Why investors are giving £300,000 to seaweed start-up with farm on famous Scottish island

A Scottish seaweed start-up looking to offer a clean alternative for the plastics and textile industries and tap into a multi-billion-pound market has secured a substantial six-figure investment.

Kaly Group, which was founded in 2022 and opened its first seaweed farm on the Isle of Skye earlier this year, has successfully raised £300,000 in a funding round led by Tricapital Angels, with co-investment from Scottish Enterprise. It plans to use the cash injection to expand its operations and develop an integrated and sustainable seaweed supply chain along Scotland’s west coast.

Seaweed is said to offer a clean alternative to plastics, cosmetics, pharmaceuticals and textiles, and can also be used in food, animal feed and fertilisers. The potential for seaweed farming to revitalise Scotland’s marine industries is also significant, Kaly noted. It believes that with full-scale processing facilities, the sector could create hundreds of jobs across the Scottish supply chain, offsetting the decline of traditional fishing and marine industries.

Kaly Group opened its first seaweed farm on the Isle of Skye earlier this year.

By 2030, the European seaweed market is projected to be worth as much as £9 billion, with Scotland well-positioned to capture a near £2bn share thanks to its extensive coastline.

Daniel Hillman, co-founder of Kaly Group, said: “Kaly’s vision is to unlock the full potential of seaweed farming in Scotland, creating a sustainable supply chain that benefits local communities while driving economic and environmental gains. We are thrilled by the continuing support from Tricapital and Scottish Enterprise, which will help us take critical steps toward scaling this exciting industry.”

Kaly is a joint effort between fishermen, aquaculture specialists, “accomplished” entrepreneurs and finance professionals to responsibly realise the potential for a Scottish seaweed industry.

By adopting a community-first approach, the firm collaborates with other marine stakeholders to ensure that seaweed farming benefits local communities and ecosystems alike. It will now look to address challenges across the supply chain - from biomass cultivation to the production of high-value products - to support the scalability of the UK’s seaweed sector.

Moray Martin, chief executive of Tricapital Angels, said: “We are proud to back this exciting and innovative business as it seeks to establish a large-scale, profitable and environmentally sustainable seaweed-based supply chain to support the food, nutrition and chemicals industries.

“There is growing investor interest in the ‘blue economy’ and our angels are enthusiastic about seaweed’s potential for creating economic growth in coastal and rural areas, delivering environmental and health benefits, and producing a diverse range of lower-carbon products.”

Tricapital is a business angel investment network based in Scotland that is focused on supporting “innovative and high-growth businesses across various sectors”.

Kerry Sharp, director of entrepreneurship and investment at economic development agency Scottish Enterprise, said: “This investment underscores our commitment to using our world-class innovation capabilities to increase the number of ambitious companies scaling up in Scotland. By helping these companies grow, we aim to create high-quality, high-value jobs and empower them to compete and lead in global markets.”

Kaly was set up to explore the potential for seaweed farming as a new source of income and jobs for coastal communities on the Isle of Skye.

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