Dutch Packaging Firm Turns Starch Into a $2.1M Bet on Green Growth

Jan de Vries · 2026-10-30

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibres, just landed a €2 million loan (about $2.1 million) from Invest International. The money will help expand its production facility in the Czech Republic and boost working capital for its plants in Malaysia and the U.S. Invest International is a Dutch government-backed organization based in The Hague. It supports Dutch and Dutch-linked businesses by providing financial backing, foreign market knowledge, and sector expertise. Jeroen Plag, Chief Investment Officer at Invest International, said, “PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company. Our involvement dates back to 2020, when we supported the company during its first expansion into the Czech Republic.” He added, “With this new investment, we’re helping to enable the next phase of growth at a time when traditional financiers still view it as too risky. For the Netherlands, it’s crucial that we help green leaders in the manufacturing industry scale up. This way, we retain innovation within our own country and demonstrate that sustainability and international competitiveness go hand in hand.” ### From IT roots to global packaging player Founded in 1998 by Vertis Holding, a former Dutch IT company, PaperFoam is headquartered in Barneveld. The company has production facilities in the Netherlands, the Czech Republic, the United States, and Malaysia. It’s owned by PaperFoam Holding b.v., with Nissha Co. Ltd., a Japanese stock-listed company, holding 30% since March 2023. The remaining 70% is owned by Sustainable Pioneers Holding b.v., a Dutch entity. PaperFoam develops packaging solutions based on starch and natural fibres as a full alternative to conventional plastic and paper. Using its patented foaming technology and natural raw materials, the company creates lightweight packaging with an “exceptionally low” carbon footprint. The material is fully compostable, and the fibres can be easily recycled into paper. ### What makes PaperFoam different? PaperFoam Plus is thicker and stronger than standard PaperFoam and is designed as a sustainable alternative to EPS (Expanded Polystyrene). It offers protective qualities (drop-tested up to 11 lbs), is up to 0.2 inches thick, and is compostable in both home and industrial composters. The company serves customers in sectors such as consumer electronics, medical, dry food, and cosmetics. Willem Derkman, CEO of PaperFoam, said, “Developing an innovative and sustainable alternative to traditional packaging requires time, investment, and partners who are willing to look further ahead. Thanks to the ongoing support from Invest International, we have been able to take important steps in our international growth. This funding helps us further expand our production capacity and efficiently serve new markets and clients.” According to the company, production machinery from Dutch suppliers Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld makes the expansion possible in part. ### Why this matters for European startups For European startups in the packaging and sustainability space, PaperFoam’s journey offers a few lessons: - **Patience pays off:** It took over two decades for PaperFoam to reach this scale, showing that deep tech and manufacturing innovations often require long-term vision. - **Government support can be catalytic:** Invest International’s backing filled a gap that traditional financiers deemed too risky. - **Sustainability and competitiveness go hand in hand:** As Plag noted, retaining innovation locally while competing globally is possible with the right partners. With this new injection of capital, PaperFoam is poised to expand its reach and prove that green manufacturing can be both scalable and financially viable. Keep an eye on this space—starch-based packaging might just be the next big thing in sustainable materials.