A Chicago startup that's working to improve the shelf-life of produce raised a new round of funding as it works to combat food waste with its innovative packaging insert.
Hazel Technologies announced Monday that it raised a $13 million Series B round led by Pangaea Ventures, a Vancouver-based VC firm that invests in advanced materials companies. Other backers include Chicago-based S2G Ventures, Asahi Kasei Ventures, Rhapsody Venture Partners, Serra Ventures, Valley Oak Investments, Climate Impact Capital and ImpactAssets.
Hazel has now raised nearly $18 million since it launched in 2015.
The startup has developed packaging inserts that release anti-fungal vapor that can extend the shelf-life of fruits and vegetables. Produce companies can drop Hazel’s packets into their shipments, which helps the food stay fresh longer. The company says it can extend the shelf-life of produce up to three times by slowing the aging process and preventing fungus and decay.
Hazel has worked with more than 100 produce companies in the U.S. and Latin America, including Mission Avocado, the world's largest avocado shipper, and Frieda's, a large purveyor of specialty produce.
Hazel, which currently has 20 employees, said it plans to use the new funding to grow its team and launch new products.
"We've delivered a solution that works both economically and environmentally, increasing efficiencies across the entire supply chain, and now we are able to roll these out to address food spoilage in multi-billion dollar markets internationally," Aidan Mouat, CEO at Hazel Technologies, said in a statement.
As somewhat of a side project, Hazel has also created alcohol from the fruit it uses during research and development tests as its Chicago headquarters. Its products, which aren't yet for sale, include plantain whiskey, apricot brandy and limoncello.
