[Korean Startup Interview] FUST Lab, ‘Revolutionizing Industrial Emulsification and Dispersion with Focused Ultrasonic Tech.’
Reading Time: 8 minutes- funding Stage : Pre-Series A
- Raising Amount : KRW 3 B
- Desired Fundraising Timeframe : 2Q 2024
What do the industries that manufacture cosmetics, food, pharmaceuticals, and paints have in common? The critical importance of evenly mixing raw materials. It’s not just about mixing, but achieving a well-dispersed mixture, known as emulsification and dispersion technology. To mix substances that don’t blend well, like water and oil, special materials are required, with surfactants being a prime example.
Surfactants have a molecular structure where one end is hydrophilic, meaning it bonds well with water, while the other end is hydrophobic, bonding well with oil but not water. This allows oil droplets to stably combine with water or helps remove oily stains from clothes.
However, surfactants have several issues. Primarily, they can be harmful to the human body and the environment. Additionally, oil components in products, such as those in cosmetics, serve specific functions. Surfactants can encapsulate these oils, hindering their intended effects.
FUST Lab is an advanced technology company that has developed emulsification and dispersion equipment using focused ultrasonic technology to overcome the problems and limitations of surfactants. This technology was initially developed and patented by researchers at the Korea Research Institute of Standards and Science (KRISS) in 2008. A startup was created under the leadership of the KRISS to develop equipment using this technology. However, the product failed to reach mass production due to issues with ultrasound transmission uniformity, nano-emulsification dispersion homogeneity, and continuous processing constraints. Hwangbo Min-sung, CEO of FUST Lab, was responsible for commercialization at the startup at the time but eventually left the company. After hearing about the startup’s failure in mass production, he learned from that failure and introduced new technology capable of mass production, leading to the founding of FUST Lab.
The solution found by CEO Hwangbo was DEBREX, a system that delivers focused ultrasound more powerfully by concentrating the raw materials through a cylindrical piezoelectric ceramic, unlike the conventional batch or bath, horn type technologies. With this technology, FUST Lab has achieved uniform ultrasound focusing, homogeneity in nano-emulsification dispersion, and mass production capability of up to 30 continuous days, which previous technologies could not achieve. Additionally, compared to equipment from a leading American ultrasound emulsification dispersion company, FUST Lab’s technology demonstrates superior particle size, uniformity, and up to four times longer sustained dispersion. Recognized for its technological prowess, FUST Lab has won various awards, including the D-Day event hosted by ‘d・camp’ in March.
If FUST Lab’s technology, which maintains emulsification dispersion for 24 months without or with minimal surfactants, reaches mass production, it will revolutionize industries such as cosmetics, pharmaceuticals, food, paints, and secondary batteries. Global companies like P&G, Nippon Kayaku, and Resonac are taking note of FUST Lab and discussing global expansion due to this potential.
Meanwhile, FUST Lab is expanding its business by applying its focused ultrasonic technology to water treatment and the decomposition of petrochemical waste, beyond just nano-emulsification dispersion. In water treatment, it aims to enter the industry by combining microbubble technology with the currently spotlighted advanced oxidation process (AOP).
Furthermore, in petrochemical products, there are perfluorinated compounds (PFAS), known as the ‘ultimate plastic,’ which are almost non-degradable. The most well-known is polytetrafluoroethylene (PTFE), commonly called Teflon. These perfluorinated compounds are strongly bonded by carbon (C) and fluorine (F), making them nearly non-degradable after disposal and highly toxic when accumulated in the human body, causing serious concerns for many countries. However, with FUST Lab’s focused ultrasonic technology, the decomposition efficiency of these perfluorinated compounds can be enhanced by as much as 12,000 times. FUST Lab is currently collaborating with SK Ecoplant and Korea Water Resources Corporation (K-WATER) in the water treatment field and is also in discussions with global companies in the decomposition of perfluorinated compounds.
It is common for startups to fail in business or mass production, even if they have good technology. Now is the time for investors to pay close attention to FUST Lab, which has not only overcome such failures but also revolutionized existing technology and is now knocking on the door of the global market.
What problem is FUST Lab trying to solve?
In manufacturing industries, a key technology involves uniformly mixing various materials and maintaining that mixture over time. This is known as emulsification and dispersion technology. Traditionally, industries have used surfactants as emulsifiers for this process. Surfactants activate the interface between materials that do not mix easily, like water and oil. Soap, for example, is a common surfactant. It has hydrophilic ends that attach well to water and hydrophobic ends that attach well to oil, aiding in the removal of oil stains.
However, industrial processes can be lengthy, and during these processes, surfactants can lose stability. They also tend to encapsulate the surfaces of materials, preventing them from functioning as intended. Additionally, there are ongoing concerns about their environmental and human health impacts. In response, there is an ongoing effort within the industry to develop higher-performing materials through new approaches, surpassing traditional emulsification and dispersion methods.
How does FUST Lab solve this problem?
We address this issue using focused ultrasonic technology. Essentially, when water and oil are mixed and subjected to powerful focused ultrasound, the oil breaks down into extremely small, nanometer-sized particles that disperse evenly throughout the water. Despite the natural buoyancy and momentum of these tiny oil particles, the Brownian motion within the water is stronger, preventing them from rising and maintaining an even dispersion. This dispersion technology via focused ultrasound has been developed and patented by entities like the Korea Research Institute of Standards and Science (KRISS). I was initially involved in commercialization at a startup established by KRISS, but at that time, it failed to reach commercialization.
