Industrial hemp fiber processing, manufacturing and technology company BastCore recently announced it has received $2.8 million in funding for its first significant round of venture capital financing.
BastCore specializes in buying hemp stalks and processing them into fiber products, according to a press release. The company says on its website that it produces textile-grade fiber, composite-grade bast fiber, chipped core wood and micronized core wood.
Cannabis investor Poseidon Asset Management took part in the oversubscribed funding round.
“Our capital has helped to create thousands of jobs and millions in tax revenues, and we believe this economic energy is coming to the US industrial hemp industry,” said Morgan Paxhia, Poseidon Asset Management managing director, in a press release.
Poseidon has also limited its exposure to the U.S. cannabidiol (CBD) industry. The company “saw too much money flooding into that space,” Paxhia said in a press release. “But industrial hemp for textiles, automotive, construction, etc., are many multiples the size of CBD, with much greater plant utilization. BastCore has developed innovative industry-leading technology capable of supporting and transforming massive industries.
BastCore is planning to use the funds to enhance its proprietary decortication and degumming technology and hire new workers to serve the high demand from the textile industry in addition to several other markets, the company said in a press release.
“The addressable market opportunity is massive,” said Austin Bryant, BastCore managing director, in the press release. “Billion-dollar opportunities are great, but when you have proprietary technology that can solve the processing issue for the farmers and help them monetize their product in addition to capitalizing on a trillion-dollar market opportunity in terms of end-consumer products, now you have my attention. We always say that we are building more than just a company here; we are building an industry.”
BastCore investors understand the economic impact industrial hemp will have on multiple industries, said Coleman Beale BastCore CEO.
“They recognize the value of BastCore’s leading decortication technology,” Beale said. “It is exciting to see the investment community recognize the critical need to build a consistent, reliable supply chain.”
Beale said that funding would allow BastCore to expand its production considerably.