Arda Biomaterials, a chemistry technology company focused on the sustainable applications of plant-based proteins, has raised $5.25 million in a funding round led by Oyster Bay Venture Capital, based in Germany. The oversubscribed round also saw participation from Clean Growth Fund, Kadmos Capital, and Green Angel Ventures, marking a significant step toward advancing the company’s innovative materials.
Arda Biomaterials has developed a sustainable alternative to leather, known as “New Grain,” derived from spent barley grains, a byproduct of beer and whisky production. This animal- and plastic-free material is biodegradable and can be customized for various applications, offering a solution for industries seeking eco-friendly alternatives to traditional leather.
The new funding will allow Arda to enhance its production capabilities and expand its operations. According to co-founders Brett Cotten and Edward (TJ) Mitchell, the company is in the process of establishing a new facility in London’s Bermondsey Beer Mile, which will be five times larger than its current space. The new site will include dedicated production areas, an R&D lab, and office facilities. Additionally, the company plans to transition from a batch-based process to a continuous roll-to-roll production method, a more scalable approach to manufacturing.
Cotten and Mitchell emphasized that their ultimate goal is to co-locate their production processes with a brewery, which would allow for large-scale manufacturing and the creation of commercial partnerships. They also mentioned that their initial focus on breweries and distilleries stems from their well-established supply chains, which can support the mass production of sustainable materials.
Arda’s breakthrough comes at a time when industries, especially fashion, automotive, and home goods, are increasingly seeking alternatives to animal-based and plastic materials. The company’s innovation also aligns with growing regulatory pressure around deforestation, material waste, and carbon emissions, presenting significant market opportunities.
In a recent interview, Cotten and Mitchell discussed their vision for the company, stressing their commitment to reducing humanity’s reliance on animal products and plastics. Cotten explained, “Breweries and distilleries can do much more than provide feedstock. They have internal science and engineering expertise, as well as established commercial networks with major brands in sectors like fashion and automotive.”
The team’s approach involves extracting plant-based proteins from spent grain and transforming them into a material resembling vegetable-tanned leather. This process does not involve plastics or petrochemicals, and the resulting material is suitable for a wide range of uses, including fashion, automotive interiors, and home goods.
Arda Biomaterials recently joined the 100+ Accelerator, a corporate initiative backed by global companies like AB InBev, Danone, Unilever, Coca-Cola, and Colgate-Palmolive. As part of this program, the company will conduct a pilot project with AB InBev, a global brewing giant.
The company aims to produce up to 10 million square feet of material annually from a single facility, serving industries that require scalable, sustainable alternatives. Cotten and Mitchell are confident that their materials will meet the performance, aesthetic, and price requirements of major industries while significantly reducing environmental impact.
Oyster Bay Venture Capital’s Philip Stark praised Arda’s innovative approach, stating, “We are confident they can build a category-defining champion. At Oyster Bay, we are excited to support them on their journey.” Clean Growth Fund’s Susannah McClintock also highlighted the potential of Arda’s technology to decarbonize industries reliant on animal-based and petrochemical materials.
Investors from Kadmos Capital and Green Angel Ventures echoed this sentiment, recognizing Arda’s scientific foundation and its potential to disrupt traditional manufacturing processes. Green Angel Ventures CEO Cam Ross emphasized, “With the amount of raw resources that society is consuming, new alternatives are vital, and Arda’s innovation is critical in addressing climate change.”
Through these advancements, Arda Biomaterials is positioning itself as a leader in the development of sustainable materials, offering a practical and scalable solution to reduce the environmental impact of industries worldwide.
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