Vyld advances kelp-based tampon and algae diaper

In Germany, Vyld, a producer of biobased absorbent products, has raised a “seven-figure sum” to launch Kelpon, the world’s first tampon made from seaweed, and proceed with the pilot phase of Vyndel, a compostable diaper with an algae core and no plastic or superabsorbents.

Last fall, the company completed a successful trial for Kelpon with over 100 menstruators, and a pilot project for the diapers is underway in 50 households. A small forest is being grown with the used diapers as fertilizer.

The company said it used a Future Profit Partnership Agreement as a “customized” and “innovative” financing instrument. Essentially, the mezzanine financial instrument combines advantages of equity and debt capital and enables an appropriate return for investors, while at the same time ensuring Vyld’s independence. “Instead of a conventional equity round, they offer a profit share. The agreement ends as soon as the return is achieved,” the company said in a statement.

Another advantage of the FPPA is that new investments can also be raised outside of the typical round logic in equity, giving Vyld additional financial independence