Solubag, which develops a water-soluble alternative solution to single-use plastic, has secured $4.5 million in Series A funding. The round was led by Exit Ventures with participation from Between the Coasts Ventures, Landon Ainge, a confidential customer, and others. Paul Burgon, Managing Partner at Exit Ventures, joined Solubag’s Board of Directors.
Already, several startups, including Calyxia, Cellugy, and Bioform Technologies raised investments to combat plastic pollution.
Solubag intends to use the funds to expand operations and its development efforts.
Paul Burgon, Managing Partner at Exit Ventures, stated, “We are excited to make a strategic investment in Solubag, a company that is reshaping the future of sustainable materials. Solubag’s unique technology positions it as a leader in the cleantech space, and we look forward to playing a pivotal role in its growth.”
Revolutionary water-soluble plastic
Founded by Cristian Olivares and Roberto Astete in 2020 in the US, Solubag provides an effective solution to the serious problem of plastic and its waste. The company has developed a technology that makes it possible to manufacture flexible and rigid films that dissolve in water without leaving toxic or polluting residues in the environment.
It has modified the formula used in gel caps for vitamins and supplements, patenting it to produce film bags (such as grocery bags and envelopes), woven fabric bags, pet waste bags, laundry sheets, and firmware such as utensils, straws, plates, and cups. Its products require no recycling or separation from other waste, as they dissolve harmlessly in water or soil within weeks or months. Like gel caps, the products are certified food-grade, with raw materials that have a long history of food safety.
The notable aspects of the Solubag plastic are it dissolves in five minutes, leaves no residue causing marine life destruction, and is qualified as suitable for irrigation by the Chilean authorities.
Mike Latham, President and CEO of Solubag, remarked, “The investment by Exit Ventures presents an extraordinary opportunity to expand our reach and accelerate our impact in the marketplace. Their experience in scaling high-growth companies will enable us to achieve our mission of replacing single-use plastics with environmentally responsible products.”
Cristian Olivares, Co-Founder of Solubag, added, “Exit Ventures brings valuable expertise in both cleantech and sustainability, positioning Solubag for profitable growth as we continue to innovate and expand globally.”
Partnership with Pharmapacks
In 2021, Solubag signed a partnership with Pharmapacks, an e-commerce and retail platform to support its expansion by strengthening its North American positioning. The latter distributes Solubag products via Amazon.com and Walmart.com. The partnership also gives Pharmapacks a unique partner to help it find greener solutions for its packaging and operations.