Halifax supplement startup Infusd Nutrition has closed an oversubscribed funding round of more than US$2 million (C$2.8 million), with which it hopes to increase sales and work on product development.

The funding round was led by NextGen Nutrition Investment Partners of France with investment from Nourish Ventures, a unit of Griffith Foods of Toronto, and Agthia Ventures of Abu Dhabi, the company said in a statement Monday. The company had previously raised an undisclosed amount of angel funding in its first year of 2023.

Infusd was founded by lawyer Jack MacDonald and chemical engineer David Giffin, and based on intellectual property developed over five years at post-secondary institutions such as Dalhousie University. It has developed a process to make fat-soluble nutrients, such as omega-3 fatty acids and many vitamins, water soluble.  

“This investment will allow us to scale up our customer-focused resources to service the incredible demand we have been seeing for our solutions,” said MacDonald in a statement. “I'm thankful to our entire team who work hard every day to ensure Infusd continues to deliver value to our partners."

The company says its technology transforms hundreds of popular fat-soluble and insoluble ingredients into water-soluble material at high concentrations with proven stability. These ingredients include Omega-3, botanical extracts, fat soluble vitamins and insoluble branded material. The technology enables the creation of both liquid and powdered products for ready-to-drink, ready-to-mix, and food fortification applications.

In addition, the company says its product is effective for clean-label requirements across a range of food and beverage products. It enhances the performance, stability, and cost-effectiveness of natural colors, flavors, and natural preservatives, said the company.

"Infusd addresses functionality and clean-label needs in major, fast growth categories like functional beverages, sports nutrition and VMS [vitamins, minerals and supplements],” said Jim Cali, General Partner at Next Gen Nutrition. “Addressing solubility challenges unlocks the full potential of new ingredients and provides opportunities for new format extensions of strong legacy ingredients."

With a staff of six people in Nova Scotia, Infusd said it is working with customers to develop applications for the food, beverage, nutritional supplement, and sports nutrition categories.  Its technology debuted commercially at SupplySide West in late 2023, with initial commercial orders being filled earlier this year.

With a robust supply chain in place, the company said proceeds from the round will support sales, technical support and new product development. Infusd recently announced a partnership with Symrise, a global ingredient company, which sees a suite of functional health ingredients being brought to market under Symrise's Active Living portfolio.

In an email, MacDonald said: “We plan to add sales and R&D staff and accelerate our commercial efforts.”