Closed Loop Partners Doubles Down on Investment in Earthodic, Advancing Coating Alternatives for Paper Packaging

News provided by

Nov 13, 2024, 09:00 ET

Closed Loop Ventures Group joins Earthodic's $4 million seed funding round alongside other leading investors, supporting the company's expansion into the U.S.

NEW YORK, Nov. 13, 2024 /PRNewswire/ -- Closed Loop Partners' Ventures Group announces its follow-on investment in Earthodic, a Brisbane-based biotechnology company creating recyclable bio-based coatings for paper packaging. This is Closed Loop Ventures Group's second investment in Earthodic, supporting the company's expansion into the U.S. The $4 million seed funding round was led by FTW Ventures, with participation from existing investors Closed Loop Partners' Ventures Group, Tenacious Ventures and Investible, and new investors Circulate Capital, Queensland Investment Corporation, UniQuest Fund, Significant Capital Ventures, Branch Venture Group and Redstick Ventures.

The investment is taking place as more corporations demand packaging alternatives that reduce waste while maintaining performance. Today, most paper packaging uses petroleum-based plastic liners that help prevent leakage and maintain temperature but are typically discarded as waste. Closed Loop Ventures Group saw an opportunity to advance bio-based coatings that can enable better performance of existing paper packaging or products and unlock opportunities to switch from non-recoverable single-use plastics to recoverable bio-based alternatives.

Earthodic's Biobarc™ is a water-resistant, repulpable and recyclable coating for paper packaging, offering a solution for brands and packaging manufacturers looking to transition away from wax and polymer film coatings to reduce plastic waste. Earthodic uses lignin––a byproduct of paper manufacturing that is often discarded or burned for energy––and reintegrates it into Biobarc™ to create a recyclable solution for paper packaging. The company is also pursuing third party certifications to ensure Biobarc™'s compostability at industrial composting facilities in the U.S., creating more potential end-of-life pathways for the material.

"This is a key milestone for Earthodic as we expand our reach into new geographic markets, and new paper packaging applications. Advancing a bio-based coating for paperboard can have a significant impact on plastic waste reduction," says Anthony Musumeci, Co-founder and CEO of Earthodic. "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."

Closed Loop Ventures Group's investment in Earthodic advances the group's mandate to deploy early-stage capital to founders and companies who rethink how products are designed, manufactured, consumed and recovered. Since Closed Loop Partners' venture capital group launched in 2016, it has invested in over 40 companies advancing solutions that optimize supply chains and reduce reliance on fossil fuel extraction and landfilling. These range from packaging & plastic alternatives to safer chemistry and supply chain transparency to waste reduction solutions for food & agriculture, retail logistics, renewable energy, water reclamation, built environment and distributed manufacturing.

"Packaging waste comprises 30 percent of materials sent to landfill today, creating a significant challenge for brands and packaging manufactures looking to meet zero waste goals. Earthodic's coating offers a circular solution for paper packaging that can help divert materials from landfill while maintaining the same performance capabilities brands have come to expect from their packaging solutions," said Aly Bryan, Investor on the Closed Loop Ventures Group team at Closed Loop Partners. "Closed Loop Ventures Group is proud to have been among the first investors in Earthodic and we look forward to supporting their growth as they scale throughout the United States with their solution."

With capital from its seed funding round, Earthodic will establish a second headquarters at Western Michigan University Homer Stryker M.D. School of Medicine Innovation Center, situated near a pilot coating plant and testing facilities used extensively by the paper industry. Their main research & development hub will stay in Queensland, Australia. The company will deepen existing research & development partnerships with global leaders in paper packaging while continuing to sell Biobarc™ into non-food contact packaging at scale, as a superior solution to traditional wax and petroleum-based coatings. This will create more opportunities for circularity across the packaging, food and consumer goods industries.

If you are interested in learning more about Closed Loop Partners' Ventures Group, please visit https://www.closedlooppartners.com/

If you are interested in learning more about Earthodic, please visit https://www.earthodic.com/

About Earthodic

Earthodic is on a mission to advance the global transition to a circular economy. We help companies within the paper industry and their customers adopt sustainable packaging solutions, mitigating packaging waste that ends up in landfill. Earthodic has created sustainable function barrier coatings that are certified 100% biobased carbon, to offer liquid water barrier and oil and grease resistance to paper-based packaging. Earthodic coatings utilize lignin, a by-product of the pulp and paper industry, and are a drop-in solution for existing coating infrastructure. Established in 2022, Earthodic has operations across Australia and the USA. To learn more, visit www.earthodic.com.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders. Closed Loop Capital Management manages venture capital, buyout private equity and catalytic private credit investment strategies.

The firm's venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough solutions for the circular economy since 2016. Closed Loop Ventures Group's portfolio includes companies developing leading innovations in material science, robotics, agritech, sustainable consumer products and advanced technologies that further the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about Closed Loop Ventures Group, visit www.closedlooppartners.com.

SOURCE Closed Loop Partners