PlantSwitch, a bioplastics manufacturing company, has successfully concluded its early growth funding round, raising $7.7 million. Among the notable investors is NexPoint, a multi-billion-dollar alternative investment firm, which has injected $2 million into the early fundraise round.
The capital infusion will propel PlantSwitch’s mission to revolutionize single-use plastics by utilizing a proprietary production process that upcycles agricultural waste, ensuring a carbon-negative footprint and offering a cost-effective alternative to traditional bioplastic manufacturing.
NexPoint’s Strategic Investment
NexPoint’s decision to invest in PlantSwitch underscores the firm’s commitment to environmentally sustainable practices and support for early-stage companies with high growth potential.
Leveraging its extensive network and research capabilities, NexPoint identified the company at an early stage, recognizing the innovative potential of its carbon-negative bioplastics production process.
The investment will play a pivotal role in enabling PlantSwitch to scale its production capacity, enhance marketing capabilities, and meet the rising demand for sustainable alternatives in the market.
PlantSwitch’s Unique Approach
Founded in 2020 by SMU graduates Dillon Baxter and Maxime Blandin, PlantSwitch aims to replace all petroleum-based single-use plastics with its compostable bioplastic resin.
The company’s manufacturing process ingeniously combines agricultural waste products, such as rice husks and wheat straw, with a polymer, creating sustainable bioplastics while simultaneously upcycling agricultural waste.
This innovative approach not only contributes to a carbon-negative production process but also results in bioplastics that are more cost-effective to produce and more compostable compared to traditional alternatives.
Scaling Production and Market Reach
The companies recent acquisition of a 52,000-square-foot manufacturing facility in Sanford, N.C., will enhance it’s ability to scale production capacity.
The facility will enable the company to meet the growing demand from its recently secured framework contracts with nationwide restaurant and grocery store chains.
As PlantSwitch begins supplying these clients next month, the founders anticipate expanding their full-time workforce to over 50 employees by the end of 2024 and foresee the need for additional manufacturing space in the coming years.
Industry Potential and Demand
The increasing demand for bioplastics is highlighted by studies forecasting a surge from 4.9 billion pounds in 2022 to nearly 13.9 billion pounds in 2027.
“Having institutional backing is a huge step for PlantSwitch. With this and other investments from our early growth funding round, we will be able to continue to scale our business and deliver sustainable and biodegradable bioplastics to our eager future clients.” – Dillon Baxter, Co-founder and CEO of PlantSwitch
“At NexPoint, we are always looking to support companies that do important work and offer attractive opportunities for growth. PlantSwitch certainly fits that bill and represents an investment that aligns with our values and expertise in Climate Tech businesses.” – Scott Johnson, Managing Director & Portfolio Manager at NexPoint Capital
Federal Grant Recognition
In addition to the successful funding round, PlantSwitch has also received a substantial boost from the U.S. Department of Agriculture in the form of a $4.94 million federal grant.
This recognition further validates PlantSwitch’s innovative approach and reinforces its position as a key player in the bioplastics industry.
As PlantSwitch secures substantial funding and continues to forge partnerships with key players in the industry, its commitment to replacing petroleum-based single-use plastics with sustainable alternatives remains at the forefront.
With NexPoint’s strategic investment, the company is well-positioned to contribute significantly to the demand for eco-friendly alternatives, leading the way towards a more sustainable and environmentally conscious future.
