French startup raises $14.8M in new investment round
Lactips, a young French company that has developed a bio-sourced, biodegradable and water-soluble alternative for numerous industrial plastics, has raised 13 million euros ($14.8 million) in new capital, in a funding round led by Bpifrance’s SPI (Société de Projet Industriel) fund, managed on behalf of the French Government as part of the Investments for the Future Program (PIA), and Diamond Edge Ventures (DEV), the innovation investment arm of Mitsubishi Chemical Holdings Corporation (MCHC).
Lactips designs, develops and markets innovative and natural plastics based on a natural raw material with zero environmental impact. The material is water soluble, which means that it will not contribute to the microplastics problem in the marine environment.
With the support of these investors, the company will be able to accelerate the industrialization of its bioplastic pellets and films to offer a wider selection of fully biodegradable and recyclable bio-sourced packaging. In addition to single-use packaging, Lactips is also eying packaging applications in the food and construction sectors.
While the support from the SPI fund is purely financial, MCHC, which is committed to developing solutions for a sustainable future, will in Japan provide industrial and commercial support as well.
“With its natural, biodegradable and edible polymer, Lactips is a game-changer that holds the promise to help reduce plastic pollution in landfills and oceans. Lactips offers Mitsubishi Chemical Holdings Corporation a unique platform to tackle the challenges created by plastics contamination and we’re looking forward to multiple collaborations to solve such issues in Japan and beyond,” said Patrick Suel, President of Diamond Edge Ventures.
According to Lactips, the funds will allow new jobs to be created, in R&D, commercial operations, industrialization and production, to support the opening of a new production plant at a 2,500 sq.m site, which will involve the revitalization of a former regional industrial hub.
“This 13 million euro ($14.8 million)fundraising is structural and strategic at the same time, thanks to these two new shareholders. This support for our mission, built around a vision of an economy that is more respectful of the environment and human health, will enable us to rapidly transition to the production phase, while continuing to develop the planet’s greenest plastic," said Marie-Hélène Gramatikoff, CEO and co-founder of Lactips.
With 20 million euros ($22.7 million) raised since inception, Lactips now has a group of leading shareholders in place around its co-founders comprised of institutional investors (Bpifrance, Demeter, BNP Paribas Développement, Crédit Agricole Loire Haute-Loire) and industrial experts, positioned to support its commercial development (BASF Venture Capital GbmH and Mitsubishi Chemical Holdings through its DEV’s fund).