This Dutch Packaging Startup Just Landed $2.2M to Replace Plastic

Jan de Vries · 2026-10-30

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibers, just secured a €2 million loan (about $2.2 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. ### Why This Matters Invest International is a Dutch government-backed organization that supports Dutch-linked businesses with financing and market expertise. Jeroen Plag, Chief Investment Officer, said, "PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company." He noted that traditional financiers still see the company as too risky, but Invest International believes in its potential. ### From Starch to Sustainable Packaging Founded in 1998 by Vertis Holding, PaperFoam is based in Barneveld, Netherlands. It produces compostable packaging using patented foaming technology and natural raw materials. The result is lightweight packaging with an exceptionally low carbon footprint. The material can be recycled into paper, and it breaks down in home or industrial composters. > "Developing an innovative and sustainable alternative to traditional packaging requires time, investment, and partners who are willing to look further ahead," said CEO Willem Derkman. "Thanks to the ongoing support from Invest International, we have been able to take important steps in our international growth." PaperFoam Plus, a thicker and stronger version, is designed to replace EPS (Expanded Polystyrene). It offers protective qualities (drop-tested up to 11 lbs), is up to 0.2 inches thick, and is fully compostable. ### Who's Behind It PaperFoam Holding b.v. is 30% owned by Nissha Co. Ltd., a Japanese stock-listed company, and 70% by Sustainable Pioneers Holding b.v. The company serves clients in consumer electronics, medical, dry food, and cosmetics sectors. ### The Takeaway This investment shows that sustainable packaging is gaining traction, even when traditional lenders are hesitant. For European startups, it's a reminder that government-backed support can be a game-changer in scaling green innovations.