UNCAGED Innovations, a biomaterials startup that creates sustainable leather, has raised an oversubscribed $5.6 million seed investment. This follows the $2 million in a pre-seed funding round raised back in 2023.
The round was co-led by Green Circle Foodtech Ventures and Fall Line Capital, with participation from Ponderosa Ventures, Golden Seeds, and existing investor InMotion Ventures, the investment arm of JLR, which invested in Energy Source and Carmoola.
Funds utilisation
This investment will support UNCAGED’s commercial launch and allow the company to continue to increase production and expand its team, including growing the manufacturing team.
Stu Strumwasser, Founder and Managing Director of Green Circle Capital, said: “What UNCAGED Innovations has achieved with its grain-based technology is a significant breakthrough in an industry that has long awaited a breakout innovation. The opportunity is enormous, and we believe that their ability to provide a high-quality material that is scaled and price competitive is a game changer.”
Eric O’Brien, Founder and Managing Director of Fall Line Capital, noted: “While others have attempted to replicate leather using various inputs, we felt the use of structural proteins to mimic collagen was transformational. We understand the margin pressure farmers face growing commodity grains, and we are constantly on the lookout for ways to help them capture more value from their production. By diversifying and applying greater value to agricultural streams, we can strengthen our farm systems and provide consumers with more sustainable goods.”
What challenge does it tackle?
The current market for alternative leathers heavily relies on plastic-based materials due to the lack of viable biodegradable options. This limitation stems from the challenge of replicating the biomedical properties found in authentic animal leather. However, as consumer concerns about plastic waste grow, there is a rising demand for eco-friendly alternatives that align with both values and aesthetics. In addition, the leather industry devastates the environment with cattle farming being responsible for 14.5% of greenhouse gas emissions.
UNCAGED Innovations creates sustainable leather from grains, replacing the animal collagen required for traditional leather. Based on the findings in a third-party life cycle analysis, the end product emits 95% less greenhouse gases, 93% less water, and 72% less energy than traditional animal leather. Unlike synthetic leather, which is completely made of plastic, UNCAGED is bio-based and plastic-free.
First-of-its-kind leather alternative
Headquartered in New York, UNCAGED was co-founded by serial entrepreneur Stephanie Downs who launched India’s largest plant alternative meat company and exited a digital marketing agency, and Dr. Xiaokun Wang who has a Ph.D. in Biomedical Engineering from Georgia Tech and worked at Johns Hopkins University.
The company fuses structural proteins from grains with other bio-based elements to create fibral networks, replacing the animal collagen required for traditional leather. Its proprietary technology platform, BioFuze uses roll-to-roll manufacturing techniques to create a biomaterial that mimics the texture and performance of traditional leather.
Stephanie Downs, CEO and Co-Founder of UNCAGED Innovations added: “Green Circle and Fall Line not only share our mission but also bring tremendous operational expertise. The tide has turned aggressively toward sustainable materials, and we plan to capture that momentum. This funding round brings UNCAGED another step closer to achieving our ultimate goal of disrupting every industry that relies on leather.”
What do we think about UNCAGED Innovations?
The biomaterials startup creates sustainable, grain-based leather alternatives and reduces greenhouse gases by 95% compared to traditional leather. With $5.6 million in seed funding, the company aims to expand production and grow its team, addressing the environmental impact of the leather industry and rising demand for eco-friendly alternatives.
