Brisbane-based climate tech startup Earthodic has successfully raised $6 million (US$4 million) in a Seed funding round aimed at advancing its innovative packaging solutions in the United States. The funding was spearheaded by FTW Ventures, a California-based venture capital firm focused on sustainability within the food systems sector. Additional backing came from Circulate Capital, the Queensland Investment Corporation (QIC), UniQuest Fund, Significant Capital Ventures, and Branch Venture Group, along with participation from several U.S. angel investors. Existing investors such as Tenacious Ventures, Investible, and Closed Loop Partners from New York also contributed to this funding initiative.

Earthodic specializes in developing recyclable bio-based waterproof coatings specifically designed for paper packaging. This revolutionary technology seeks to address the significant issue of packaging waste, which constitutes around 30% of landfill waste. The company’s patented Biobarc coating holds the potential to drastically reduce paper and plastic waste in landfills while eliminating the problems associated with microplastic pollution.

Strategic Expansion Plans

The newly acquired capital will enable Earthodic to expand its product development capabilities and enhance its sales teams. The startup is also focused on establishing manufacturing and distribution partnerships across both the United States and Australia. A key part of their expansion strategy includes the establishment of a U.S. headquarters at the Innovation Center at Western Michigan University in Kalamazoo. This location is particularly advantageous, given its proximity to a pilot coating plant and a paper testing laboratory, as well as a cluster of companies within the paper and packaging industries.

Over the past year, Earthodic has successfully conducted coating trials at WMU's pilot plant, testing various products such as produce punnets and cold-chain packaging. These trials have confirmed that their sustainable coatings enable packaging companies to implement eco-friendly changes without significant operational disruptions.

In a strategic move to enhance its product offerings, Earthodic has also acquired lignin coating patents from the Queensland University of Technology. Lignin, a renewable biopolymer often considered a waste product in paper manufacturing, provides an opportunity for Earthodic to further bolster its sustainability efforts. Additionally, the startup has secured pilot trials with multinational packaging firms and received letters of intent from several global fast-moving consumer goods (FMCG) companies, positioning it favorably within the industry.

Commitment to Sustainability

Anthony Musumeci, CEO of Earthodic, expressed enthusiasm about the support received from sustainability-focused venture capitalists in Australia, the U.S., and Asia. He emphasized the startup’s mission to assist both packaging companies and household brands in reaching their sustainability targets and eliminating non-recyclable waste. Musumeci remarked, “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.”

Jenn Burka from FTW Ventures noted that Earthodic’s technical expertise, sales tenacity, and operational acumen in the sustainable packaging arena were impressive. She stated, “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.”

Earthodic’s recent funding achievement highlights not only a significant milestone for the startup but also the increasing demand for sustainable packaging solutions in today’s market. By merging innovative technology with eco-friendly practices, Earthodic is positioning itself as a frontrunner in the climate tech space. As the company gears up for its expansion into the U.S. market, it aims to transform the landscape of packaging waste management and contribute to a more sustainable future. With robust investor support and a clear vision for growth, Earthodic is poised to navigate the challenges ahead and deliver effective, sustainable solutions to the packaging industry.