USA – Material science company, Cove, has raised an undisclosed investment in a new funding round led by its long-time investor Valor Siren Ventures.

The company’s existing investors, including Lupa Systems, Litani Ventures and other high-profile celebrities, also joined the financing.

Cove states that the new funding will enable it to provide its biodegradable materials and packaging technologies to consumer-packaged goods companies that are striving to reduce plastic usage in the industry.

Valor Equity Partners co-president and partner Jon Shulkin said: “Plastic pollution is in need of real solutions. We are extremely grateful to have partnered with Cove and led multiple financing rounds to support the Company’s vision of creating a sustainable material world.

“We believe Cove has the potential to bring meaningful change to the consumer packaging sector.”

Cove creates sustainable biomaterials and packaging solutions using its proprietary artificial intelligence development tools. The company said that it spent four years developing the packaging and the bottles.

Its packaging solutions are claimed to be home-compostable, biodegradable, naturally occurring, and 100% free from synthetic plastics or microplastics.

In December last year, Cove started commercializing its biodegradable water bottles, after a successful pilot with grocer Erewhon in California.

The company stated that it has received requests from retailers and brands to implement the packaging technology and materials on their products.

Cove CEO and founder, Alex Totterman, said, “We’re thrilled to collaborate with some of the most renowned brands globally to implement our technology and shift away from traditional plastics that contribute to plastic pollution. We believe that by partnering with these brands, we can maximize the reach of our technology.”

This funding comes at a time when the biodegradable packaging market in the USA valued at US$3.35 billion in 2020 is projected to expand at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2028, according to a report by Grand View Research.

The growing consumer awareness regarding environmental sustainability and the increasing adoption of eco-friendly packaging solutions are some of the factors driving market growth.

Additionally, government regulations and initiatives promoting the use of biodegradable packaging are further expected to contribute to the market expansion.