AlgiKnit, a sustainable kelp yarn producer based in North Carolina, has received $13 million in a Series A financing round led by Collaborative Fund with participation from H&M CO:LAB and SOSV.
Following a previous round last year, AlgiKnit has now secured a total of $17.9 million. The latest raise comes as the company opens its new facility in North Carolina’s Research Triangle area, which will allow it to scale production of the eco-friendly yarn.
AlgiKnit’s yarns are made by extracting a substance called alginate from seaweed and combining it with renewable biopolymers. The resulting fibers can then be knitted into textiles and colored with natural pigments. These textiles could potentially be used across a range of industries, including fashion, furnishings, and automotive.
Founded in 2017, AlgiKnit has the aim of disrupting current methods of yarn production, which are associated with pollution, high carbon emissions, and excessive water use. The company initially rose to success after participating in two accelerators — the RebelBio Accelerator Program in London and the Fashion for Good Plug and Play Accelerator in Amsterdam.
“With the opening of our new facility in the Research Triangle area of North Carolina, we are focused on expanding our production capabilities, partnerships, and team to address global demand more quickly,” said AlgiKnit co-founder and CEO, Tessa Callaghan. “This is a huge next step in bringing this technology to scale, and creating positive, tangible change for the planet. We are so excited to partner with new and existing investors who share our vision for transforming the fashion ecosystem.”