The seaweed packaging company will use the funding to support the development of scalable and sustainable replacements for thin-film plastic packaging derived from petroleum

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Sway has secured $2.5m funding for the development of compostable plastic replacements. (Credit: Andrew Martin from Pixabay)

Seaweed packaging company Sway has secured $2.5m in its initial funding round for the development and piloting of compostable plastic replacements.

Led by Valor Siren Ventures, the funding round witnessed participation from Conservation International Ventures, Alante Capital, BAM Ventures and other industry-aligned investors.

The company will use the funding to support the development of scalable and sustainable replacements for thin-film plastic packaging derived from petroleum.

Sway aims to deliver a naturally carbon-negative and highly accessible bioplastic developed using seaweed, which is a carbon-absorbing and habitat-building resource.

The initial financing will enable the company to boost the development of its first two products, including compostable polybags and retail bags.

It will help the company to conduct initial pilots with mission-aligned partner brands next year.

Sway also stated that the raise also signifies a major investment in the nascent seaweed industry, which is expected to play a significant role in combating climate change through carbon sequestration and ecosystem restoration.

The company is also supported by the Sustainable Ocean Alliance, Centre Street Partners, C3 Capital, and other climate tech, ocean health, and circular economy investors.

Valor Siren Ventures is an early-stage investor in sustainability, food, food technology, retail, and retail technology, while Conservation International Ventures is an investing vehicle of Conservation International that offers financing to enterprises that support healthy ecosystems.

Alante Capital is a fund that invests in sustainable innovations for apparel production and retail, while BAM Ventures is a fund founded by the co-founder and former CEO of The Honest Company and Blue Bottle Coffee former CEO Bryan Meehan.