Why we invested in Epoch Biodesign

The problem: Plastic recycling is broken, and health-driven consumer pressure is pushing legislators to demand scalable solutions

As discussed in our “Re-Imagining the Plastics Industry thesis”, plastics account for up to 4.5% of global GHG emissions, yet only 9% are recycled globally. Given plastics’ contribution to global emissions, plastic production is expected to triple by 2060, and imminent circularity regulations, it’s clear that there’s a meaningful market opportunity for innovators in next-generation recycling. To get ahead of incoming legislation and meet consumer demands for sustainability, many companies have set circularity-specific targets, but are experiencing a supply gap for recycled feedstock. In fact, Kearney found that the US market could encounter a 55% supply gap for recycled polyethylene terephthalate (PET) by 2030, and gaps as large as 60–78% for recycled polyethylene (PE). With a platform solution to recycle various types of plastics underway, we’re excited to back a company that is ready to address this gap.

The winning solution: An energy-efficient platform technology breaking down previously unrecyclable waste, powered by an outstanding team

Enter Epoch Biodesign, a synthetic biology company engineering supercharged enzymes to break down the toughest plastics at near ambient conditions. Their approach is low energy by design, does not require any toxic chemicals and can process mixed or impure plastic waste streams back into valuable, virgin-grade feedstocks. Their proprietary AI-driven enzyme discovery platform enables rapid iteration, enabling the company to develop enzymes that work faster, at lower cost, and with higher efficiency than their competitors. With over 40 partnerships across performance apparel, luxury fashion, automotive, and industrial textiles, Epoch is already proving that circularity at scale is within reach. Notably, Inditex and Epoch are collaborating through a multi-year joint development agreement to fast-track the scale-up of Epoch’s nylon recycling technology and advance their circular model. They also invested as part of Epoch’s Series A, showing how impressed they are with Epoch’s technology

In our thesis, we highlight why we believe that enzymes are the winning approach to plastic recycling vs mechanical, chemical and pyrolysis approaches. We built conviction that the winning startup in this space will have a combination of the following areas — and Epoch checks every box:

1. A rockstar team ready for scale-up. Epoch has assembled an exceptional team of scientists, engineers, and business leaders to bring its revolutionary enzyme technology to market. CEO and founder, Jacob Nathan, is one of the most impressive founders we have met to date. He started Epoch during his final year of high school and chose to build the company rather than attend The University of Chicago for biochemistry & economics. He has since led Epoch from an independent study project to a globally recognised innovator. He has also attracted top-tier, senior talent along the way, bringing in seasoned executives across enzyme engineering, computational biology, and engineering scale-up from the likes of BASF, Astra Zeneca, and Dow Chemical. As Epoch expands into full-scale operations, this team is well-equipped to drive the commercialisation of enzymatic recycling and establish Epoch as a leader in circular plastics.
2. A credible platform technology that can develop enzymes for various plastic types, including mixed waste streams. Epoch’s proprietary enzyme engineering platform combines AI, synthetic biology, and robotic automation to engineer various high-performance enzymes, each of which are capable of degrading specific plastic polymers. They apply a highly proprietary integrated computational and wet-lab approach to optimise naturally occurring enzymes for industrial conditions, and generative AI to create novel enzymes for previously impossible target activities. This is important for numerous reasons. Firstly, it means that Epoch simply targets a larger market than competitors whose technology can only recycle one specific type of plastic. Secondly, it allows Epoch to make smart choices in its go-to-market, prioritising nylon, which trades at relatively higher prices and will allow them to get to cost-parity quicker than they could if they would focus on cheaper plastics such as PET. As the company scales and the cost for its process comes down, they can expand into other plastics. Finally, it means that Epoch will be able to provide a solution for mixed plastic streams — a key unlock to address one of recycling’s biggest pain points today. As the platform scales, it will continue to refine its models and expand its capabilities to address an even wider range of plastic waste challenges.

3. A technical economic analysis (TEA) with a credible pathway to cost parity with fossil-fuel derived plastics. One of the most critical factors in Epoch’s success is its clear pathway to cost parity with fossil-based plastics. The company’s TEA demonstrates that its enzymatic recycling process can compete economically by leveraging low-energy processing, efficient breakdown of plastics, and economies of scale as its industrial plant comes online. As mentioned above, Epoch’s platform capabilities also enables them to prioritise go-to-market with plastic types, like nylon, that offer higher margins and thus a faster path to cost parity. In parallel, they can continue to develop enzymes for less expensive plastics like PET, and then scale these up once unit economics have been optimised. By leveraging large language models (LLMs) and unique synthetic biology workflows to navigate the immense protein sequence space, Epoch predicts their mutation impacts on protein stability and function, which significantly reduces the time and cost of traditional experimental methods.

Epoch is EPIC: How the carbon math adds up

Epoch’s platform technology not only addresses a wider market of materials, but is also key to increasing the company’s emissions reduction potential. Our methodology includes Epoch’s recycling potential to target nylon, PET, and certain polyolefins, and applies the usual scale up factors according to the EPIC methodology whereby we assume a category-defining company can capture up to 20% market share by 2050. We also assume a 70% emissions reduction compared to the business as usual impact for each plastic, which Epoch’s life-cycle assessment (LCA) currently shows. The sum of each plastic type results in an estimated carbon savings of well above 100 Mt CO2e/year by 2050. We expect Epoch to generate additional carbon savings as their platform expands to address even more plastic types. We’re thrilled to support Jacob and the entire Epoch team in their journey to make plastic waste history — it’s time to scale!

To learn more about alternative materials and next-generation recycling opportunities more broadly, check out our Re-Imagining the Plastic Industry article published last month.

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