Atlantic Sea Farms, the first commercial seaweed farm in the United States, has raised a new round of financing, which it is using to build a new facility, grow its retail product lines and provide additional opportunities for lobstermen to diversify their incomes.
The company, whose legal name is Ocean Approved, raised $3.1 million by selling equity in the company, according to paperwork filed with the U.S. Securities and Exchange Commission.
The company is the country’s largest producer of farm-raised seaweed, representing more than 80% of all cultivated seaweed in the country, according to the company. It partners with more than 34 independent seaweed farms up and down the Maine coast. It is currently preparing for the 2022 kelp season, and projects well over 1 million pounds of harvested kelp, representing a 3,000+% growth since August 2018 when the company brought on Briana Warner as the new CEO.
The newly raised capital is in part funding the buildout a new state-of-the-art seaweed processing and innovation facility in Biddeford that will be able to process all landed kelp within hours of harvest, and produce high-quality consumer products and ingredients.
“Moving into this new facility,” Warner said, “we are able to continue to grow our partner farmer network by producing our own products as well as products for companies looking to add regenerative, umami-rich seaweed to their own offerings.”
Desert Bloom Food Ventures, a fund that invests in innovative food companies, led the funding round.
“We are thrilled to be supporting such a dedicated, passionate and talented team,” Julia Paino, a partner at Desert Bloom Foods, said in a statement. “It is unique to find a company addressing several critical areas all at once. We deeply value the positive social, nutritional, and environmental impact woven into the DNA of Atlantic Sea Farms. This is a company that can fundamentally improve both human and planetary health and we truly look forward to being a part of Atlantic Sea Farm’s mission to ‘Kelp the Earth!'”
Paino now occupies a seat on Atlantic Sea Farms’ board of directors, joining existing board members Lisa Sebesta, an investor and consultant; Chandler Jones of CEI Ventures; and Warner.
Atlantic Sea Farms also added Jason Jones to its board. Jones is founding president of Vital Farms, which was one of the fastest growing food and beverage companies in America in its early years, and successfully IPO’d in 2020.
“Briana and the Atlantic Sea Farms team have pioneered a truly elegant farming model that creates so much benefit for consumers, farmers, and our planet,” Jones said in a statement. “We all want to support systems that diversify our food options and tread lightly on our ecosystem. I am proud to be a part of such a progressive upgrade to the way we engage with natural resources, support producers, and feed ourselves.”
Kelp farming, it turns out, isn’t just good business; it’s also beneficial for the coastal economy and environment, according to Warner.
The company provides Maine lobstermen an opportunity to diversify their incomes at a time when the state’s coastal economy—almost entirely dependent on the lobster fishery—is extremely vulnerable, even providing them with free seeds, technical assistance and training.
“Our company is laser focused on providing supplemental income opportunities for our coastal communities at a time when climate change and increased regulations are making the lobster fishery increasingly volatile,” Warner said.
Kelp, which Warner calls “the ultimate regenerative crop,” is also beneficial from an environmental perspective.
“We don’t use arable land, fresh water, or fertilizers,” Warner said. “This method of sustainable aquaculture helps mitigate some of the effects of climate change by removing carbon and nitrogen from the water and reducing ocean acidification.”
As of the spring 2021 harvest, the company reports that it has removed approximately 150,000 pounds of carbon from Maine’s ocean in just three short growing seasons.
