Xylophane pulls $4M for advanced food packaging

Sweden-based Xylophane said today it raised MSEK 34 million ($4.3 million USD) in an issuance of shares for its packaging material that reduces food waste by extending shelf lives.

Xylophane plans for the money to fund the company for three years and allow it to expand its pilot facility, which is expected to be operating by early October 2009.

The fully subscribed round included new investors SEB Venture Capital and Belgium's Capricorn Venture Partners, which invested through its Capricorn Cleantech Fund. Existing investors KTH Chalmers Capital, Innovationsbron, and Hans and Ingrid Wallstén also contributed capital.

The company developed a biodegradable biopolymer packaging material it says can be used instead of oil-based plastics. The company says it is responding to a growing need for cost-efficient barrier material and production techniques because of the rising price of raw materials including oil and aluminum.

"The company has an exciting, highly sought-after product that offers a fascinating new alternative to an industry looking to replace old barrier solutions with modern, environmentally compatible products," said Björn Österlund, senior investment manager at SEB Venture Capital, in a news release. 

Xylophane says its technology can be easily adapted to modern manufacturing facilities. Sweden is already a global leader in the packaging and paper industry, said Jakob Svärdström, managing partner at KTH Chalmers Capital.

In conjunction with the funding news, Dag Strömqvist became chairman of the board. Strömqvist's background is in the chemical and processing industry for Eka Chemicals and AkzoNobel.