Earthodic expands their bio-based coating operations into the US following an oversubscribed Seed fundraise.

Delaware, USA – 28th October, 2024

Earthodic, a climate-tech innovator in bio-based coatings for the paper packaging market, is pleased to announce their expansion plans for the US following completion of an oversubscribed seed round. Earthodic’s certified recyclable coatings offer a sustainable alternative for global brands and packaging companies, mitigating the environmental impact of packaging waste that makes up approximately 30% of landfilled waste.

Earthodic’s latest capital raise secured USD$4 million in funds to expand their product and sales teams, manufacturing and distribution partnerships across the US and Australia. The Seed fundraise attracted investment from highly regarded funds across the Circular Economy, Climate Tech and Agtech sectors. Led by FTW Ventures, other new investors included Circulate Capital, Queensland Investment Corporation (QIC), UniQuest Fund, Significant Capital Ventures, Branch Venture Group, RedStick Ventures & US-based angel investors. Earthodic’s existing investors, Tenacious Ventures, Investible and Closed Loop Partners were also active participants in the funding round.

Earthodic will establish US Headquarters at the Innovation Center at Western Michigan University Homer Stryker M.D. School of Medicine (WMed) in Kalamazoo, Michigan. This location offers proximity to Western Michigan University’s (WMU) Pilot Coating Plant and Tappi Lab as well as numerous paper and packaging companies. During the past year, Earthodic has conducted coating trials at WMU’s Pilot Plant on a variety of paper grades and applications, including; produce punnets and cold-chain packaging. These trials have confirmed Earthodic’s sustainable coatings to be a true drop-in solution on commercial coating lines, allowing packaging companies to make eco-friendly improvements with minimal disruption.

The General Manager of Pilot Plants at WMU, Lon Pschigoda, says “Earthodics patented coating, Biobarc^TM could help eliminate paper and plastic from landfills, eliminate microplastic pollution—and it uses a renewable resource to do so.” Earthodic is enabling the circular economy through the use of lignin, a renewable biopolymer that is considered a waste product from the paper making process, created in excess of a million tonnes a year.

It has been a strong year for Earthodic, rounding out their IP portfolio with acquisition of historical lignin coating patents from Queensland University of Technology (QUT), pilot trials with multinational packaging companies, and letters of intent from global FMCG companies.

Most recently, Earthodic’s Biobarc^TM coating passed repulpability and recyclability certification by WMU according to the Voluntary Protocol of the American Fiber Box Association (FBA), indicating acceptance in paper recycling streams. This adds to the existing USDA certified 100% Bio-based Carbon Product. Earthodic has also expanded its supply chains in the US, with manufacturing partners across multiple sites in the US having the capacity to produce at full commercial scale.

“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 utilize materials that would have otherwise been wasted is a great example of how the circular economy can truly achieve a double bottom line,” Jenn Burka, investor at FTW Ventures said. “Earthodic’s team really impressed us with their technical skill, sales tenacity and operational thinking on the hard problem of scaling-up sustainable packaging solutions.”

Earthodic CEO, Anthony Musmeci, stated “We are extremely  humbled to receive funding support from leading funds in the sustainability and climate space across Australia, US and Asia. With Earthodic’s expansion to the USA and manufacturing partnerships, we’re really excited to roll out our sustainable barrier coatings with packaging companies and household brands. Helping them achieve many of their sustainability goals and eliminate non-recyclable packaging waste is the mission that drives our team.”

About Earthodic    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. They are certified 100% bio-based and recyclable. For more information please visit www.earthodic.com

About FTW Ventures    FTW Ventures is building a better world by partnering with the smartest minds to solve the biggest challenges in our food system. FTW is backed by the leading experts, investors and corporations building technology and applying advanced science from the farm to table with a goal to reverse the effects of climate change, improve the productivity of the supply chain, minimize waste created through the process of cultivating good food and fix the dire health crises created by our current Food System. For more information please visit https://www.ftw.vc/

About Tenacious Ventures    Tenacious Ventures is a thesis-led venture firm focused on unlocking impact & returns at the intersection of food system transformation & climate solutions. Tenacious was established in 2019 as Australia’s first and only dedicated agrifood tech venture capital firm, with a mission to help agriculture transition to a carbon-neutral and climate change resilient future. With a primary focus on Australian-originated opportunities, Tenacious identifies and supports innovators with scalable, defensible, and globally relevant solutions for sustainable, resilient, and profitable agriculture. For more information please visit https://tenacious.ventures/

