Hempitecture Fundraising Efforts Build on $8.4 Million Grant from the DOE
Hempitecture, a $500k Grow-NY winner, offers the most sustainable plant-based insulating building materials on the planet. In 2024, Hempitecture was awarded an $8.4 million grant from the Department of Energy and secured $1.1 million from the New York State Energy & Research Development Authority. Now, the company aims to build on this momentum by raising $5 million in equity crowdfunding to expand their manufacturing capabilities, develop their supply chain, and finalize their product offerings.
So far, the company has raised over $1.4 million on Wefunder from donors with a shared vision.
Producing healthier, sustainable alternatives to thermal insulation is the main goal of Hempitecture, and the numbers are adding up. Since its founding in 2013, Hempitecture has served 1,562 projects, captured 1,208,256 pounds of CO2, produced 82,580 square feet of insulation, and used 1,008,560 pounds of hemp fiber.
Grow-NY Program Director Jenn Smith recently connected with co-founder and COO Mattie Mead to learn more about Hempitecture’s fundraising efforts and achievements.
Jenn B. Smith: You were recently awarded $8.4M from the DOE. What work will come out of that award?
Mattie Mead: Hempitecture was awarded $8.4M from the Department of Energy through the Office of Manufacturing Energy Supply Chains. The concept proposed for this project is to build a vertically integrated manufacturing plant in northeastern Tennessee. This plant would allow Hempitecture to engage in the agricultural supply chain, stimulating agricultural acreage of fiber hemp cultivation, for its use in Hempitecture’s nonwoven manufacturing process. This facility would also open up new markets for Hempitecture beyond building materials, like geotextiles and automotive.
JBS: Tell us what the latest developments are in your work with NYSERDA.
MM: Working with NYSERDA has been a great example of a public-private partnership. Through NYSERDA’s Natural Carbon Solutions program, they are funding research and development that will enable Hempitecture to close the loop on our manufacturing process, resulting in a zero-waste system that also results in a new product. We are working our way through the NYSERDA process, and it has opened further opportunities within New York State, as well as with other potential partners in New York, such as the Cornell College of Agriculture and Life Sciences (CALS).
JBS: Why is Hempitecture excited to expand capabilities on the East Coast?
MM: Hempitecture manufactures high loft, lightweight, voluminous materials, like thermal insulation. Transporting insulation to the East Coast from our manufacturing hub in Idaho is costly, as well as carbon-intensive. Expanding to the East Coast is essential. It will allow us to reach one of our most growing markets, the Northeast, more efficiently, affordably, and sustainably.
JBS: What are the biggest challenges your startup is grappling with at this stage of growth?
MM: Hempitecture is a manufacturing business at its core, and our selling platform is built on custom technology that allows us to sell our products across the country efficiently. Despite being at the union of manufacturing and technology, funding manufacturing businesses generally falls outside the thesis of traditional venture capital. VCs often look towards low capex models that can scale, i.e. technology, software, AI, and related spaces. As such, fundraising from private sources has been a challenge. That’s why we have fundraised through mechanisms like equity crowdfunding, as well as through state and federal funding opportunities.
JBS: What went into your decision to use crowdfunding at this juncture of Hempitecture’s scaling?
MM: When we first launched Hempitecture in 2018, and as we gained traction in the following years, we were asked countless times, “How can I invest in your business?” Usually, these were comments from individuals who wanted to personally invest in our business. Regulation crowdfunding is a way to bring in equity financing from both accredited and unaccredited investors alike. It allows individuals to invest a small or large amount into our business, and join us in our mission of decarbonizing industries like the built environment. We believe that equity crowdfunding democratizes the investment process, while also mobilizing an army of brand ambassadors who are truly invested in seeing our success. That’s a large part of why we went back to this fundraising method again in 2024.
JBS: How has your work with Dr. Larry Smart evolved over the past couple of years?
MM: Our relationship with New York State originates from my time as a student at Hobart College in Geneva, NY. Fast forward some years later, some of the leading research on industrial hemp in the US is occurring in Geneva at CALS. Dr. Larry Smart at Cornell University has been more than just a resource, he’s become a partner who’s invaluable in building the NYS supply chain, which will help enable Hempitecture’s presence in the region. While a lot is still behind the scenes and in the earliest planning stages, we are looking forward to how we can envision a deeper relationship with Cornell CALS, that truly helps drive growth and scale in the industrial hemp industry. We believe that the work Cornell CALS and Dr. Larry Smart are doing will help fast-track our work in the state and region.
To invest in Hempitecture’s crowdfunding round, visit their Wefunder page.