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Conventional plastics can be made biodegradable - in landfills, in commercial compost facilities, and in natural bodies of water.

Tim Dunn Tue, 2012-05-01 21:41

Tim Dunn · Tue, 05/01/2012 - 21:41

Business

Business Overview: 

Conventional plastics can be made biodegradable in landfills, in compost facilities, and in natural bodies of water, at a modest cost, and at a high profit margin.  The additive which accomplishes this is non-toxic, and can be used in food contact applications, including in the EU.  A further benefit of this process is that plastics become feedstock for methane harvesting, if biodegraded anaerobically.  Earth Nurture is seeking funding to bring this technology to the marketplace - especially in India, which is about to ban non-biodegradable plastic bags.

Industry: 
Project Location: 
Arlington, WA, 98223
United States
What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?: 

The first batch has been tested, and proven to cause the biodegradation of plastic in both aerobic and anaerobic environments - that is to say, in environments equivalent to landfills and commercial compost facilities.

What is your total and operating cash burn (the amount you're spending) per month? : 

100,000

How many future rounds of financing do you project? : 

Probably none.  The profit margins are high, and the expected expenses are not.

Services Desired: 
Legal-Intellectual Property
Who is the Customer?: 

Manufacturers of disposable plastic products.

What is the Customer Pain that you are solving?: 

Rejection of disposable plastic products - Plastic disposable bags have been outlawed in Ireland, Italy, China, and soon, in India.  PET water bottling companies are being attacked.  Plastic food containers for takeout business are being more and more outlawed.  Ultimately, every manufacturer of any disposable item that incorporates plastic is under threat of being legislated out of business, because conventional plastics are not biodegradable.

Names of any current or recent customers: 

This is a start up, but I have inquiries from a number of large companies.

What is the Target Market?: 

Manufacturers of plastic disposable items - there are 90 million tons of disposable plastic items made every year, worldwide.

How big is the Target Market in terms of Annual Sales?: 
$5B-$50B
Sales/Marketing Strategy: 

I have many manufacturers awaiting samples - otherwise, trade magazines, trade shows, and press releases.   I also have an international sales team in place in many countries.

Provide use cases : 

The typical disposable shopping bag will disappear in a month or two in a landfill, and will biodegrade in a time acceptable to compost facilities.

Competition: 

This additive is 25 times more effective than the only competitor - at half the price.

One-line Pitch: 

This logo will be as well known as Microsoft's windows logo.

Business Model: 

Outsource the manufacture of plastic additive, and sell the product.

Product/Services Overview (what does it do): 

It makes conventional plastics biodegradable, at a fraction of the cost of bioplastics, with no changes of any kind required for the plastic manufactuer.

Technology

What makes the technology/business unique and have a defendable competitive advantage?: 

This is proprietary IP - our only competitor is trying to sell a product that is 1/25th. as effective, at two to three times the price.

Describe in detail the technology used in the Project - Address the innovation in significant detail : 

The product is an additive that is added at the time of manufacture to molten thermoplastic.  Such additves are called masterbatch additives, and all plastic manufacturing plants have equipment for adding them at the time of plastic manufacture.  The process of manufacturing, if outsourced, requires the services of a company which can precisely mix and grind powders, such as a neutraceutical company, and the services of a company that can add the powders to plastics and produce plastic beads.  There are many such companies in many countries.

What are the principles of the technology? : 

The additive attracts microorganisms to the disposed-of plastic item, and induces them to consume it.  Contrary to popular belief, many ubiquitous microorganisms have this ability, though they are rarely motivated to use it.

What, if anything, has been proven (and how far is this from a commercial scale)? : 

The additve has been added to LDPE samples, and have been proven to biodegrade it in both aerobic and anaerobic environments.  The results are posted at http://earthnurture.com .

What challenges/risk does the technology face for commercialization?: 

We need to make a test batch for distribution, and obtain international patents to protect the IP.

Team

NameTitle
dunnanddunnCEO
None
Current Investors: 
None

Financials

Amount Sought: 
$1,000,000
If raising funds, what shall the funds be used for?: 

Further testing; international patenting; manufacturing a batch to provide samples to customers who have requested them; salary.

Pre-Money Valuation: 
$10,000,000
Funding Received to Date: 
$0
Amount invested by Founders: 
$300,000
Funding Stage: 
Early/Seed
Funding History: 
Funding Round Funding TypeFunding dateFunding Source/ InvestorsAmountPre-Money valuation
AngelEquity
Internal Rate of Return (IRR): 
1000%

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