Novoloop raises $10M Series A extension

Novoloop, an advanced recycling startup based in Menlo Park, California, has announced an expansion of its Series A funding to $21 million through an oversubscribed extension led by Mistletoe Singapore and Hanwha Solutions, a Korean petrochemical company.

This extension nearly doubles the $11 million initial raise, which was announced in February. The first round of funding was led by Envisioning Partners.

"This round brings together mission-driven financial investors and industry strategics who believe in our vision of a circular economy for plastics," Novoloop CEO Miranda Wang says. "We're thrilled to make that vision a reality by leveraging their access to resources and markets around the world."

This round of investors includes those from the decarbonizing energy, textile and construction sectors from Europe, Asia and the United States. Along with Mistletoe Singapore, the investors are: Valo Ventures, Finland; SOSV, New Jersey; Drive Catalyst, Taiwan; Alante Capital, Santa Barbara, California; and S Cap, New York.

"Leading this round was obvious," Mistletoe founder Taizo Son says. "After seeing Novoloop emerge from R&D [research and development] with a product that solves real-world problems, Mistletoe is a firm believer in the financial and environmental impact the company will create."

Son adds, "We're already looking at ways to amplify this impact in places that really need it, like Asian countries where the economy is fast-growing and the waste problem is serious."

Novoloop uses its ATOD technology to make high-performance chemicals and materials from polyethylene (PE)?—a commonly used but not-often recycled plastic. The company says its first product, Oistre, is the world's only thermoplastic polyurethane (TPU) made from postconsumer (PCR) waste that matches the performance of TPUs derived from petrochemicals.

The company will use the capital to begin developing industrial capabilities, and key initiatives include scaling up pilot production to make Oistre more readily available for customers, and also will set up a feedstock pretreatment unit to assess the quality of PCR waste from material recovery sources.

"Novoloop's technology is solid and unique," a spokesperson from Hanwha Solutions says. "We look forward to collaborating with Novoloop on upcycling carbon content in waste for the circular economy."