Earthodic secures $6.1 million seed funding round
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The news: Brisbane-based climate tech startup Earthodic has announced a $US4 million ($6.1 million) seed funding round led by FTW Ventures.
The context: The funding round also included participation from Circulate Capital, Queensland Investment Corporation (QIC), UniQuest Fund, Significant Capital Ventures, Branch Venture Group, RedStick Ventures and US-based angel investors. Existing investors Tenacious Ventures, Investible and Closed Loop Partners also participated.
Earthodic helps companies within the paper industry–and their customers–who want to move to circular models of production. Their proprietary coatings achieve key barrier properties using purely bio-based ingredients.
The company's coatings address packaging waste, which makes up approximately 30% of landfilled waste.
The seed round will be used for expansion into the US following successful coating trials at Western Michigan University's Pilot Plant on various paper grades and applications.
The company has also acquired historical lignin coating patents from Queensland University of Technology and secured letters of intent from global FMCG companies.
What they said: "Biobarc coating could help eliminate paper and plastic from landfills, eliminate microplastic pollution—and it uses a renewable resource to do so," general manager of Pilot Plants at Western Michigan University Lon Pschigoda said.
FTW Ventures investor Jenn Burka said: "We believe that making bio-based barrier coatings at scale is a crucial step in lessening our reliance on plastic based packaging, and Earthodic's ability to utilise materials that would have otherwise been wasted is a great example of how the circular economy can truly achieve a double bottom line".
The source: Earthodic Press Release
