TFN - Carbon-to-materials startup Rubi has secured $7.5 million in fresh funding, alongside multi-year offtake term sheets worth over $60 million with leading fashion brands and manufacturers. The round was co-led by AP Ventures and FH One Investments, with backing from
Talis Capital, CMPC Ventures,
H&M Group,
Understorey Ventures, and angel investors.
This capital will help Rubi scale its production system to industrial demonstration, expand its product pipeline and enhance the performance and cost efficiency of its engineered enzymes.
What specific market problem does Rubi address? As disclosed by
Neeka Mashouf, co-founder and CEO of Rubi to
TFN, “Rubi’s modular manufacturing system addresses key industry issues today: supply chain resilience, production flexibility, and reduced capital requirements. Our approach enables production that is both more efficient and more flexible than conventional methods, achieving advanced tunability and performance in the end materials.”
Traditional methods for producing essential materials rely heavily on the degradation of natural resources, with industrial processes accounting for approximately 30% of global CO2 emissions. They require extensive deforestation, high water use, and energy-intensive processes, which are incompatible with urgent energy-efficiency needs. As a result, the textile industry, for example, is the third-largest CO2-polluting supply chain globally. Rubi’s technology was first deployed in the fashion industry, and we are now expanding its impact beyond textiles, partnering with major players in the CPG and aerospace industries.
A new industrial model built by sisters Founded in 2021 by Neeka Mashouf and Dr.
Leila Mashouf in San Francisco, the company is working toward a future where essential materials are produced from abundant carbon rather than finite resources.
Rubi’s long-term ambition goes beyond replacing a single material. It is building a new manufacturing system designed for resilience and flexibility. Its modular production units require up to 10 times less capital expenditure than traditional infrastructure and can be deployed closer to where materials are needed. This opens the door to localised manufacturing, reduced transport dependency and more stable supply chains.
The next phase focuses on reaching industrial demonstration scale, where Rubi will produce commercial quantities for customers across textiles and consumer goods formulations. As industries search for cleaner and more adaptable production methods, Rubi’s model offers a compelling alternative, one where manufacturing aligns more closely with both economic and environmental realities.
Detailing their background, Neeka stated, “My sister and co-founder, Leila Mashouf, and I launched our scientific careers at 15, publishing research on artificial photosynthesis and conducting bioengineering work on cancer therapeutics. In 2021, we combined our expertise to tackle one of the industry’s greatest challenges: transforming manufacturing to work in harmony with nature rather than against it.”
“Armed with a bold vision, we bootstrapped Rubi in a public biohacking lab, determined to prove that CO2 could become a valuable resource rather than a harmful waste product. That persistence attracted world-class investors like H&M Group and Patagonia, secured partnerships with leading global brands, and enabled us to build a team of experts at the intersection of enzyme technology, materials science, and low-waste manufacturing. As CEO, I was recently selected to speak at the World Economic Forum’s official program in Davos. Prior to that, I was recognised on the 2025 MIT 35 Under 35 list, and Leila and I were both named among just ten ‘Tomorrow Shapers 2025’ by the European Patent Office.”
From climate problem to manufacturing inputAt the centre of Rubi’s approach is a simple but powerful shift, which is treating carbon dioxide not as waste, but as a raw material. Traditional manufacturing relies heavily on fossil fuels, complex supply chains and large, fixed infrastructure. Rubi flips that model by using a cell-free enzyme platform that converts CO₂ into essential materials such as cellulose-based polymers.
Instead of fermentation or petrochemical processes, the system uses cascades of specialised enzymes to build complex materials step by step. The result is a process that is more flexible, efficient, and adaptable to different end uses.
Machine learning-driven enzyme engineering further sharpens performance, enabling continuous improvements in cost and productivity without overhauling the entire system.
When asked about the motivation of this idea, Neeka stated, “We founded Rubi to address a fundamental gap in how industries manufacture essential materials. Conventional processes demand massive fixed infrastructure, create supply chain fragility, and rely on extractive raw materials—all of which represent serious structural problems for industries like fashion, CPG, and aerospace.”
