Starch-Based Packaging Startup Lands $2.2M to Take On 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. 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 noted that Invest International has been involved since 2020, when it backed PaperFoam's first expansion into the Czech Republic. ### From IT company to packaging pioneer Founded in 1998 by Vertis Holding, a former Dutch IT company, PaperFoam is headquartered in Barneveld, Netherlands. It produces compostable packaging solutions with facilities in the Netherlands, Czech Republic, U.S., and Malaysia. The company is majority-owned by Sustainable Pioneers Holding, with Japan's Nissha Co. Ltd. holding a 30% stake since March 2023. PaperFoam's technology uses natural raw materials to create lightweight packaging with an exceptionally low carbon footprint. The material is fully compostable, and the fibers can be recycled into paper. Its product, PaperFoam Plus, is a thicker, stronger alternative to EPS (Expanded Polystyrene) foam, offering protection for items up to 11 pounds and compostable in home and industrial composters. ### Solving the plastic problem PaperFoam serves clients in consumer electronics, medical devices, dry food, and cosmetics. 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." He added that the funding will help expand production capacity and serve new markets. The expansion is partly enabled by machinery from Dutch suppliers Kuyer Metaal and Shuffle-Mix. With this loan, PaperFoam is poised to scale its sustainable packaging solutions and reduce reliance on plastic and paper. > "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, Chief Investment Officer at Invest International This investment highlights the growing demand for eco-friendly packaging and the role of government-backed funding in bringing innovative solutions to market.