Queensland bio-packaging startup Earthodic banks $6 million Seed round for US push

Brisbane startup Earthodic has raised US$4 million (A$6m) in Seed funding as the climate tech packaging solution looks to make its mark in the US. 

The round was led by food systems focused California VC FTW Ventures, with support from Circulate Capital, the Queensland Investment Corporation (QIC), UniQuest Fund, Significant Capital Ventures, Branch Venture Group, RedStick Ventures and other US-based angel investors. Earthodic’s existing backers, local impact investors Tenacious Ventures and Investible, and New York-based Closed Loop Partners, also chipped in. 

Earthodic has developed recyclable bio-based waterproof coatings for paper packaging it hopes will reduce packaging waste, which accounts for around 30% of landfill waste. It’s patented Biobarc coating has the potential to cut paper and plastic from landfills and eliminate microplastic pollution.

The capital will see them expand the product and sales teams, as well as manufacturing and distribution partnerships across the US and Australia. 

Earthodic is setting up a US HQ at the Innovation Center at Western Michigan University in Kalamazoo, near the uni’s pilot coating plant and tappi (paper testing) lab. The area is also home to numerous paper and packaging companies.

Over the past year, Earthodic has conducted coating trials at WMU’s pilot plant for products such as produce punnets and cold-chain packaging, which confirmed the sustainable coatings allow packaging companies to make eco-friendly improvements with minimal disruption.

Earthodics renewable and recyclable bio-coating waterproofs paper packaging

The startup also acquired lignin (a renewable biopolymer considered a waste product in paper making) coating patents from Queensland University of Technology, as well as landing pilot trials with multinational packaging companies, and letters of intent from global FMCG companies. 

Earthodic has also expanded its supply chains in the US, with manufacturing partners at multiple sites capable of commercial scale production.  

Earthodic CEO Anthony Musmeci welcomed the support of leading sustainability and climate VCs in Australia, the 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,” he said.

“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 said Earthodic had impressed them with their technical skill, sales tenacity and operational thinking in tackling sustainable packaging.

“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 utilise materials that would have otherwise been wasted is a great example of how the circular economy can truly achieve a double bottom line,” she said.