Lignopure receives new investment to expand upcycled lignin ingredient portfolio

Founded in 2019, Lignopure GmbH, which uses lignin as a sustainable ingredient for skincare and other beauty products, has raised €2.4 million in equity capital in addition to previous financing.

In partnership with biorefineries, Lignopure upcycles lignin, a natural polymer found in plants, as a bio-based feedstock and alternative to fossil chemicals such as microplastics. In 2022, Lignopure inaugurated its first GMP-compliant lignin conversion plant, which reportedly recycles 90,000 kg of lignin per year. The company’s technologies include LignoBase (lignin/cellulose), a line of multifunctional cosmetic ingredients based on Lignopure’s particle technology.

LignoBase’s “unique polyphenolic molecular structure” reportedly supports its ability to protect the skin from free radicals and antioxidant activity. As a result, it can be used as an SPF booster in formulations. According to the company, Lignobase demonstrates an in vitro SPF enhancement of 35-75% in both mineral and chemical sunscreen formulations. The technology can also simplify color cosmetic formulations and reduce white spots in sunscreen products. Finally, the technology has a stronger oil absorption capacity than kaolin and bentonite while also providing a soft feel to the skin. It is therefore suitable for formulations that require a matte effect.

Lignopure Investment Drives Portfolio Expansion The company's latest funding round was led by NBank Capital Beteiligungsgesellschaft mbH, with additional investment from Niedersachsen Beteiligungs GmbH & Co. KG (a fund of NiedersachsenMetall), business angel groups (RaakWaark Kaptaal), family offices and existing shareholders.

"We are delighted to have the confidence of our investors," said Lignopure founders Daniela Arango, Joana Gil Chavez and Wienke Reynolds. "This financing enables us to strengthen the company's global presence, lay the foundation for global production with international biorefineries and further expand our product portfolio. With this funding, we are taking an important step towards our mission to decarbonize the chemical industry and make lignin a real alternative to harmful ingredients."

Viktoria Vorwachs, Responsible Investment Manager at NBank Capital said, "Lignopure is a young company that inspires and impresses us with its technology and the spirit of its founders, who have managed to inspire customers and investors with their professionalism and strategic orientation. We are very much looking forward to a good and successful cooperation! In line with our portfolio strategy, we want to actively support the transition from fossil fuels and microplastics to bio-based raw materials."

"I was a judge when Lignopure won second place in the first Future Hamburg Award back in April 2019, and the team convinced me with its sustainable, internationally oriented business model," said Matthias Grychta, angel investor at Raakwark Kaptaal. "That's why I am particularly happy that my colleagues from the fishing industry and I are joining the team together."