About Circulate Capital    Circulate Capital is the leading circular economy investment platform in high-growth markets – with investments and teams in 10+ countries. Partnering with global brands and institutions, we invest to transform recycled plastic supply chains at scale, by delivering financial, environmental and social returns. Launched in 2018 by supply chain experts and leading corporations – including  PepsiCo, Procter & Gamble, Dow, Danone, Chanel, Unilever, The Coca-Cola Company, Chevron Phillips Chemical Company LLC and Mondelēz International –  aspiring toward a waste-free future, the firm’s US $257 million assets under management are invested across the waste management, recycling, and innovative materials value chains. Founded in and originally focused on South and Southeast Asia, the firm now targets scalable solutions and untapped opportunities in high-growth markets to generate value and spark further investment in the emerging circular economy. Circulate Capital’s commitment to protecting the planet, its oceans, and its people enables progress on many of the world’s most urgent challenges, including inequality and the climate crisis. For more information, please visit www.circulatecapital.com

About Queensland Investment Corporation (QIC)    Investing from seed to Series C, QIC Ventures has partnered with more than 80 world-class companies taking Australian innovation global since 2016, including Go1, Gilmour Space and VALD. It sits within the institutional QIC Private Equity platform, which manages A$9.2 billion globally in private equity assets from offices in the US, Europe and Australia.

About UniQuest    UniQuest Pty Ltd is the commercialisation company of The University of Queensland. UniQuest operates a captive early-stage venture capital fund, the ‘UniQuest Extension Fund’ (UEF). The fund invests in technology companies stemming from UQ Research and the UQ community, including students, researchers and alumni. The fund also supports the broader goal of increasing the impact of UQ innovation nationally and globally thereby enriching the Australian investment capital landscape. UEF is sector agnostic and invests from pre-seed to early growth stages and beyond. For more information. Please visit uef.vc

 About Significant Capital Ventures    Significant Capital Ventures is an early-stage venture capital firm investing in Australian deep and applied tech across sectors, with a mission to back today’s innovators to become tomorrow’s leaders. Significant invests early to provide the greatest impact with potential for highest returns. Head-quartered in Canberra, Australia, its team has deep technical and commercial expertise with proven track record as investors, scientists and founders with a mission to support and grow Australian technology businesses globally. The Significant portfolio currently consists of 14 companies with investments across various stages of growth from Pre-Seed through to Growth/Series B. For more information, please visit https://significant.vc/

About Branch Venture Group    Branch Venture Group is an angel investment network headquartered in Boston, Massachusetts that invests in the frontiers of food, technology, and sustainability to generate superior returns and impact. Currently the group, and its members, are invested in 47 US-based early-stage companies leading food industry evolution and change. The Branch network supports entrepreneurs with capital, industry expertise, and mentorship, leveraging the investors’ knowledge to help startups grow and succeed. For more information, please visit http://www.branchventuregroup.com.

About Redstick Ventures    At Redstick, we back founders with big ideas, backed by diverse talents and a passion for innovation. Focused on early-stage food tech, we invest in game-changing ventures that transform the food ecosystem—from farm to fork. Specializing in pre-seed and seed stage companies across North America, we’re fueling the future of food with innovations like automated farming and AI-powered food services. Our team of industry experts and veterans offers the support and expertise to help these companies thrive. Ready to disrupt the status quo? Let’s make it happen: https://www.redstickvc.com/

About Investible    Investible is an Asia-Pacific-based early-stage venture capital firm backing the visionaries advancing humanity through technology. Founded in 2014 and with offices in Sydney and Singapore, its unique approach to early-stage tech investment sees its cross-sector and climate tech VC Funds co-investing alongside members of Club Investible, an active, global investor syndicate and community. The Investible portfolio includes more than 130 technology companies across 11 countries and 20 sectors including Canva, Ipsy, Car Next Door, Quantum Brilliance, Eden Farm, Applied EV and more. For more information please visit https://www.investible.com/

About Closed Loop Partners    Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments. Closed Loop Capital Management manages venture capital, growth equity, buyout and catalytic private credit investment strategies on behalf of global corporations, financial institutions, and family offices. The Center for the Circular Economy unites competitors and partners to tackle complex material challenges and implement systemic change to advance circularity. Circular Services employs innovative technology within reuse, recycling, remanufacturing and re-commerce solutions to improve regional economic and environmental outcomes, and build resilient systems that keep food & organics, textiles, electronics, packaging and more, in circulation and out of landfill or the natural environment. Closed Loop Partners is based in New York City and is a registered B Corp. For more information, please visit www.closedlooppartners.com