Days after celebrity backers were revealed as investors in an IPO of seaweed cattle feed business Sea Forest, a smaller rival has closed its first major funding round, and a new local venture capital operator says the sector could emerge as a major money-spinner for Australia.

Western Australia-based Fremantle Seaweed had a pre-money valuation of $11 million in a funding round that marks the first investment from marketing and public relations agency Third Hemisphere, which is spinning out its work with start-up sector clients to begin funding them.