TemperPack is taking 2020 in stride with a large capital raise that will help the company double the production of its flagship insulation product, ClimaCell.
The Richmond-based startup closed on a $31 million Series C raise at the end of last month, bringing TemperPack's total funding to more than $80 million since it was founded in 2015. The company also raised $13 million in equity in December.
Temperpack's mission statement, "We protect products with packaging that protects the Earth," sums up how the startup's ClimaCell recyclable packaging -- launched in 2018 -- aims to replace landfill-bound packaging materials. Among the companies using its innovative packaging include HelloFresh, Illumina, New England Biolabs and UPS Healthcare.
Led by co-founders James McGoff, Brian Powers and Charles Vincent, the startup experienced growth in early 2020 that Powers said intensified quickly as Covid-19 caused more and more people to utilize meal-kit delivery services and online grocery shopping.
"In Q2 we saw a big increase in demand as more and more people ordered food and medicine to their homes," he said. "It took us a while to get our supply up, but we've been able to max out our capacity and scale up."
Powers said the funding will allow TemperPack to double manufacturing capacity in their facility. Currently, the company employs about 220 people.
In addition to food shipments, McGoff said ClimaCell is used in the life sciences industry to ship temperature-sensitive materials like medical kits, diagnostics and biologic drugs.
"We're seeing a lot more collaboration on the cold-chain shipping, so we're doubling down because we believe [ClimaCell] hits all the criteria to be the new standard in the marketplace," he said.
Powers said that while they're focusing on the current expansion plans, they's also looking toward the future by testing the ClimaCell technology as protective packaging for shipping furniture.
"We've started some exciting trials," he said. "There's a lot of Styrofoam used in shipping to ensure furniture doesn't get damaged, and there's a big demand from consumers to use less of that type of product. Our product works really well in preventing damage."