The funding was granted to the firm in order to advance the development of its oral vaccine for the treatment of peanut allergy.
Peanut allergy affects around 2% of the Western population, and is the most common cause of food-induced fatal allergic reactions.
The firm secured the funding from the EOS Technology Investment Syndicate, Scottish Investment Bank and Scottish Enterprise.
Gillian Brown, Alfacyte’s chief executive, said: "Alfacyte is very pleased to be establishing its business at BioCity Scotland.
"As a very young and very small SME, we feel BioCity offers not just excellent facilities but an opportunity to mix with similar companies and share experiences.
"BioCity is more than just a location for our business, we can also benefit from the support and knowledge of its team and its network."
Dr Diane Harbison, managing director of BioCity Scotland, added: "Alfacyte is a tremendously exciting and innovative young company and I am delighted that they have chosen to come to BioCity Scotland.
"Food allergies are a very common life-limiting condition, especially in children, and cause hundreds of fatalities every year, so the development of an oral vaccine to treat peanut allergy has the potential to change thousands of lives all over the world.
"We look forward to supporting the ongoing development of the company here at BioCity Scotland."
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