Biotechnology company Alternative Plants attracts investment for growth in export markets and to increase production capacity
With the participation of local and foreign investors, Alternative Plants concluded an investment round in April of this year. In addition to the approximately 500 thousand EUR previously attracted from various funding sources and EU-funded projects, an additional 500,000 EUR in funding was secured. Among the investors are funds with which the company has already had successful cooperation in early development stages – Buildit Latvia and SOSV, as well as a new investor, Givaldi AS.
In the last two years, Alternative Plants has begun the execution of three EU-funded research projects. The company is a partner in two domestic ERAF practical orientation research projects and is also a participant in the EU co-funded 17-partner consortium of the Horizon2020 program's "InnoCoCells" project (www.inncocells.org), wherein, in collaboration with leading European plant biotechnology research institutes and companies, they are developing effective and sustainable plant-origin cosmetic raw materials, as well as guidelines for testing and regulating such products.
The company has made significant investments in the creation of a pilot plant to provide infrastructure for the efficient extraction of biologically active substances using plant cell cultures. The first three products, raw materials with proven positive effects on skin health, have already been commercialized and have been appreciated by cosmetics manufacturers. These raw materials stand out for their laboratory-tested skin-protective, anti-inflammatory, and antioxidant effects. Moreover, compared to competing raw materials, the biotechnological production method used makes these raw materials more environmentally friendly and sustainable.
Feedback from existing partners and clients, increasing demand, and the potential to more widely use the company's developed production technology create the need to increase the current cell cultivation capacities and to develop new raw materials with market-demanded properties based on existing technology. Over the year, with investments in production equipment, the production capacities of existing products will be increased. The additional investment will also accelerate the development of already started new products, allowing the company to offer at least two new effective raw materials to the market in the coming years. The satisfaction of clients and partners obtained at an early stage indicates growth potential in broader export markets, and attracting funding will allow reaching the new client acquisition targets set for 2022.
Alternative Plants SIA is a company registered in Latvia, established in 2017, with its main activity being the production of active cosmetic ingredients using a biotechnological approach by cultivating plant cells. Alternative Plants, attracting investments from several venture capital funds, has set up its pilot plant in Riga. The company has currently developed 4 raw materials with proven effectiveness in improving skin health and delaying aging.