Ideaship makes $100,000 patent equity investment in ESG Brands.
Portland, Oregon – Sept. 21, 2023 – Ideaship has closed a $100,000 patent equity investment in local Portland startup ESG Brands. Ideaship invests in startups developing novel intellectual property, and supports portfolio companies in constructing a solid IP foundation to support venture-backed growth.
ESG Brands has developed a unique and proprietary process to convert plant waste from commercial-scale banana production into a revolutionary new natural fiber called BanexTM with potable water as a byproduct. The solution is important in the context of the climate crisis because textile manufacturing is one of the top five contributors to climate change, and raw material inputs play a pivotal role in a textile product’s overall environmental impact. ESG Brands’ process creates a truly circular economy for the #1 consumed fruit in the world, and can be applied in the development of other alternative fibers, such as hemp and flax, as well. The founding team includes former Nike and Columbia leaders responsible for alternative materials sourcing, and while bananas don’t grow in Oregon, ESG Brands is building its home in Portland because it is a national hub for innovative apparel and footwear.
“We’re thrilled about our partnership with Ideaship because we know our process can become the industry standard in an era of rapid climate change, and want to build a company that can capitalize on the potential. The apparel industry needs commercially scalable climate-smart materials fast, and we all need them to get there,” said Chase Kahmann, Co-Founder and CEO of ESG Brands.
Amanda Oborne, Ideaship Managing Director, is also thrilled with the partnership. “Chase and his co-founders have the industry knowledge necessary to solve big problems for apparel makers and build a game-changing Oregon-based global company at the same time.”
Ideaship’s focus on patents is important for startups like ESG Brands. PitchBook research confirms that startups with patents generate significantly higher valuations and exits over non-patent startups. Between 2011 and 2020, deal sizes for patent startups were 40% to 60% larger than those for non-patent startups in a given year, and patent-seeking companies accounted for 79% of VC exit value but only 24% of VC exit count during the same timeframe.
Ideaship is a venture capital firm by Global Technology Transfer Group (GTT Group), currently deploying its third fund. In total, Ideaship funds have made more than 75 investments in startups developing novel intellectual property since 2018.
For more information, please visit ideashipfund.com.