Australian biopackaging company Earthodic has received a follow-on investment from Closed Loop Partners’ Ventures Group in a $4m seed funding round, led by FTW Ventures.
The funding was Closed Loop’s second investment in the company, which will support Earthodic’s expansion into the US.
Earthodic plans to establish its second headquarters at Western Michigan University’s Innovation Center. This location is strategically chosen for its proximity to a pilot coating plant and testing facilities.
The company’s main research and development hub will remain in Queensland, Australia.
Other investors in the round included existing ones Tenacious Ventures and Investible alongside new investors Circulate Capital, Queensland Investment, UniQuest Fund, Significant Capital Ventures, Branch Venture Group, and Redstick Ventures.
Earthodic co-founder and CEO Anthony Musumeci said: “This is a key milestone for Earthodic as we expand our reach into new geographic markets, and new paper packaging applications. Advancing a biobased coating for paperboard can have a significant impact on plastic waste reduction.
“Closed Loop Partners’ Ventures Group has been a key partner in our growth since they first invested in Earthodic. We are thrilled to continue our partnership with their team as we scale our solution and advance the circularity of packaging.”
Earthodic will use the investment to address increasing demand from corporations for packaging alternatives that minimise waste without compromising performance.
Traditional paper packaging often utilises petroleum-based plastic liners, which are not recoverable after use.
Earthodic claims its Biobarc product features a water-resistant, repulpable, and recyclable coating for paper packaging. By using lignin, a paper manufacturing byproduct, the company turns waste into a resource.
The company is also working towards third-party certifications to verify Biobarc’s compostability in industrial composting facilities in the US.
Closed Loop Ventures Group’s investment aligns with its strategy to fund early-stage companies that are reimagining product design, manufacturing, consumption, and recovery processes.
Since 2016, the venture capital group has invested in more than 40 companies that are driving innovations across various sectors.
