Vartega secures US$10mn in equity financing

Carbon fiber recycling innovator Vartega has closed its oversubscribed US$10 million preferred equity financing led by Diamond Edge Ventures, the corporate venture capital arm of the Mitsubishi Chemical Group (MCG).

Image © Philip Steury -
Image © Philip Steury -

This funding round also included participation from Circular Innovation Fund and existing investors HG Ventures and Techstars.

Vartega's proprietary recycling processes enable the recovery and conversion of high-performance carbon fiber used in advanced materials for aerospace components, automotive parts and wind turbine blades. The company reduces waste and provides manufacturers with a sustainable source of high-quality recycled carbon fiber via its EasyFeed Bundles known as Fenix Fiber and Fenix Fiber+. Fenix Fiber is a strong, stiff, and lightweight carbon fiber reinforcement for compounded thermoplastics. Fenix Fiber+ is enhanced with high-performance additives such as functionalized graphene.

"Diamond Edge Ventures investment validates our efforts to address the urgent need for sustainable solutions in the composites industry. We are grateful for their support as our lead investor for this pivotal funding round," said Andrew Maxey, CEO of Vartega. “This capital infusion will enable us to expand our operations, enhance our technology, and further establish Vartega as a leader in the circular economy.”

The funds from this financing will be allocated to fully utilize Vartega’s new 82,000 square foot production facility and commercialize additional recycling processes to broaden feedstock availability. The company aims to continue collaborating with industry partners to integrate recycled carbon fiber into various applications, including automotive, additive manufacturing, consumer electronics, and sporting goods.

"As the world shifts towards a more sustainable future, we are excited to support Vartega in their mission to transform the materials industry," said Curtis Schickner, president of Diamond Edge Ventures. "Vartega's innovative approach to carbon fiber recycling aligns with our vision for investing in technologies that positively impact the environment and economically meet current and future customer needs."