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

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 bolster working capital for its plants in Malaysia and the U.S. It's a solid vote of confidence for a company that's been quietly proving that sustainable packaging can be both practical and scalable. ### Why Invest International Stepped In Invest International is a Dutch government-backed organization that supports Dutch-linked businesses with financing and market expertise. Jeroen Plag, its Chief Investment Officer, explained why they backed PaperFoam: "PaperFoam is a great example of a Dutch innovator that has travelled a difficult path from promising technology to an internationally scalable company." He added that traditional financiers still see such ventures as too risky, but Invest International sees the long-term potential. ### From IT Company to Packaging Pioneer Founded in 1998 by Vertis Holding (a former Dutch IT company), PaperFoam is headquartered in Barneveld, Netherlands. It operates production sites in the Netherlands, Czech Republic, U.S., and Malaysia. In March 2023, Japanese stock-listed Nissha Co. Ltd. acquired a 30% stake, with the remaining 70% held by Sustainable Pioneers Holding. ### The Technology Behind the Foam PaperFoam's patented foaming process turns starch and natural fibers into lightweight packaging with an exceptionally low carbon footprint. The material is fully compostable and can be recycled into paper. Their PaperFoam Plus line is thicker and stronger—designed as a sustainable alternative to EPS (Expanded Polystyrene). It's drop-tested up to 11 pounds, up to 0.2 inches thick, and compostable in both home and industrial composters. ### What This Means for the Industry PaperFoam already serves consumer electronics, medical, dry food, and cosmetics companies. CEO Willem Derkman said, "Developing an innovative and sustainable alternative to traditional packaging requires time, investment, and partners who are willing to look further ahead." With this funding, the company can expand capacity and serve new markets more efficiently. The expansion is also a win for Dutch suppliers: machinery from Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld is part of the scale-up. As regulations on single-use plastics tighten worldwide, PaperFoam's growth signals that bio-based alternatives are moving from niche to mainstream. And with backing from a government fund willing to take risks on green tech, it's a model other European startups might look to follow.