American hemp fiber processing firm BastCore recently locked down $2.8 million in Series A financing that will be used to improve its proprietary hemp decortication and degumming technology, expand capacity at its Montgomery, AL facility and hire new personnel.
“The addressable market opportunity is massive,” BastCore Managing Director Austin Bryant said in a company 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.”
The funding will enable the firm to meet increasing demand from the textiles market and other industries.
“We have limited our exposure to US CBD as we saw too much money flooding into that space, but industrial hemp for textiles, automotive, construction, etc. are many multiples the size of CBD, with much greater plant utilization,” said Morgan Paxhia, managing director of Poseidon Asset Management, which participated in the Series A round. “BastCore has developed innovative industry-leading technology capable of supporting and transforming massive industries. This is a great American story in the making.”
BastCore was established in 2014.
The global market for industrial hemp, including hemp fibers, is forecast to grow at a CAGR of 15.8% between 2020 and 2027, according to a report by business insights firm Grand View Research. In 2019, the market was valued at $4.71 billion.