With $1.5 million in newly raised capital on the heels of a successful demonstration of commercial-scale production, renewable chemicals startup Pyran Inc. is preparing for its first commercial plant.
Madison-based Pyran makes a renewable, plant-based chemical that can replace petroleum-based chemicals in the paints and coatings used to make everyday products. The startup says its chemical is a cost-effective alternative to petroleum products, which contribute to climate change through greenhouse gas emissions.
Pyran has produced several initial tons of its product at a contract manufacturing plant in Crosby, Texas, proving it's capable of producing at a commercial scale, Pyran co-founder and chief technology officer Kevin Barnett said. The company is already selling that product to early customers for use in products like nail polish, appliances and car interiors, he said.
"We've made a lot of progress in scaling up our technology," Barnett said. "That is really sparking the final commercial design and siting for a commercial plant for Pyran."
In late February, Pyran closed on the second half of its Series A equity funding round, raising $1.5 million in the latest tranche, Barnett said.
The round was split into two tranches, with the second contingent upon Pyran's ability to produce several tons of its product at the demonstration plant in Texas, Barnett said. The investors were New York-based Arosa Ventures and the Wisconsin Alumni Research Foundation (WARF).
Pyran expects to select a site for its commercial plant by the end of this year and hopes to have it up and running by early 2026, Barnett said. It's seeking a location that's accessible to the biomaterial that goes into its product; that material isn't currently produced in Wisconsin, he said.
The startup is looking at sites in other states and even internationally to establish the company's commercial plant, Barnett said. But Pyran intends to keep its headquarters in Madison, where it also conducts research and development, he said.
Pyran's team consists of around 10 people and the company also works with contractors and customers to develop products, Barnett said. Most of the team is in Wisconsin, he said.
Since its founding in 2018, Pyran has raised around $7.5 million in grants, loans and equity capital, Barnett said. Its previous investors include Green Bay's Tundra Angels, Wisconsin River Business Angels in Plover and gANGELS, an angel investing group affiliated with the startup accelerator gener8tor.
Despite challenging times for the venture capital industry and an uncertain economic environment, Barnett said Pyran has been able to raise capital due to its strong business case as a growing number of global companies look to switch to renewable paints and coatings.
"That's a long-term need," Barnett said. "It's a little protected from the ups and downs of the economy, just because everyone's trying to get carbon neutral by 2050."
