Italy’s AlterEco Pulp has closed a €3.5 million seed round to accelerate the development of its fiber-based, compostable packaging technology. The Rome-based startup, founded in 2022, is building a production model designed to transform agricultural by-products into scalable, circular packaging solutions.
The funding round was led by Eureka! Fund I – Technology Transfer, managed by Eureka! Venture SGR, alongside AZIMUT ELTIF – Venture Capital ALIcrowd III and IV and Open Venture. It also included the conversion of a previous €400,000 investment from CDP Venture Capital, originally made through the Fondo Rilancio in 2023.
AlterEco Pulp to drastically reduce reliance on both plastics and paper in single-use packaging. As reported by EU Startups, the CEO and co-founder Giammarco Paronitti stated that “at AlterEco, we believe it is finally possible to reduce the use of plastic and paper in packaging, and we are proving it across multiple sectors – from food service to electronics, as well as pharmaceuticals and perfumery. The interest already shown by major international industrial groups confirms that our vision is the right one.”
AlterEco’s ambition is to tackle deforestation and reduce thousands of tons of CO₂ emissions by offering a viable alternative to traditional single-use plastics and paper products. The startup’s model aims to demonstrate that sustainable packaging can be both technologically advanced and commercially competitive.
At the heart of AlterEco’s innovation lies fiber molding technology, one of the first of its kind developed in Europe. By using annual plant fibers such as bamboo and hemp, as well as agricultural residues like sugarcane bagasse and wheat straw, the company creates compostable and recyclable packaging designed for a true circular economy.
The company’s industrial roadmap, aptly named “Back to (H)Earth!”, outlines plans for a state-of-the-art production plant and a dedicated R&D hub. The goal is to establish an integrated supply chain “from field to pack and back to field,” closing the loop between raw material, finished product, and compostable end-of-life.
Investors from Eureka! Fund, Venture Capital at Azimut Libera Impresa SGR, and Open Venture, praised the company’s strong ESG orientation and ability to build synergies with international partners.
As the EU Packaging and Packaging Waste Regulation (PPWR) continues to reshape the industry, AlterEco Pulp’s trajectory confirms a broader shift: the rise of startups able to translate sustainability goals into industrial solutions at scale.
The €3.5 million seed round marks not only a milestone for AlterEco Pulp but also a signal that the packaging industry is entering a new phase, one where innovation is rooted in the soil, designed for the planet, and engineered for circularity.
Image Credits: AlterEco
