July 2, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

UNCAGED Innovations (UNCAGED), the world’s first leather alternative company making sustainable leather from grains at scale, has closed on an oversubscribed $5.6 million Seed round co-led by Green Circle Foodtech Ventures and Fall Line Capital. 

Ponderosa Ventures, Golden Seeds, and existing investor InMotion Ventures, the investment arm of Jaguar Land Rover, also participated in the round.

This funding follows on the heels of a significant year for UNCAGED that included a $2 million Pre-Seed round backed by VegInvest and InMotion Ventures, among others. 

Co-founded in New York by CEO Stephanie Downs and CTO Dr. Xiaokun Wang, UNCAGED Innovations is reimaging leather for the fashion, automotive, and home goods industries by using plant collagen to create a leather that is biodegradable and sustainable.

As commercial cattle farming is accountable for 14.5 percent of greenhouse gas emissions, and the tanning industry is deeply involved in the use of chemicals and plastic, the leather industry is increasingly being placed under the microscope.

“Green Circle and Fall Line not only share our mission but also bring tremendous operational expertise,” said Stephanie Downs, CEO and co-founder, UNCAGED Innovations. “The tide has turned aggressively toward materials that are sustainable, and we plan to capture that momentum. This funding round brings UNCAGED another step closer to achieving our ultimate goal of disrupting every industry that relies on leather.” 

To make its leather alternative, UNCAGED fuses structural proteins from grains with other bio-based elements to create fibral networks, replacing the animal collagen required for traditional leather. 

Based on the findings of third-party life cycle analysis, the end product emits 95 percent less greenhouse gasses; uses 93 percent less water; and uses 72 percent less energy compared to traditional leather. It also is bio-based and plastic-free, unlike synthetic leather which is completely made of plastic. 

“While others have attempted to replicate leather using various inputs, we felt the use of structural proteins to mimic collagen was transformational,” said Eric O’Brien, founder and managing director, Fall Line Capital.

“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.” 

UNCAGED has already optimized its platform to full-scale production and is currently partnered with Jaguar Land Rover. Moving forward, the capital from this funding round will be used by the company to support its commercial launch and allow for its continued increase in production and expansion of its team, including the manufacturing team. 

“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 Strnwasser, founder and managing director, Green Circle Capital. “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.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and Agtech Intel News. She can be reached at lkiernan-stone@globalaginvesting.com.

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