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Taking aim at the single-use plastic problem, Solubag raises $4.5M for its planet-friendly solution

Nancy Dahlberg
Nancy Dahlberg
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We have another climatetech funding in South Florida.

Solubag, a Hallandale Beach-based startup that has created a water-soluble alternative solution to single-use plastic, raised $4.5 million in Series A funding, the company announced this week.

The round was led by Exit Ventures, an early stage VC firm focused on climate technology solutions. Between the Coasts Ventures, Landon Ainge, a confidential customer, and others participated in the round. 

Solubag eliminates the need for single-use plastics with patented biodegradable raw material that dissolves in water. The company has modified the formula used in gel caps for vitamins and supplements, patenting it to produce film bags for groceries, woven fabric bags, pet waste bags, laundry sheets, and utensils such as straws, plates, and cups. The company was founded in Chile in 2014 and expanded to the US in 2020.

“The global plastic alternatives market is estimated to be $16 billion awareness and demand for sustainable packaging solutions,” said Mike Latham, Solubag’s CEO , in the announcement.

The company says its products require no recycling or separation from other waste, as they dissolve in water or soil within weeks or months. The products are certified food-grade, with raw materials that have a long history of food safety. It’s a big problem to solve: Half of all plastic ever created has been manufactured in the past 20 years, and production is expected to double over the next decade, according to Ocean Conservancy. By 2050, if something isn’t done about the plastic problem, some estimates suggest there could be more plastic in the ocean than fish by weight.

“With Solubag’s strong value proposition, sustainability profile and extremely attractive pricing in the single-use plastic alternatives market, we expect Solubag to be a major participant in replacing single-use plastic in the coming years,” said Paul Burgon, managing partner at Exit Ventures, who has joined Solubag’s Board of Directors.

The company plans to use the funds to expand operations and its development efforts.

Solubag is one of a number of climatetech startups that have drawn funding in the Miami-Fort Lauderdale metro area. In the first half of the year, climatetech startups drew over $106 million across 16 investments in South Florida, according to the Mid-Year 2024 eMerge Insights Florida Venture Capital report. Recent fundings have included Exowatt, Blue Frontier, and Apricus generation.

This summer, the Miami metro area was declared a US ClimateTech Hub by the U.S. Department of Commerce’s Economic Development Administration with the mission of turning our region into a top destination for climatetech innovators. With the new designation, the region also drew $19.5 million in funding.

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Nancy Dahlberg
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