PaperFoam's $2.2M Boost: The Starch Packaging Bet Paying Off

Jan de Vries · 2026-10-30

PaperFoam, a Dutch company that makes biodegradable packaging from starch and natural fibers, just landed 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. ### Why This Loan Matters Invest International is a Dutch government-backed organization that supports Dutch-linked businesses with financing and market expertise. Jeroen Plag, the 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 added that traditional financiers still see the company as too risky, but Invest International believes in keeping green innovation at home. > "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." – Jeroen Plag ### From IT to Eco-Packaging Founded in 1998 by Vertis Holding (a former Dutch IT company), PaperFoam is headquartered in Barneveld and operates production sites in the Netherlands, Czech Republic, U.S., and Malaysia. The company is majority-owned by Sustainable Pioneers Holding (70%), with Japan's Nissha Co. Ltd. holding the remaining 30% since March 2023. ### 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 the fibers can be recycled into paper. Their product, PaperFoam Plus, is a thicker, stronger alternative to EPS (Expanded Polystyrene). It's drop-tested up to 11 lbs (5 kg), up to 0.2 inches (5 mm) thick, and compostable in both home and industrial composters. ### Who Uses PaperFoam? - Consumer electronics - Medical devices - Dry food - Cosmetics ### What's Next 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 the funding will help expand production capacity and serve new markets efficiently. The expansion is also made possible in part by Dutch suppliers Kuyer Metaal and Shuffle-Mix, who provide production machinery. With this loan, PaperFoam is poised to scale its sustainable packaging solutions and prove that green manufacturing can be both eco-friendly and globally competitive.