Alt.Leather’s $1.1 million seed round marks a new era in Australian bio-based textiles

Melbourne plant-based leather startup Alt.Leather has successfully closed an oversubscribed seed funding round, raising $1.1 million. The round was led by family investment firm Wollemi Capital Group and joined by LaunchVic’s Alice Anderson Fund, Startmate, and The Austin Group.

Founded by Tina Funder, Alt.Leather was shortlisted in SmartCompany’s the Pitch — an early-stage startup competition — in Melbourne in 2023. The company initially set a fundraising target of $750,000 but raised the bar to $1.1 million in response to strong investor interest.

Funder previously launched the vegan handbag brand LOM Australia in 2022, which utilised materials such as cactus and apple leather. Her ambition quickly grew to become Australia’s first 100% bio-based leather alternative.

“I tested many of the biobased alternatives on the market and couldn’t find a suitable material that was petrochemical-free. Given the current climate, it felt like a significant commercial opportunity with the benefit of a positive environmental outcome,” Funder said.

Alt.Leather is not only animal-free, but it also contains zero plastics and utilises agricultural waste to make textiles. The idea is to disrupt the $70 billion plastic leather industry with 100% Australian, ethically sourced ingredients.

“That’s millions of tonnes of fossil-fuel-derived plastic that we can eliminate from the world, the impact we can have is enormous,” Funder said.

And it’s a huge goal, considering the amount of waste the clothing industry creates globally. According to statistics, 1.92 million tonnes of textile waste is produced globally every year, and the industry’s global emissions are currently set to increase by 50% by 2030.

Alt.Leather’s material combines various waste streams and plant derivatives. It offers an eco-friendly alternative to conventional animal and petroleum-based leathers, aligning with the rising global demand for sustainable and circular economy solutions.

“We must act swiftly and creatively to address global emissions and reduce the impact we have on our climate and planet. The creativity of entrepreneurs like Tina Funder helps us reimagine a world where we can enjoy beautifully crafted goods in a sustainable and environmentally friendly way,” Victoria Denholm, Wollemi Capital Group CEO, said.

The funds from the seed round will be used to propel the company forward, focusing on filing a provisional patent and initiating sample production in collaboration with Australian brands. It will also be placing resources into advanced research and development for its product.