Fashion tech startup Unspun today announced it has raised $32 million in a Series B funding round, with proceeds to be used to scale up its technology to reduce waste and carbon emissions in the fashion industry.
The fashion industry is under increasing pressure to address its climate and environmental impacts as one of the leading industrial sources of greenhouse gas (GHG) emissions, water pollution and landfill waste. For example, the European Commission is proposing rules aimed at supporting the sustainable management of textile waste and putting responsibility for the entire life cycle of textile products on producers, noting that only 22% of post-consumer textile waste is collected for reuse or recycling, while the rest is often landfilled or incinerated, and that textile consumption has the fourth-largest impact on climate change and the environment.
Founded in 2015, California-based Unspan offers 3D weaving technology that eliminates waste and emissions, enables circular production in the fashion sector, and reduces production costs. The company’s technology, Vega, weaves thousands of threads into a garment in minutes, which Unspan says allows for near-zero waste and on-demand, local manufacturing. Unspan says the technology enables garments to be produced four times faster in traditional cut-make-trim facilities, reducing emissions by 53%, energy demand by 49% and blue water consumption by 39%. It also says the process is more efficient, with less than 3% of cut fabric wasted, compared to the industry average of 15%.
The funding round was led by deep tech investor DCVC, with participation from Lowercarbon Capital, E12, Decathlon, SOSV and other investors.
Walden Lamb, CEO of Unspan, said:
“Overcapacity has long been taboo in the fashion industry. Now it’s been recognized by a leading climate fund as a critical problem the industry needs to solve urgently. We’re overwhelmed by the enthusiasm and excited to partner with DCVC, Lowercarbon, SOSV climate, Decathlon, and many commercial partners to urgently expand Vega to localize apparel manufacturing across North America and Europe.”
The company has announced multi-year agreements with retailers such as Walmart to deploy Vega machines for local production in both North America and Europe. Vega also has circular supply chain applications, according to Unspun, as the company develops products and manufacturing techniques that can turn garments back into yarn and reweave them into new products.
Anspan says the new funding will enable the company to manufacture more Vega 3D looms and scale the technology as it expands in North America and Europe.
Milo Werner, a general partner at DCVC who will join unspun’s board of directors, said:
“Unspun will bring enormous economic and logistical liberation to the fashion industry by eliminating costly overproduction and dramatically shortening supply chains. We believe aligning profits with climate impact is good business and we are thrilled to help Unspun revolutionize the way clothes are made.”
