A local materials science startup has raised an eight-digit funding round to fuel growth.
CleanFiber, which manufactures building insulation from recycled corrugated cardboard, recently closed a $28 million Series B equity funding round, according to a news release. The startup also secured a $31.5 million project financing facility.
The Series B round brings the business’ total capital raised, both equity and debt, to over $100 million, according to CEO Jonathan Strimling. The round was led by sustainability-focused private equity firm Spring Lane Capital, with other notable contributions coming from Climate Innovation Capital, AXA IM Alts and Tokyu Construction/Global Brain.
CleanFiber's $28 million Series B round is the largest local raise in 2023 so far.
The company, which employs about 95 people, moved to Buffalo about seven years ago after winning a $500,000 43North contest prize. The business has also received investments from Western New York Impact Investment Fund.
The company has expanded at its factory on the former Bethlehem Steel site in Blasdell. The startup has completed equipment installation and is working to bring the equipment up to full capacity, according to Strimling.
CleanFiber has grown year-over-year revenue at least 140% over each of the last three years.
The Series B funds will go toward scaling production, expanding the startup’s product portfolio by developing a wider range of products and accelerating market reach by boosting sales and marketing efforts.
CleanFiber is the fourth local company to acknowledge a private, growth-oriented round of funding this year. The list includes TeleSafety ($230,000), SelectFI ($750,000), Top Seedz ($750,000) and CleanFiber ($28 million).
