Brisbane-based Earthodic has raised $6 million in seed funding to enhance its development of recyclable biobased coatings for paper packaging and expand its operations into the United States.
The company’s proprietary Biobarc coating aims to replace traditional petrochemical and plastic alternatives, potentially reducing packaging waste and addressing microplastic pollution. Earthodic claims that packaging waste contributes to 30 percent of landfill materials.
The funding will be used to grow Earthodic’s product and sales teams and establish manufacturing and distribution partnerships in Australia and the US. The company plans to set its US headquarters at Western Michigan University’s Innovation Centre, near a pilot coating plant and testing facilities.
Anthony Musumeci, Earthodic’s CEO, highlighted their coating as a drop-in replacement that fits existing manufacturing processes, assisting packaging companies in achieving sustainability goals. He noted that key to their formulation is lignin, a waste product of the pulp and paper industry, which is often burned or sent to landfills. Earthodic aims to turn this excess lignin into an effective coating material.
The funding round was led by California-based FTW Ventures, with participation from Circulate Capital, Queensland Investment Corporation, and others. Existing investors also contributed.
Earthodic has conducted successful trials of its technology at the Western Michigan pilot plant, testing applications like cold-chain packaging and produce containers. The start-up has letters of intent from multinational packaging companies and is ready to scale production.
FTW Ventures partner Jenn Burka noted the significance of Earthodic’s work in sustainable packaging, stating that creating bio-based barrier coatings at scale is crucial for reducing plastic reliance and that the company exemplifies the circular economy’s potential for positive environmental impact.
The latest investment will also support Earthodic’s efforts to enter new markets, including coffee cups and FDA certification for additional products.
