Keel Labs

Keel Labs (formerly AlgiKnit) focuses on producing renewable yarn from ocean-based sources, such as seaweed, for the fashion and textile industries. The company’s flagship product, Kelsun fiber, is a seaweed-based alternative to conventional fibers. Keel Labs uses a non-toxic wet-spinning process and proprietary chemistries to develop the yarn from a biopolymer found in giant kelp. The company claims that Kelsun is strong, compostable, and hypoallergenic. In addition, as a drop-in solution for existing yarn and textile production infrastructure, it can be used for any textile application, including apparel, interiors, furnishings, and automotive uses.

In June 2022, the company opened a 15,000 sq ft manufacturing facility in the Research Triangle area in North Carolina.

Key Customers and Partnerships:

The company aims to sell its ocean-based material via a B2B channel by forming business partnerships. Stella McCartney is one of its strategic partners and investors. In October 2023, Stella McCartney unveiled a dress and tunic made of Kelsun at Stella Sustainable Market (SS24) during Paris Fashion Week 2023.

Funding and Financials:

In June 2022, the company raised USD 13 million in a Series A funding round led by Collaborative Fund, with participation from H&M’s investment arm. The funding was earmarked to expand Keel Lab’s production capabilities.