Altered Materials

Short description

Altered Materials is a deep-tech startup developing advanced nano-encapsulation technologies to address severe structural inefficiencies in the agrochemical sector. Today, up to 50% of nutrients are lost to the environment and over 90% of foliar treatments fail to hit their target. This results in an estimated €10 billion in wasted resources every year in Europe alone, alongside significant environmental impacts.

Compared to existing encapsulation solutions—which are often synthetic and rely on abiotic release triggers—the proposed solution is a microplastic-free, biodegradable encapsulation platform that is water-stable and capable of targeted active ingredient delivery. The key differentiator is a ‘plant-responsive’ release mechanism activated by specific biochemical signals from the plant itself. Altered Materials significantly enhances input efficiency, reducing application doses by up to 30% while maintaining crop yields. Meanwhile, agrochemical manufacturers can lower operational costs by optimizing their existing product portfolios in full compliance with environmental regulations.

Altered Materials is radically transforming how nutrients and active ingredients are applied in the field. Putting nature back at the center.

Business and Revenue Model

• Target Market: Southern European and LATAM agrochemical manufacturers with revenues between €20M–€200M, robust R&D capabilities, and mid-to-high product quality. Initial focus is on bioactives and biostimulants, with subsequent expansion into biopesticides.
• Value Proposition: Enhancing formulation performance to enable premium pricing and increased competitiveness. It reduces customer COGS by up to 30% and raises the average gross profit margin from 7% to 13%.
• Go-to-Market Strategy: > * B2B2B Full-tolling: Encapsulating agrochemical active ingredients provided directly by the customer.
  B2B White-label: Encapsulating active ingredients sourced from the market and selling the finished formulation to the agrochemical manufacturer.
• Revenue Model: 2-to-4-year contracts with average ticket sizes of €200K–€500K and volume-based quarterly recurring revenues.
• Scaling Plan: The first pilot plant (5–20 tons/year capacity) is scheduled for mid-2027, targeting a 10x production scale-up every 12–14 months.

Traction

• Commercial Traction: First active PoC (Proof of Concept) with GreenHas Group; a second one is currently under negotiation.
• Sales & Financial Metrics: Sales cycle of approximately 6–8 months to commercial launch, with the goal of launching the first pre-ordered encapsulated product in Q1 2027. Estimated CAC is €10K–€20K, with a potential LTV of €200K–€500K and a potential ARPU of €100K–\€150K.
• Intellectual Property (IP): First Italian patent application filed on 10/30/2025, with technology prior art validated by Bugnion S.p.A. A second patent application is scheduled for Q3 2026, with a PCT extension planned for Q3 2027.
• Key Partnerships: Strategic partnership with Fondazione Agrion for field validation, aimed at reaching TRL 6–7 by Q4 2026.
• Ecosystem & Accelerators: Active participation in TEF Bridge – Encubator, OGR Tech, and I3P.

Spin-off Status: Currently on track to become the first joint spin-off of the Politecnico di Torino and the University of Turin.

ROADMAP & DEVELOPMENT PLAN

2026

• Q4 2026: Achieving TRL 6–7; field validation of stability and plant-responsive release across multiple classes of biostimulant active ingredients in partnership with Fondazione Agrion and Greenhas Group.
• Launch of a second industrial PoC, with one already underway with GreenHas Group. Expected 2026 Revenues: approximately €10K–€20K from pilot projects.

2027

• Q1 2027: Launch of the first encapsulated product in pre-order, alongside the signing of the first commercial contracts with industrial partners.
• Q2 2027: Launch of pilot production with an annual capacity of 5–20 tons.
• Q4 2027: Sales pipeline valued at €300K–€500K.

2028

• 2028: Industrial scale-up toward 100–200 tons/year. Commercial expansion across Europe, with a strategic focus on Spain and France.
• Q4 2028: Entry into the LATAM market and deployment into new application segments, including Animal Care & Nutrition.

Funding need & use of funds

Target Raise: €1.5M–€2M, scheduled to open in late 2026 with a target closing in June 2027. Approximately 50% is expected to come from non-dilutive / subsidized funding to cover plant CAPEX.

Use of Proceeds: The round will be used to support market entry, team expansion, and ongoing R&D investments.

Team & Cap Table

Marco Illich, CEO: Leads strategy, business development, and fundraising, with proven experience in deep-tech startups.

Carlo Amata, CTO: Responsible for technological development and industrial scale-up.

Morena Rolando, CSO: Coordinates agronomic validation across laboratory, greenhouse, and field settings.

Silvia Fraterrigo Garofalo, COO: Supports R&D and operations, with a specific focus on formulations and bio-based materials.

Franco Aquistapace: Leads computational modeling to accelerate technological development.

Enrico Castellani, Fractional Executive: Supports strategy and go-to-market execution, leveraging extensive corporate and entrepreneurial experience.

Cap Table:

ENVIRONMENTAL & SOCIAL IMPACT

The Challenge: Altered Materials addresses a critical environmental and systemic issue driven by inefficiencies in agricultural input application. Today, up to 50% of fertilizers are lost to the environment and over 90% of crop protection products fail to hit their target. This leads to soil and water contamination, greenhouse gas emissions (specifically $N_2O$), and a severe decline in soil fertility.

Our Solution & Impact: Our technology enhances input delivery efficiency, cutting losses by up to 30% and significantly mitigating the associated environmental footprint. Core impact metrics include the reduction of nutrient runoff, lower emissions, optimized input-use efficiency, and a decrease in the overall number of field treatments.

Strategic Alignment: The solution directly aligns with UN SDGs 2 (Zero Hunger), 12 (Responsible Consumption and Production), and 13 (Climate Action), as well as European regulations on sustainability and microplastics restricting synthetic polymers. The benefits span across farmers, the agrochemical industry, and local ecosystems, fostering a more sustainable and resilient agricultural model.

FINANCIAL STRUCTURE

Equity:

• €160K – LaGemma Venture (SAFE) – 2026
• €250K – Second Investor (SAFE, in negotiation – 2026 – closing expected shortly)

Debt:

• None

Grant:

• € 63K – ND
• €80.000 € in incubation/acceleration services and programs
• € 160K – Grant in pending