XiaoZao Tech

About XiaoZao Tech

XiaoZao Technology, founded in 2015 by Wei Yu, operates as a biotechnology company focused on the microalgae sector. The company has established a vertically integrated business model that encompasses the entire value chain, from microalgae strain research and development to cultivation, extraction, and finally, sales. Wei Yu, who serves as CEO, brings extensive experience from roles in R&D, business development, and venture capital at major international corporations like Abbott, Monsanto, and Syngenta, along with leadership positions at Solix Biosystems and Zymetrics.

The core of XiaoZao Tech's business is the commercial-scale production of nutrients derived from microalgae, specifically the Omega-3 fatty acid eicosapentaenoic acid (EPA). The company cultivates Nannochloropsis sp. microalgae using purified seawater, sunlight, and CO2, positioning its product as a sustainable, plant-based alternative to traditional fish oil, thereby alleviating pressure on marine ecosystems. This process yields a high-value EPA oil, which is essential for human and animal nutrition, supporting cardiovascular, immune, and cognitive health. Revenue is generated through the sale of this algal oil and other byproducts to various markets, including human and animal nutrition, cosmetics, and as pharmaceutical intermediates.

A key product is a highly bioavailable EPA oil, naturally rich in polar lipids, which studies suggest is absorbed more rapidly than krill oil. After the oil extraction, the remaining defatted algal biomass, which is nearly 70% protein, is sold as a valuable product for vegan protein customers. Headquartered in Shenzhen with commercial operations in Guangxi province, the company operates a U.S.-based commercial division, Lyxia Corporation, in California. In May 2021, XiaoZao Tech secured $15 million in a Series B funding round from investors including Oriental Fortune Capital and THG Ventures, supporting its mission to become a global supplier of natural Omega-3 algae oil.