A Denver-based carbon-fiber recycling company rang in the new year with fresh capital.
Vartega secured an $11.2 million equity round on Jan. 5, according to a Form D filed with the U.S. Securities and Exchange Commission.
CEO Andrew Maxey said this is Vartega’s Series A round. It comes seven months after the company raised an approximately $3.1 million round and brings its total funding to date to nearly $22 million.
Vartega uses proprietary technology to recycle carbon fiber, which is used in a variety of everyday objects from cars and golf clubs to tent poles and aircraft. The end result is a sustainable source of carbon fiber bundles that can be used in thermoplastics or polymers that can melt and be molded into various shapes and used — just like new material — to make various products.
“This capital infusion will enable us to expand our operations, enhance our technology and further establish Vartega as a leader in the circular economy,” Maxey said in a statement.
Vartega moved its headquarters from Golden to an 82,000-square-foot Denver facility in late May. The company previously told Colorado Inno it initially committed to a 50,000-square-foot facility but opted to expand. This decision seems to be paying off.
The company said its Series A will be “allocated to fully utilize” its production facility. Work in most of the new facility began in June; Series A funds will expand operations to the facility’s three unused bays.
Funds will also go toward commercializing additional recycling processes.
“What we’re planning on doing here is replicating what we’ve done with carbon fiber and applying that to fiberglass and other advanced materials,” Maxey told Colorado Inno in July.
Vartega plans to continue working with businesses in the sporting goods, automotive, consumer electronics and additive manufacturing industries to integrate recycled carbon fiber into their supply chains.
This Series A round was led by Diamond Edge Ventures, Mitsubishi Chemical Group’s corporate VC arm.
“As the world shifts towards a more sustainable future, we are excited to support Vartega in their mission to transform the materials industry,” Curtis Schickner, president of Diamond Edge Ventures, said in a statement. “Vartega’s innovative approach to carbon fiber recycling aligns with our vision for investing in technologies that positively impact the environment and economically meet current and future customer needs.”
According to the Form D, 16 investors participated in the Series A round. Other investors included HG Ventures, Circular Innovation Fund and Techstars, Vartega said in a statement. (Vartega participated in the Techstars Mobility accelerator in Detroit, Michigan, in 2017.)
Founded in 2014, Vartega’s mission is to solve the world’s toughest advanced materials recycling challenges, Maxey previously said. The company currently has 38 employees and is on track to exceed 100 workers by 2026.