“We also recognised that waste carbon was an abundant, largely untapped resource, and that existing production methods, whether traditional fermentation or chemical processes, were too inflexible and capital-intensive to meet the demands of modern, resilient supply chains. Rubi was built to solve that: a modular system offering 10x cheaper CapEx needs that can be deployed at the point of need, anywhere in the world, transforming waste carbon into high-performance materials. The market need was clear, and the commercial traction we’ve seen (15 partners and over $60M in offtake agreements) confirms that demand is real, she added.”
How is technology different from others?Rubi’s proprietary technology uses a cascade of specialised enzymes to transform simple 1-carbon molecules into complex carbohydrate polymers like cellulose under mild conditions. While conventional manufacturing demands massive fixed infrastructure, Rubi’s platform can be deployed in modular units anywhere, enabling critical supply chains to be established at the point of need at a fraction of typical infrastructure development costs. AI- and ML-based enzyme engineering complements the platform, continually advancing enzyme performance and yielding immediate gains in cost and productivity.
This contrasts with most alternative production methods, such as fermentation and chemical catalysis systems, which face adoption challenges due to high costs and capital requirements—making them impractical for widespread industrial use. That’s why Rubi’s technology uses cascades of specialised enzymes to transform abundant carbon molecules like CO2 into complex materials, enabling production that is both more efficient and more flexible, with the ability to be on-shored from anywhere.
Detailing about competition, Neeka stated, “While other companies have attempted to utilise CO2 for materials production, Rubi’s cell-free enzymatic process stands apart in its ability to maintain commercial viability.
LanzaTech, for example, uses biological systems to process CO2, but requires significant infrastructure investment and high upfront energy costs, resulting in lower conversion yields. And while companies like Twelve and Fairbrics focus on synthetic polyester production, their energy-intensive processes are constrained by high capital expenditure and substantial operating costs.”
Real demand across fashion, retail and beyondRubi’s progress is not limited to the lab. Over the past year, the company has built strong commercial momentum. In 2025, it signed offtake agreements worth over $60 million, expanded partnerships from seven to 15, and completed fibre performance testing with multiple collaborators. Existing partners include major names like Walmart and Reformation.
The company has also moved into new pilot programmes across consumer packaged goods and aerospace, signalling that its materials platform has applications far beyond textiles.
At the same time, Rubi has gained broader recognition. It was named to the Norrsken Impact/100, while co-founder and CEO Neeka Mashouf earned a place on the MIT 35 Under 35 and spoke at the World Economic Forum in Davos. The company also strengthened its scientific bench, bringing in experts in biocatalysis and enzyme engineering, including Dr. Michael Jewett, Dr.
Richard Fox and Dr.
Alex Patist.
What’s ahead for Rubi?Regarding the plans for the next five years, the co-founder explained, “In the next five years, we aim to advance to an industrial demonstration-scale system and operate full-scale production facilities with multiple global partners. We’ve already more than doubled our commercial partnerships from seven to 15 in 2025, focusing on scaling our production system to meet the multi-year offtake term sheets worth over $60M we’ve secured with leading fashion brands and manufacturers. Beyond textiles, Rubi has launched new pilots with major partners in the CPG and aerospace industries, with the broader goal of creating an entirely new market category: products derived from carbon waste, produced modularly and affordably, on-shored wherever they’re needed.”
“We started Rubi with the vision that cell-free, multi-enzyme pathways would unlock efficient, scalable, high-performance manufacturing for critical materials from CO2,” said Neeka Mashouf, Co-Founder and CEO of Rubi. “We’ve now demonstrated this technology scales effectively and meets or exceeds customer product standards, driving an inflection point of commercialization. The fresh funding will accelerate our scaling and growth to meet strong global demand for modular and affordable manufacturing of essential materials from waste carbon across textile, CPG, aerospace, and chemicals verticals.”
“Rubi has reached an important transition point, with its technology now demonstrated at pilot scale and clear demand emerging across multiple end markets,” said
Kevin Eggers, Partner at AP Ventures. “The team has made strong progress translating a differentiated scientific platform into early commercial traction. We’re pleased to support Rubi as it moves into industrial demonstration and the next phase of scaling.”
source [
Tech Funding News]
