How it works
Many new algaepreneurs want to start algae farms and indoor algae biomanufacturing facilities to grow algae for various co-products but lack financing. Due to the high costs of cultivation, harvesting and extraction for a start-up company NAA facilitates an Algae Production Incubator Program a collaboration between academia, private industry and potential equipment donations.
Our algae production incubator program matches the needs of a new algae start-up company with potential
non-arable land, empty greenhouses and commercial buildings, a source of water and CO2, nutrients and collaboration between qualified host companies and academia that can meet their needs. Instead of taking on debt and risk day one leasing or purchasing real estate, purchasing harvesting and extraction equipment, new algae start-up companies can lower risk and have a better opportunity of being successful. NAA facilitates some donations of commercial cultivation and harvesting equipment needed to use and negotiates preferential pricing on materials and equipment needed.
Benefits to the Algaepreneur
Initial start-up costs (i.e., land, greenhouse, commercial building, water, CO2, are provided in exchange for a small equity a minority equity give up to the host company/owner.
Benefits to Academia - Job Training
Students receive hands on training in a commercial environment
Benefits to the Host Company/Owner
The advantages of this type of arrangement to a host company are numerous. The main advantage is that the host company would be taking advantage of underutilized assets in its possession by redeploying and repurposing them for algae farming or algae biomanufacturing facility. By doing so, the host company receives a minority share of equity position (5-10%) day one for free rent and a small percentage the net profits of the company at it’s anniversary date (ie, 12-18 months). Start-up company pays all utilities. It could be a low-risk and potentially high yielding investment and that allows for diversification.
All of these areas are discussed prior to the consummation of any agreements between host company and the algae start-up company. Potential donations of equipment needed are pre-arranged.
Step 1: Submission of completed Preliminary Applications to the NAA.
Step 2: Review of information provided to determine needs and
Step 3: Once a potential match is found, the negotiations begin.
Negotiable items include: length of the term of the lease after 12 -18 months, amount of equity give-up day one by incubator company and percentage of net profits in exchange for services to be offered. Once all of these areas have been addressed, the appropriate legal
documentation is signed, and the business incubator is hatched!