How it works
Many new algaepreneurs interested in starting new algae farms and indoor algae biomanufacturing facilities lack the up-front investment, experience and access to commercially-minded researchers and experts. To help lower some of the up-front costs for start-up companies associated with commercial algae cultivation, harvesting and extraction, NAA facilitates an Algae Production Incubator Program by matching the needs of a new algae start-up company's access to commercial buildings, greenhouses, sources of water and CO2 to help them get started in the commercial algae production industry.
Qualified host companies along with commercially-minded researchers and experts assist new algae start-ups meet their initial start-up needs and challenges through our Algae Production Incubator Program.
They provide hands-on training in commercial algae cultivation, harvesting and extraction for various co- products by helping lower risk by not taking on the liabilities while starting up commercial algae production.
Benefits to the Algaepreneur
Initial start-up costs (i.e., land, greenhouse, commercial building, water, CO2, are provided in exchange for 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!