Israeli startup TIPA, which develops biodegradable alternatives for plastic packaging, announced a $4 million funding round, led by R&D partnership Millenium Foodtech.
A plastic alternative?
TIPA's packaging solution should have a shelf life similar to organic waste. The company compares the packaging solution to an orange peel, where eventually 100% of the peel decomposes. TIPA's main goal is to develop sustainable and flexible packaging, without compromising on usability - packaging development focuses on preserving food just like standard plastic-based packaging.
TIPA mentions that the global plastic packaging market is estimated at around $160 billion, and is expected to climb up to $200 billion by 2025. As global outcry for more eco-friendly solutions to replace the heavily polluting plastic packages increases, TIPA wants to establish itself as a key player during the biodegradable revolution.
TIPA CEO Daphna Nissenbaum explained that “Over the years, TIPA has developed smart packaging technology that imitates the way that nature packages its goods, organic packaging. TIPA's packaging solution features similar characteristics to standard food packaging, while also providing an end-of-life use - the sustainable packaging turns into compost within a couple of months. We want to thank Millenium for expressing confidence in TIPA's mission, and for its support in turning the company’s vision into a sustainable and thriving reality that will change history and the world of packaging.”
Millennium Foodtech CEO Chanan Schneider responded when asked about the investment, saying: “We believe that the goods packaging market will go through a major transformation from plastic packaging to reusable and biodegradable solutions. TIPA, and its products, are already positioned in the right place to be a dominant player during this market’s sustainable revolution.”
TIPA was founded in 2010 by CEO Daphna Nissenbaum and SVP Products Tal Neuman. TIPA’s products are currently sold in the U.S., France, UK, and Holland. The company has offices in Israel and New Jersey, with 46 employees stationed in Australia, Europe, and the U.S. To date, TIPA has raised $53 million. Millennium’s investment falls under SAFE funding, meaning that the investment will be converted to stock options at a reduced price as part of TIPA’s next funding round.