Plastic pollution is one of the most pressing environmental issues. A discarded plastic bottle or bag can pose a serious danger - it harms the environment and threatens all living things. With the development of technology, this situation is being changed through innovative solutions.
One of them was offered by the Ukrainian startup S.Lab, which has been producing eco-friendly packaging from plant components since 2020. In an interview with Mezha.Media, Julia Bialetska, co-founder and CEO of the startup, spoke in detail about the development, market competition, and foreign investors' interest in Ukrainian business.
Tell us how S.Lab started, how and when did the idea come about?
S.Lab started with a desire to act. In 2017, my husband, Yevhen Tomilin, and I were traveling on the island of Bali. One day, while surfing against the backdrop of fantastic nature, we saw a gigantic amount of plastic garbage that had washed up on the beach from the ocean. The situation with foam in the world is catastrophic. It is not recyclable and takes 500 years to decompose. This means that every single product made from polystyrene still ends up in landfills and contaminates soil, oceans, and even our bodies.
This spectacle became the starting point of the project - we felt that we had to do something, and immediately. We started researching the market for alternative materials and packaging methods, reading scientific publications, and talking to experts. Then we started experimenting.
S.Lab offers eco-friendly packaging solutions made from agricultural waste and mushroom mycelium. Why this composition?
We wanted to make a material that would have all the properties of foamed plastic (polystyrene), but at the same time be completely natural and biodegradable. We used industrial hemp as the basis - its fiber has a high strength-to-weight ratio. Next, they began experimenting with adhesives, but it was not easy to find an all-natural glue, because even the most environmentally friendly ones were not so eco-friendly. We decided to try mycelium, the root system of mushrooms that has binding properties. This is how we came up with a durable, reliable, and biodegradable material that can completely replace polystyrene.
Our material has identical thermal insulation and water resistance properties, is more fire-resistant, and after use, it completely decomposes in the soil in 30 days. To do this, you just need to break the package and throw it into the compost in your yard or directly into the ground. No additional recycling services are required.
How long did it take to get the first samples?
We received the first batch of industrial hemp from the Association of Bast Crops, and at the same time we were researching the properties of the mycelium together with the Mykola Kholodny Institute of Botany in Kyiv. Then the experiments on mixing and growing stable material began. We had to find the perfect ratio of cannabis, the amount of mycelium, and even the conditions in which it all grows - temperature, carbon dioxide, and oxygen levels in the air.
How did you find your first clients? Tell us who they were and do you still cooperate?
One of our first orders was the décor for the Altruist restaurant in Kyiv. Also, when we were just starting out, we collaborated with interior designer Yova Yager and together created a collection of home goods. We made vases, chandeliers, table lamps, candlesticks, and decorative tableware.
In general, at the beginning we worked in three areas: materials for construction, decor and packaging. Then we decided to focus on packaging, as it turned out that this market was in the greatest need of new, more environmentally friendly solutions. Styrofoam packaging is one of the world's main pollutants, and it is widely used in various industries. Therefore, by providing a sustainable alternative to foam, we are not only responding to market demand, but also making a significant contribution to environmental protection.
LOréal is among S.Lab's current clients. How did you manage to establish cooperation and what exactly does it involve?
We participated in Unit City's accelerator, which was aimed at cooperation between large companies and startups. It was through this accelerator that we got in direct contact with L'Oreal. They came to a meeting, showed us our material, all its physical properties, and customization.
We can safely say that they were excited about the potential of our solution. For large companies, the transition to eco-friendly packaging is now practically mandatory, because according to a European Parliament directive, all packaging in the EU must be recyclable or reusable by 2030. The aim of this decision is to reduce the amount of plastic waste and overuse of packaging materials, which will lead to the complete elimination of polystyrene in the production of packaging.
For L'Oreal, we created the packaging for their new line of hair care products. Our solution is perfectly aligned with their sustainability goals, helping to reduce their environmental footprint.
Who are your other clients? What business sectors do these companies represent? Are they Ukrainian or foreign businesses?
At S.Lab, we produce replacement foam that can be used in various industries. These include containers for cosmetics and electronics, packaging for decor and clothing, and even insulated boxes for food and pharmaceuticals. In this way, we not only minimize the environmental impact of packaging, but also help businesses become more sustainable.
We are now working with Ukrainian and European companies and entering new markets: Spain, France, Germany, and Switzerland. In Ukraine, we have implemented a pilot project with L'Oréal, are negotiating cooperation with Fozzy Group, and cooperate with cosmetic companies and perfume manufacturers. In Europe, we have successfully completed a pilot project with JTI (Japan Tobacco International).
Can you tell us about the investment in S.Lab? What do you spend your money on and who invests in the company?
In 2023, we closed a pre-seed round, raising €700,000 from business angels, venture capital funds, and accelerators. Investors included Vesna Capital (headed by Andriy Fedoriv), ZAS Ventures, and the world-famous Techstars accelerator. This year we also received grants from Seeds of Bravery and funding from Google for Startups Ukraine Support Fund. We have now opened a seed round of investment.
The money will be used to develop our own technology, as our goal is to optimize our technology and create mini-factories for the production of natural packaging. The production line will be housed in a 12-meter container that can be delivered and installed at the customer's site. This will allow our customers to produce packaging on site, saving logistics costs and reducing associated CO2 emissions.
Are foreign investors interested in investing in Ukrainian business?
In recent years, Ukrainian startups have been increasingly making a name for themselves on the global stage. Our ecosystem has grown significantly, and we've been able to show the world how talented our entrepreneurs are and how many innovative solutions we have to offer. And we finally got the attention and recognition we always deserved. Thanks to the support of the global startup ecosystem, Ukrainian startups have gained access to numerous opportunities, such as participation in international conferences, grants, mentoring, and access to investment.
For example, support from tech giants like Google sends a strong signal to other market players that Ukrainian startups deserve attention and investment.
Foreign investors also recognize this potential and are increasingly interested in investing in Ukrainian startups, which opens up new opportunities for our business development. There are already funds that specifically focus on Ukrainian founders, but investors still primarily evaluate the potential of the startup itself - its innovation, scalability, and market prospects. The most important thing is still the company's ability to solve global problems and offer solutions that are in demand in the global market.
How much competition is there in the market? What sets you apart from other businesses?
Of course, we are not the only producers of mycelium-based materials. However, a common problem that exists in the market is the volume of packaging production and its price. Our innovation is that we manufacture products without using disposable plastic materials. This not only makes the process more environmentally friendly, but also allows us to significantly reduce costs. For example, for every thousand kilograms of packaging, we save about 500 euros and significantly reduce waste. All of our technologies were developed by our engineers and developers specifically for working with plant materials, and they are currently protected by five European Union patents.
How do you see the development of S.Lab?
Now our priority is to scale up, including the development of 12-meter mini-factories capable of producing up to 15 thousand packaging units per month. This process is fully automated: with computer vision, robotic mechanisms, sensors and indicators, but remains easy to set up and maintain. For our customers, this will be a unique tool that will meet their needs for both high volume production and packaging customization.
We are also negotiating with investors as part of a seed round. And, of course, we continue to search for new clients, attend conferences and exhibitions in our industry. We present our capabilities and team to the world. This year I received the EU Prize for Women Innovators from the European Institute of Innovation and Technology (EIT). This award recognizes women whose innovative solutions and research help to overcome global challenges in various fields. Such events are always inspiring, because there are so many like-minded people, great ideas and new perspectives that are breathtaking. When so many people come together for a common goal - to make the world a better place for future generations - it gives you an incredible boost of energy to move forward.