Uncaged Innovations raises $5.6 Million to advance grain-free leather alternative

Uncaged Innovations, a biomaterials start-up based in New York, announced that it has successfully raised 5.6 million USD in a seed investment round. The proceeds will be used to fund the commercial launch of the company's grain-based leather as well as the expansion of its team, including its manufacturing team.

An emerging next-gen leather company, Uncaged Innovations, was founded in New York in 2020 by CEO Stephanie Downs and CTO Dr. Xiaokun Wang. Through the company’s technology platform, BioFuze, Uncaged has developed a process that integrates structural proteins derived from grains into fibrous networks, creating a new material that replicates the feel and functionality of conventional leather.

According to the company, its new biomaterial leather emits 95 percent less greenhouse gases (GHG), is made using 93 percent less water and 72 percent less energy than traditional animal leather, and is completely plastic-free.

Uncaged aims to provide a more eco-friendly substitute for conventional cow leather sourced from the livestock sector, which is responsible for approximately 14.5 percent of global greenhouse gas emissions (including meat and dairy production.) Additionally, the cattle industry uses substantial water resources, with around 2,000 gallons needed to produce a single pound of beef.

“The tide has turned aggressively toward materials that are sustainable, and we plan to capture that momentum,” said Stephanie Downs, CEO and co-founder of Uncaged Innovations, in a statement. “This funding round brings Uncaged another step closer to achieving our ultimate goal of disrupting every industry that relies on leather.”

The seed round was led by Green Circle Foodtech Ventures and Fall Line Capital, together with Ponderosa Ventures, Golden Seeds, and existing investor InMotion Ventures, the investment arm of JLR (Jaguar Land Rover). It follows on from a 2 million USD pre-seed round last year, which included investments from VegInvest, InMotion Ventures, and other contributors.

“What Uncaged Innovations has achieved with its grain-based technology is a significant breakthrough in an industry that has long awaited a breakout innovation,” said Stu Strumwasser, founder and managing director of Green Circle Capital, in a statement. “The opportunity is enormous, and we believe that their ability to provide a high-quality material that is scaled and price competitive is a game changer.”

Eric O’Brien, founder and managing director of Fall Line Capital, added: “While others have attempted to replicate leather using various inputs, we felt the use of structural proteins to mimic collagen was transformational. We understand the margin pressure farmers face growing commodity grains, and we are constantly on the lookout for ways to help them capture more value from their production.”

“By diversifying and applying greater value to agricultural streams, we can strengthen our farm systems and provide consumers with more sustainable goods.”