargassum land on Caribbean shores annually.
    → Decomposition releases 8.5 megatons of CO2 and toxic gases, including ammonia, hydrogen sulfide, and methane.
    → Harms marine ecosystems, killing fish and coral reefs by depleting oxygen.
    → Negatively impacts tourism, costing Mexican hotels over $120M annually for clean-up.
  • Current Industry Practice: Mechanical harvesting leads to biomass being burned, buried, or landfilled, further exacerbating environmental issues.
  • Proposed Solution:

    Proprietary Process: A     stepwise biorefinery approach to process fresh sargassum:
    → Extracts valuable compounds like pigments, proteins, and biochar.
    → Converts waste into clean energy (CNG) and bio-hydrogen.
    → Generates carbon credits, ensuring environmental and economic benefits.

    Competitive Advantages:
    → Year-round production, unlike competitors restricted to 5-7 months of algae availability.
    → Comprehensive valorization with no leftover waste.

Market Potential

  • Target Market: Multi-billion-dollar industries, including agriculture, aquaculture, renewable energy, and sustainable materials.
  • Market Size and Projections:

    Carbon Credit Market: $2T by 2030
    Animal Feed: $929B by 2030
    Aqua Feed: $100B by 2030
    Pigments: $58B by 2030
    Bio-Plastic Industry: $43.7B by 2030
    Emulsifiers: $4.6B by 2028
    Brown Algae Protein: $1.3B by 2029
    Carrageenan Market: $1.3B by 2030
    Alginate Market: $1.1B by 2031
    Fucoidan Market: $190M by 2031
  • Key Trends Driving Growth:

    → Global push toward sustainable alternatives to traditional materials.
    → Increased environmental regulations favoring bio-based products.
    → Rising costs of traditional farming and demand for organic alternatives.

Product and Services

  • Core Product: Aquaculture feed derived from sargassum, designed to enhance shrimp growth rates and protein content.
  • Additional Products: Biochar, fertilizers, pigments, and clean CNG for energy production.
  • Technological Foundation:

    → Advanced nutrient extraction and purification technology.
    → Published research validating the effectiveness and innovation of their processes.
  • Development Status:

    → Ready for one-ton/day production within five months of funding.
    → Successful large-scale tests completed with major aquaculture partners.

Team Overview

  • The team behind this biotech venture is composed of accomplished professionals with expertise spanning environmental sciences, biotechnology, and business strategy. Their collective experience and diverse backgrounds provide the foundation for the company’s innovation and growth.
  • Chief Executive Officer: The CEO is a seasoned entrepreneur with a proven track record in founding and scaling startups. With expertise in strategic leadership and operational management, they have successfully driven the company’s vision of transforming environmental challenges into marketable, scalable solutions. Their ability to navigate complex markets and build partnerships has been pivotal to the company’s early successes.
  • Chief Technology Officer: The CTO is an accomplished environmental scientist specializing in marine biology and bioprocess engineering. With years of research experience in sustainable technologies, they have spearheaded the development of the company’s proprietary processes for sargassum valorization. Their work has been published in leading scientific journals, validating the company’s innovative approach.
  • Head of Product Development: This individual is a biotechnologist with a focus on the extraction and refinement of natural compounds. They have led the team’s efforts in developing high-value bio-based products, including aquaculture feed and fertilizers. Their expertise ensures that the company’s products meet market requirements and stand out from competitors.
  • Chief Operations Officer: The COO has extensive experience in supply chain management and production operations within the agricultural and industrial sectors. They oversee the logistical and operational aspects of the company, ensuring efficiency and sustainability throughout the production process.
  • Business Development Director: With a strong background in corporate partnerships and market expansion, this team member is responsible for identifying growth opportunities and fostering relationships with key stakeholders. Their efforts have been instrumental in securing Letters of Intent (LOIs) from major partners and establishing ties with industry leaders in Mexico.
  • Environmental Advisor: An expert in environmental policy and sustainability, this advisor provides critical guidance on regulatory compliance and ecological impact mitigation. Their deep understanding of local regulations ensures the company operates responsibly and maintains strong relationships with governmental and non-governmental organizations.

Traction

  • Key Partnerships:

    → Secured four Letters of Intent (LOIs) for aquaculture feed, fertilizers, and biochar.
    → Discussions with publicly traded companies for emulsifier supply.
    → Collaborations with major resorts in Quintana Roo to address sargassum challenges.
  • Milestones Achieved:

    → Partnership expansions with resorts and industrial buyers.
    → Technological validation through scientific publications and successful tests.
  • Market Readiness: Products are positioned for direct integration into customer operations.

Financials

  • Funding Requirement: $850,000 to scale production and commercialization.

    $425,000 for product development
    $150,000 for marketing and sales efforts
    $220,000 for hiring operational and technical staff
    $55,000 for additional costs
  • Revenue Projections:

    Year 1: $    33,005 (Gross Margin: 4.8%)
    Year 2:     $2.4M (Gross Margin: 54.1%)
    Year 3:     $10.5M (Gross Margin: 77.9%)
    Year 3 Net Profit Margin: 54.16%.
  • Burn Rate: Year 1: High initial burn rate due to pre-operational costs; significant improvement by Year 3.
  • Runway: 13 months post-funding.

Competitive Analysis

  • Direct Competitors: Companies like Carbon Wave, with seasonal dependency and less efficient conversion processes.
  • Indirect Competitors: Traditional suppliers in agriculture, aquaculture, and bio-based product industries.
  • Competitive Edge:

    → Year-round production capabilities.
    → Fully self-powered facility using CNG generated in-house.
    → Advanced technology for multi-industry product applications.
    → Deep ties within Mexican agriculture and industrial markets.

Risks and Mitigation

  • Market Risks: Weather and supply variability of sargassum.
    Mitigation: Partnerships with three of the five syndicatos in the region to ensure supply.
  • Operational Risks: Rising costs of labor and land in Quintana Roo.
    ‍Mitigation: Cost-effective facility design with renewable energy.
  • Regulatory Risks: Potential changes in government laws for sargassum collection.
    ‍Mitigation: Strong governmental relationships and adaptable processing capabilities.

Exit Strategy

  • Acquisition: Strategic buyout by larger corporations looking to enhance sustainable product offerings.
  • Merger: Opportunities to combine strengths with complementary biotech or energy companies.
  • Private Sale: Selling to private investors seeking innovative and scalable sustainability solutions.
  • IPO: A future consideration with increased market share and maturity.

Pitch Deck

View the deck through the link below—while some unique identifiers have been removed, it still offers a great overview. For access to detailed investor materials, please reach out to us, as full decks are only shared upon request to maintain confidentiality and exclusivity.

View Pitch Deck

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