BUFFALO, N.Y. – CleanFiber embodies the Western New York Impact Investment Fund’s place-based social impact mission. The Fund is excited to announce the next phase of that journey as the lead investor in CleanFiber’s $5 million investment round, which closed in May.
The round will support the completion of a $16 million expansion at CleanFiber’s factory in Blasdell and help prepare the company for significant growth.
WNY Impact Investment Fund first invested in CleanFiber in 2018 – just as the company was outfitting its factory on the former Bethlehem Steel site on Route 5 in Blasdell. CleanFiber has now successfully shipped more than 1 million bags of cellulose insulation. In the process, the company has recycled more than 15,000 tons of material and its high-performance insulation is improving energy efficiency in tens of thousands of homes.
CleanFiber employs more than 100 people in Western New York, all of whom earn a living wage. More than 40% of them represent marginalized groups.
WNY Impact Investment Fund has now invested $2.25 million in CleanFiber since 2018, including debt and equity investments. The Fund’s latest investment in the company is $1 million in debt financing.
“Our initial investments in CleanFiber were a statement of belief in their mission to create industry-leading products that are kind to the environment,” WNY Impact Investment Fund CEO Tom Quinn said. “Not only have they fulfilled that vision, the company is setting ambitious new expectations that will give them an even greater impact in Western New York.”
CleanFiber moved to Buffalo in 2018 after winning an award in the 43North business competition, where it pitched a vision of cellulose insulation made from recycled cardboard (which is abundant) instead of newsprint (which has been the industry standard but is dwindling in supply). The company is now posting rapid year-over-year increases in revenue and has a robust sales backlog.
CleanFiber’s expansion and machinery upgrade will bring the total square footage of the facility to 67,000 square feet. CleanFiber took ownership of that facility in 2022.
“We have built a world-class team at CleanFiber, a team committed to the belief that innovation can make a positive difference in the world,” CEO Jon Strimling said. “This new funding enables us to triple production capacity at our Buffalo facility, allowing CleanFiber to reach even more customers and ultimately to have a greater impact.”
Since late 2017, the Fund has invested $8.9 million in 11 regional organizations. Each deal is considered through an impact investing framework, meaning the commercial upside is weighed equally alongside the potential social impact in Western New York. The Fund has raised more than $20 million since its inception to deploy in support of companies in the community, including the recent closure of $12.45 million from new and existing investors.
CleanFiber is an example of how the Fund has helped to catalyze other investment into the Buffalo entrepreneurial economy. In this May financing, the Fund’s lead investment was leveraged with $4 million of investment by other private investors. More than $70 million has now been invested in CleanFiber’s growth.
“We would not be here today without the support of the Western New York Impact Investment Fund, and their early leadership paved the way for investments of tens of millions of dollars by other groups,” Strimling said.
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ABOUT THE WESTERN NEW YORK IMPACT INVESTMENT FUND: The Western New York Impact Investment Fund is an innovative for-profit investment fund made up of corporate, private, and philanthropic investors. The investors are committed to providing a source of funding for socially responsible businesses and organizations located in the eight counties of Western New York while seeking a financial return on their investment. By infusing novel thinking and values into portfolio companies, the Fund and its investors have driven quality social impact through investment in local companies during its first five years, helping to create greater opportunity for growth through place-based impact investing in Western New York. For more information, visit www.wnyimpact.com.
ABOUT CLEANFIBER: CleanFiber makes high performance building insulation from recycled corrugated cardboard. The company’s unique and patented process allows it to produce an advanced form of cellulose insulation that is cleaner, more uniform, and lower in dust than competitive products. Despite its superior performance, the company can offer this product at pricing that is directly competitive with conventional products. The company is scaling up to support a mounting backlog of demand from New York, New England, the MidAtlantic, the Midwest and Eastern Canada from its Buffalo production facility and plans to roll out additional sites nationally and internationally. For more information, please visit www.cleanfiber.com.
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