PaperFoam's $2.2M Loan: A Big Step for Starch-Based Packaging

Jan de Vries · 2026-10-30

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibers, just secured a $2.2 million loan (€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. Invest International, based in The Hague, is a Dutch government-backed organization that supports Dutch-linked businesses with financing, market knowledge, and sector expertise. This isn't their first rodeo with PaperFoam—they've been involved since 2020. ### Why Invest International Is Backing PaperFoam Jeroen Plag, Chief Investment Officer at Invest International, put it this way: "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 it as too risky, but Invest International believes in keeping green innovation at home. That's a big deal. It shows that even when banks hesitate, government-backed funds can step in to push sustainable manufacturing forward. ### What PaperFoam Actually Does Founded in 1998 by Vertis Holding (a former Dutch IT company), PaperFoam is based in Barneveld, Netherlands. They've been around for a while, quietly building a global presence with production sites in the Netherlands, Czech Republic, U.S., and Malaysia. Their packaging is made from starch and natural fibers—no plastic, no paper. Using a patented foaming technology, they create lightweight packaging with an "exceptionally low" carbon footprint. The material is fully compostable, and the fibers can be recycled into paper. They've also got a product called PaperFoam Plus, which is thicker and stronger. It's designed to replace EPS (Expanded Polystyrene) and can handle drops up to 11 pounds (5 kg). It's up to 0.2 inches (5 mm) thick and compostable in both home and industrial composters. Their customers span consumer electronics, medical devices, dry food, and cosmetics. So next time you unbox a gadget, there's a chance it's protected by PaperFoam. ### The Road Ahead 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." He noted that this funding helps them expand production capacity and serve new markets efficiently. The expansion is also a win for Dutch suppliers: Kuyer Metaal in Nijkerk and Shuffle-Mix in Barneveld provided the production machinery. Ownership-wise, PaperFoam Holding b.v. is 70% owned by Sustainable Pioneers Holding b.v. (a Dutch entity) and 30% by Nissha Co. Ltd., a Japanese stock-listed company, since March 2023. ### What This Means for Sustainable Packaging This loan isn't just about one company. It's a signal that sustainable packaging is gaining traction, even when traditional financiers are cautious. With backing from Invest International, PaperFoam can scale up and show that green manufacturing can be competitive globally. For those following EU Inc news and the European startup scene, this is a reminder that innovation often needs patient capital. And sometimes, a government-backed loan can be the bridge to the next stage of growth. As Plag said, "sustainability and international competitiveness go hand in hand." PaperFoam is proving that point, one starch-based package at a time.