Spanish biomaterials company BZERO has completed an oversubscribed seed round raising €1.5m ($1.7m).

This takes the company’s total funding to €2.5m.

The seed round included follow-on backing from Ship2B Ventures, CTL Investments and Torribas. New investors were Impact Shakers Ventures and Viscofan.

Ship2B Ventures fundraising and investment manager Paula Cassà said: “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.” 

The company was established in 2021 by José Espí and Cristina Martín.

It develops thermoplastic starch technology to make home-compostable film measuring seven microns in thickness while retaining the mechanical properties associated with conventional plastic.

Bzero said its materials are intended as a substitute for low-density polyethylene used in products, including bags, labels, food nets and flexible packaging, at the same cost level.

The company is pursuing this as EU packaging regulation moves industry towards lower-impact materials.

The new funding is set to go towards increasing output beyond the current annual production level of 300 tonnes, widening pilot work with food packaging groups, and further developing its bioplastic formulations.

Espí said: "The plastic transition only works if bio-based alternatives can compete on cost, performance, and scale. 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 — and to do it while holding the performance standards our customers and partners require."