The primary reason for the failure of existing ultrasound technologies was that they used bath or horn-type containers that did not allow for uniform ultrasound transmission, leading to ineffective emulsification and dispersion. Additionally, there were limits in energy transmission, and attempts to inject stronger ultrasound frequencies resulted in problems like vibration, noise, and overheating, ultimately leading to production failures.
FUST Lab has developed focused ultrasonic technology that overcomes these issues. Our technology allows for continuous processing and the production of uniform nanoparticles, reducing the need for surfactants by 10-20% compared to traditional processes, or even eliminating them entirely.
We first applied this technology in cosmetics and are now extending it to pharmaceuticals, secondary batteries, dietary supplements, and paints, driving innovation across these fields.
What are FUST Lab’s competitive and technological advantages over its competitors?
Currently, many in the industry use high-pressure dispersion methods for emulsification and dispersion, which are inefficient and result in significant material loss with each batch. These methods cannot achieve emulsification and dispersion without surfactants, severely limiting material performance.
In contrast, FUST Lab’s focused ultrasound emulsification and dispersion technology delivers ultrasound energy precisely and uniformly by channeling target materials through a thin, piezoelectric ceramic cylindrical tube. This process, unlike batch methods, continuously passes materials through the tube, allowing for up to 30 days of continuous emulsification and dispersion. These technological advances have enabled FUST Lab to establish a successful mass production system, overcoming the limitations of previous ultrasound emulsification and dispersion technologies.
What products/services does FUST Lab offer? What is their current status?
In December 2023, we launched DEBREX, our line of focused ultrasound research equipment and compact devices in the domestic market, and sales are currently ongoing. We’ve also showcased these products at trade shows in Japan and Germany and are actively negotiating with local distributors to accelerate our entry into the global market.
In the second half of 2024, we plan to launch mass-production capable equipment in the domestic market, with an aim to expand our lineup of research, compact, and production models to the Japanese and European markets by 2025.
What is the size of FUST Lab’s target market and who are its core target customers?
The global market for emulsification and dispersion equipment is estimated at about 4 trillion KRW. This figure primarily includes mass-produced products, but if large-scale facility markets are also considered, the potential market size could be even greater.
We are currently expanding our presence and exploring potential in the global market by collaborating with both global and major domestic companies. We are also working with domestic and international distributors to drive equipment sales.
What is FUST Lab’s business model?
Our primary revenue stream comes from equipment sales. Additionally, we are aiming to generate supplementary revenue through joint research projects with manufacturers of finished products. Notably, FUST Lab’s emulsification and dispersion particles significantly outperform existing products in terms of absorption and spreadability, which facilitates further sales through new product development.
We ran a product comparison test with the product of company M, a leading U.S. firm developing emulsification and dispersion equipment using ultra-high-pressure ultrasound. The tests showed that while M Company’s particles range from 100 nanometers to several micrometers, particles produced using FUST Lab’s focused ultrasonic technology measure only between 50 and 500 nanometers, demonstrating our superior performance. Unlike M Company, which struggles with continuous production, our process using piezoelectric ceramic tubes enables continuous production, reducing costs and extending the lifespan of emulsification effects from less than six months to 24 months.
What are some of the FUST Lab team’s achievements?
Shortly after the launch of the DEBREX equipment in December 2023, we secured three contracts and are currently conducting tests with numerous companies. We also plan to complete the development of increased production volume equipment by the end of June and aim for a release in the latter half of the year.
We are pursuing rapid global market entry through PoC and collaborations with companies like P&G, Nippon Kayaku, and Resonac, and are maintaining ongoing discussions with distributors in Japan and Europe.
We currently hold two registered patents and are actively filing for more. Additionally, we are pursuing patent filings in the USA, Japan, and Europe this year.
In March this year, we won the Grand Prize at D-DAY, an event co-hosted by the Patent Office and ‘d・camp’, and have also received awards from SK Ecoplant, the Research and Development Special District Promotion Foundation, and the City of Daejeon.
What are the FUST Lab team’s competitive strengths?
Our team consists of researchers from the Korea Research Institute of Standards and Science and other institutions who pioneered the commercialization of focused ultrasonic technology in Korea, as well as experts in materials science and toxicology assessments.
Our sales team, led by a team leader with over 30 years of experience, and Caroline, who studied environmental science in the USA, are steering our global business initiatives. This team of specialists is dedicated to propelling FUST Lab’s technology onto the global stage, with plans to continue expanding our expert team.
Three reasons why we should receive investment!
First, ‘Rapid Global Market Entry’. FUST Lab is swiftly penetrating the global market, currently collaborating on PoC and partnerships with global corporations like P&G, Resonac, and Nihon Kayaku, and in discussions with distributors across Europe, the USA, and Japan. We are poised to expand these collaborations further.
Second, ‘Scalability Across Various Fields’. Our focused ultrasound emulsification and dispersion technology offers potential for expansion across various sectors. With additional investment, we can accelerate results not only in emulsification and dispersion but also in water treatment, where we are increasing interactions with global companies to manage water pollution. This enables rapid business expansion and significant revenue growth.
Third, ‘Potential for a 2030 IPO or Global M&A’. FUST Lab is poised for a technology special listing before 2030 or potential M&A with global companies, offering various EXIT opportunities for investors, whom we encourage to actively consider investing.
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