Lactips, a France-based dissolvable bioplastic material developer, has closed a €13m ($14.5m) funding round featuring Diamond Edge Ventures, a corporate venturing vehicle for chemicals producer Mitsubishi Chemical Holdings.
The round was led by SPI Fund, an economic development unit managed by state-owned investment bank BPIfrance.
Founded in 2014 by regional tech transfer office Pulsalys, Lactips uses milk proteins as a feedstock to produce soluble bioplastics such as films and carrier bags without the need for oil-based plastics, reducing environmental impact.
The funding will support research and development activities as Lactips prepares to open a new manufacturing facility in 2021. It will also explore entering additional sectors, such as construction, in France and internationally.
Patrick Suel, president of Diamond Edge Ventures, said: “With its natural, biodegradable and edible polymer, Lactips is a gamechanger and promises to help reduce plastic pollution in landfills and the oceans.
“Lactips offers Mitsubishi Chemical Holdings a unique platform to tackle the challenges caused by plastic contamination and we look forward to multiple collaborations to resolve these issues in Japan and elsewhere.” [Translated from French by Global University Venturing]
The company closed a $4.3m round in mid-2018 backed by BASF Venture Capital, a subsidiary of speciality chemicals provider BASF; financial services firms BNP Paribas and Crédit Agricole through BNP Paribas Development and Crédit Agricole Loire Haute-Loire Capital Innovation; and growth equity firm Demeter.
Demeter had previously invested an undisclosed amount in Lactips in 2015 through its D3 A and Emertec 5 units.
The original version of this post appeared on our sister site, Global University Venturing.