BZERO raises US$1.7M to scale compostable starch-based packaging materials

SPAIN – Spanish biomaterials startup BZERO has secured €1.5 million (US$1.7m) in an oversubscribed seed funding round to accelerate the commercialization of its thermoplastic starch technology, strengthening its position in the fast-growing sustainable packaging materials market.

The latest investment brings the company’s total funding to €2.5 million (US$2.9m) since its establishment in 2021 by founders José Espí and Cristina Martín.

The funding round attracted continued support from existing investors Ship2B Ventures, CTL Investments and Torribas, while welcoming new investors Impact Shakers Ventures and Viscofan.

The company develops thermoplastic starch-based materials capable of producing home-compostable films as thin as seven microns while maintaining the mechanical strength typically associated with conventional plastic packaging.

BZERO says its biomaterial is designed to replace low-density polyethylene (LDPE) in a wide range of applications, including shopping bags, labels, food nets and flexible packaging, while remaining cost-competitive with traditional fossil-based plastics.

The investment comes as packaging manufacturers and consumer goods companies seek alternatives to conventional plastics in response to tightening European Union packaging regulations aimed at increasing recyclability, reducing plastic waste and promoting the adoption of lower-impact materials.

According to Paula Cassà, Fundraising and Investment Manager at Ship2B Ventures, the company has made significant progress in transforming laboratory research into commercially viable manufacturing.

“We backed José and Cristina’s team at pre-seed to turn a lab-scale material into an industrial-ready product without losing sight of unit economics and environmental impact. BZERO is now converting its pilots into industrial contracts, which is why we’ve doubled down,” she said.

BZERO plans to use the new capital to expand production capacity beyond its current annual output of 300 tonnes, broaden pilot projects with food packaging manufacturers and continue enhancing the performance of its bioplastic formulations.

“The plastic transition only works if bio-based alternatives can compete on cost, performance and scale,” said co-founder José Espí.

“We have built BZERO around that principle from the start. This round gives us the resources to move from proof-of-concept to commercial volumes while maintaining the performance standards our customers and partners require.”

The investment reflects growing momentum in the bio-based packaging sector, where startups and established manufacturers are accelerating innovation in renewable and compostable materials to meet evolving regulatory requirements and corporate sustainability commitments.

Companies are increasingly focusing on developing materials that match the performance and affordability of conventional plastics while reducing environmental impact, particularly in flexible packaging applications where finding scalable, sustainable alternatives remains one of the industry’s biggest challenges.

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