An emerging Cincinnati startup looking to play a role in combating climate change has been selected for a highly regarded Boston-based accelerator, and the company’s founder is hoping to use the experience as a bridge for future fundraising.
Metasorbex Corp., an early-stage, deep-tech advanced materials company focusing on climate change, was selected for MassChallenge’s 2023 U.S. Early Stage accelerator, a three-month program for high-impact, high-potential startups.
It joins 186 others invited to participate out of more than 1,100 applicants. The program, which kicked off June 12, is being held virtually this year.
Ed Chan, Metasorbex founder and CEO, said his company applied largely to gain access to the MassChallenge investor network. Metasorbex is also participating in another accelerator, Rochester, N.Y.-based Venture For ClimateTech.
MassChallenge, Boston’s largest startup accelerator and nonprofit, is considered among the world’s most prestigious.
The accelerators are critically important, Chan said, particularly since climate tech is such a new and technical sector.
Metasorbex, specifically, is looking to lower the cost of carbon capture, or the process of absorbing and regenerating carbon dioxide. It’s still a few years away from commercialization.
“We’ve got a business thesis that resonates with customers, but because none of the VCs (venture capitalists) have done this before, they don't know what to look,” Chan said. “No one knows who we are. (This will) walk us through the steps.”
Metasorbex was legally formed in March. The idea is based on technology developed under a currently dormant startup holding company called Groundstar. Chan, who is based in Greater Cincinnati in Loveland, has both a corporate and startup background. He said all four members of the team are engineers by training.
The idea is to reduce emissions and then use to sorbents, or materials that absorb or adsorbs liquids or gases, to convert carbon dioxide into feedstock, or a carbon negative.
“There’s a chemical process that converts captured carbon dioxide into something valuable,” Chan said.
Its market is “hard-to-abate” sectors, such as power, transportation, chemicals, cement and iron/steel. Those account for 60% of the global equivalent CO2 emissions.
Chan said Metasorbex is actively engaged with seven customers. Two are Fortune 50 companies.
“The amount of emission we put out every year on a global basis is just enormous, and it accumulates over time,” Chan said.
The company hopes to secure office space in the region. Metasorbex has recently joined Cintrifuse, a startup catalyst organization based in Over-the-Rhine, and Cintrifuse CEO Pete Blackshaw is now on its advisory board.
It’s also considering centering the company in Knoxville. Groundstar, Metasorbex’s predecessor, was among the first companies to graduate from the city’s Spark Cleantech Accelerator, backed by the U.S. Department of Energy, the Tennessee Valley Authority and University of Tennessee Research Foundation. Chan said Metasorbex is also working with nearby Oak Ridge National Laboratory.
The office space will depend on fundraising. The company is looking to raise roughly half a million dollars. Chan said he’s starting that process now.
The accelerator will help it tap investors as well as access new hires and customers.
MassChallenge, launched in 2009, promises one-on-one coaching and access to the Leanstack platform, part of its curriculum to find repeatable and scalable business models. Unlike other accelerator programs it does not take company equity.
Since its launch in 2009, it has run programs in 24 countries, supporting more than 4,000 startups, while awarding more than $18 million in equity-free cash and prizes.
