Pioneering biomaterials startup, erthos™, secured $6.5 million in an oversubscribed Series A funding round. With this round, erthos™ has now raised a total of $11.2 million to revolutionize the future of sustainable materials.
CEO and Co-Founder Nuha Siddiqui highlighted the importance of this funding, saying, “This funding also empowers us to leverage our brand to challenge existing policies and regulations. We are living in a world where recycling rates are declining, and ‘forever chemicals’ are being widely detected in paper packaging. There are still massive gaps to bridge, and we are eager to collaborate with companies unafraid to disrupt the status quo and recognize the power of biomaterials.”
erthosTM is leading the charge in addressing the global plastic pollution crisis, offering a groundbreaking solution with its proprietary plant-based resin that serves as a sustainable alternative to traditional plastics. Notably, erthosTM simultaneously achieved commercial composting certification for both TUV and BPI for their premier line of biomaterials, a groundbreaking milestone.
The funding round was led by Horizons Ventures, most commonly known for its investments in Impossible Foods and Spotify. Wayne Cheng, Portfolio Curator at Horizons Ventures, expressed enthusiasm for the partnership, stating, “We are thrilled to join erthosTM to radically invent new building blocks of single-use plastics by harnessing the power of nature to offer a truly functional, scalable, and compostable solution to our world.”
This funding round also welcomed the51 Food & AgTech Fund, Thrive Venture Fund at BDC Capital, European-based Francis Family Fund, Telus Pollinator Fund for Good, DcarbonVC, and Middle Cove Capital. Also participating were existing investors, Golden Ventures and Bee Partners.
Alison Sunstrum, Managing Partner of the51 Food & AgTech Fund, emphasized, “erthosTM is a Women-Led breakthrough against fake ‘recyclables and toxic ‘compostable’ cardboard. Real solutions, real change!”
Their resins exhibit not only a reduced carbon footprint but also boast full compostability and mechanical properties akin to standard Polypropylene (PP) and Lower Density Polyethylene (LDPE) used in everyday packaging and consumer goods.
CEO Nuha Siddiqui’s journey began during her time as a student at the University of Toronto, where she decided to tackle the plastic pollution challenge head-on. Together with co-founder Kritika Tyagi and their team, they delved into the science of plastics and explored natural alternatives. This research project eventually evolved into erthosTM, focused on solving the industrial challenges of raw materials.
Today, erthosTM stands as a testament to the power of innovation, with a biomaterials platform that integrates AI-powered tools and an expanding biobased ingredient database to rapidly design sustainable resins for various compostable plastic products. With this new capital infusion, erthosTM aims to expand its commercial and technological growth further, collaborating with leading CPG brands and plastic manufacturers across North America and Asia.
erthosTM’ transformative partnerships include industry giants like AB InBev, recognized as a finalist in the Packaging Europe 2023 Sustainability Awards. Moreover, erthosTM has joined forces with Atlas Copco and Vidon Plastics to develop high-volume sustainable auto-packaging materials for net-zero production facilities, in line with the increasing demand for sustainability in automotive production.
Anthony Salisbury, portfolio product manager at Atlas Copco, explains, “As our automotive customers focus on their responsibilities for sustainable vehicle production, it is vital to us, as a significant supplier, that we help meet these challenges – and we’re delighted to work with the experts at erthos as we strive to do this!”
Less than 2% of venture capital funding typically goes to women-led startups, making erthosTM success all the more remarkable as a next-gen women-founded and led company. Despite industry norms, erthosTM has forged ahead with diversity at its core. They have built a world-class team of scientists, engineers, and environmentalists, predominantly women (52%) and people of color (67%), dedicated to advancing sustainable materials.
About erthosTM
erthosTM is an award-winning biomaterials startup founded by Nuha Siddiqui and Kritika Tyagi with a mission to revolutionize the world of materials by offering plant powered alternatives to traditional plastics inputs such as polypropylene. Their materials are 100% compatible with existing plastic manufacturing systems, sustainably made, and compostable at their end of life. Everyday products like packaging, personal care containers, and tableware can now be seamlessly transformed into a planet-positive alternative with erthosTM materials.
Source
erthos, press release, 2023-09-28.
Supplier
Atlas Copco
DcarbonVC
European-based Francis Family Fund
Horizons Ventures
Impossible Foods
Middle Cove Capital
Spotify
Telus Pollinator Fund for Good
the51 Food & AgTech Fund
Thrive Venture Fund at BDC Capital
Vidon Plastics
Share
Renewable Carbon News – Daily Newsletter
Subscribe to our daily email newsletter – the world's leading newsletter on renewable materials and chemicals
