Arda Biomaterials, a chemistry tech company specializing in plant-based protein materials, has secured a $5.25M investment round, led by Oyster Bay Venture Capital from Germany. The round also includes support from Clean Growth Fund, Kadmos Capital, and Green Angel Ventures. This funding brings Arda’s valuation to a low eight digits, as revealed to TFN.
Arda aims to use this investment to enhance their research and development efforts on New Grain™, a biodegradable, animal-free, and plastic-free leather alternative derived from spent barley grain sourced from breweries and whisky distilleries.
Transforming Brewery Waste into Sustainable Materials
The company’s co-founders, Brett Cotten and Edward (TJ) Mitchell, have big plans for the future. They are building a new, five-times-larger facility in London’s Bermondsey Beer Mile, which will include a dedicated production space, R&D lab, and office. The new site will also enable them to scale from a batch-based process to a continuous roll-to-roll production method, significantly increasing output.
“Once optimized and patented, we’ll look to raise additional funds and partner with a brewery for large-scale production,” said Cotten. “We initially focused on beer breweries and whisky distilleries because of their robust supply chains and established connections with industries like fashion and automotive.”
Founded in 2022, Arda’s mission is to reduce reliance on animals and plastics by creating sustainable alternatives for materials traditionally sourced from animal agriculture and petrochemicals. Arda’s founders met through the Entrepreneur First accelerator and soon realized the potential of upcycling spent grain from local breweries. This insight led them to shift focus from alternative meats to biomaterials.
“We’re committed to eliminating animals and plastics from supply chains and creating exceptional materials for industries such as fashion, automotive, and home goods,” said Mitchell.
New Grain™: A Revolutionary Material
Arda’s New Grain™ material is crafted from the plant-based proteins extracted from spent barley grain. This innovative process replicates the structure of animal-derived materials like leather, wool, and silk, but without the use of plastics or rubber. The company uses advanced biotechnology and chemistry to create a sustainable alternative that is both scalable and cost-effective.
“We use equipment already found in breweries, and we apply plastic-manufacturing techniques without the plastic. This allows us to create high-quality, biodegradable materials,” explained Cotten. “Our material performs similarly to vegetable-tanned leather, but without the environmental impact of traditional leather or plastic alternatives.”
With rising consumer demand for eco-friendly and plastic-free products, Arda is tapping into a large market opportunity. From fashion and footwear to automotive and home goods, there’s increasing pressure on companies to offer sustainable options. Moreover, upcoming regulations related to deforestation, carbon emissions, and end-of-life material disposal are pushing industries to adopt more eco-conscious solutions.
“We see a growing trend toward brands seeking alternatives to animal and plastic-based materials. This shift presents a significant revenue opportunity for companies that embrace sustainable options,” said Cotten.
Arda Technological Advantage
Arda’s patented technology is the key to their success. The company leverages the unique strengths of the brewing and distilling industries to create innovative, scalable materials. By working with established brands, they aim to offer competitively priced, high-performance products that can meet the scale and price requirements of industries like fashion, automotive, and aerospace.
“We work with breweries and distilleries to create materials at competitive prices, which helps us scale faster,” said Cotten. “In the near future, we’ll be able to produce over 1 million square meters of material annually from a single facility.”
Arda’s funding round has garnered strong backing from leading investors in the sustainability space. Philip Stark, Principal at Oyster Bay Venture Capital, expressed his confidence in Arda’s potential: “We’re excited to support Arda as they revolutionize material science with plant-based, sustainable alternatives. Their commitment to creating circular, scalable solutions will have a significant environmental impact.”
Susannah McClintock, Investment Partner at Clean Growth Fund, added: “Arda is leading the charge in decarbonizing industries that rely on traditional animal-based and petrochemical materials. Their innovative approach has the potential to change the future of materials science.”
Arda is planning a series of product launches in 2025 and 2026 as they scale production. The first consumer-facing products, such as cardholders made from New Grain™, will be available later this year. With continued growth and innovation, Arda is poised to play a pivotal role in the transition to more sustainable, circular economies.
