Talk about an investment package.
Richmond’s TemperPack, a maker of sustainable thermal packaging, has raised $22.5 million in Series B financing led by D.C.-based Revolution Growth.
The startup, founded in 2015 by James McGoff, Brian Powers and Charles Vincent, manufactures and distributes sustainable packaging products that replace single-use plastics like Styrofoam with bio-based materials.
As cities like New York, Seattle, D.C. and San Diego ban the use of Styrofoam even as packaging demand grows, TemperPack is well-poised to disrupt the market.
In addition to being harmful to the environment, the company says, packaging waste represents one-third of municipal trash and annually costs local governments billions to dispose of. It estimates it has avoided 15 million pounds of carbon emissions and diverted 10 million pounds of plastic foam from landfills since launching.
“We’re in a race to become the market leader in sustainable thermal packaging and insulation that doesn’t harm the planet. It’s a multibillion-dollar category and it’s dominated by Styrofoam,” Powers told Forbes. “In order to win the market we need to move really quickly.”
Revolution Growth partner Todd Klein, now a board member, said the startup has timing on its side.
"The era of toxic packaging is over, and we believe TemperPack will lead in the elimination of Styrofoam, which is increasingly under regulatory and consumer scrutiny due to its negative impact on the environment," he said in a statement. "As corporations respond to escalating consumer pressure for more environmentally friendly packaging, we expect the demand for TemperPack's products to accelerate quickly."
The company operates two factories in Virginia and Nevada. This $22.5 million round brings its total funding to $40 million.
Following Revolution, other contributors to the round include new investors Harbert Growth Partners, Arborview Capital and Tao Capital Partners, and existing investor SJF Ventures. With the new financing, Klein and Brian Carney, general partner at Harbert Growth Partners, will join the board.
