GET A PIECE OF STARCHTEK
Replacing plastics with biomaterials
$122,492.25 Raised
Reasons to Invest
- MINIMIZE STYROFOAM CONSUMPTION: We have safe, eco-friendly, and cheap alternatives to Styrofoam. AND, more solutions are coming.
- BIG OPPORTUNITY: The protective packaging market is growing at a 6%+ annual rate - growing from $33 billion to $40 billion in just the next few years. (source)
- THE PERFECT TRIFECTA STORM: i) Governments are banning Styrofoam, ii) the consumer is demanding green packaging solutions, and iii) our environment is pleading for us to stop polluting– a Perfect Storm, for StarchaFoam™
Overview
Na na na na, hey hey, Goodbye Styrofoam, hello StarchaFoam™
At StarchTek, we are replacing plastics with biomaterials, working to replace styrofoam packaging with our sustainable, patented StarchaFoam™.
We teamed up with Michigan State University to leverage their work to date, merge our technologies, and create a green Foam alternative that’s biodegradable and can even dissolve in your kitchen sink. We are on a mission to abolish Styrofoam pollution by making our eco-friendly affordable StarchaFoam™ and by working on future solutions to replace more plastic.
All StarchTek products are currently in development and not yet available on the market.
THE Problem
The global Styrofoam battle
There’s a lot of plastic out there, we all know that. In fact, an estimated eight million tons of plastic, basically over 26,000 747 planes, are swept into our seas and oceans annually (source).
Expanded PolyStyrene (AKA: Styrofoam) is a wildlife killer, as it creates an overwhelming amount of seafoam.
That’s because it’s petroleum-based non-biodegradable, which the EPA and International Agency for Research on Cancer consider PolyStyrene a “possible human carcinogen” and “that such materials can have serious impacts upon human health, wildlife, and aquatic environment, and the economy,” (source).
the solution
StarchaFoam™ protects packages while protecting our environment…
Shipping sustainable foam, safely to your home!!!
We are on a mission to abolish Styrofoam usage for food, medication, furniture, appliances, and electronic packaging.
By offering legacy packaging manufactures, a turn-key solution to replace EPS (aka: Styrofoam), with our eco-friendly StarchaFoam™ - we are bringing to market a 100% starch-based compostable foam with outstanding sustainability properties unavailable in Styrofoam yet protects and keeps cool, like Styrofoam.
*The above is a prototype of a future product. Product is still currently under development not yet available on the market
This modified starch-based manufacturing licensed solution uses our sustainable…
- Patented formulations
- Extrusion process
- Proprietary equipment
Our technology offers the following benefits, all sustainable and biodegradable:
- Excellent Functionality: Insulation, cushioning, and surface protection
- Contribution to minimizing the global plastic pollution problem
- Striving to make our planet a cleaner and safer place
- Eliminates filling up the black trash box with bulky Styrofoam
- Increasing customer satisfaction knowing they are using green packaging and that is less annoying than Styrofoam particles (all over the house)
- A great alternative to support global governmental Styrofoam bans
*The above is a prototype of a future product. Product is still currently under development not yet available on the market
Not to mention, it even can dissolve in water
We are developers of new green packaging solutions that we license our formulation & process and sell the raw-materials to packaging manufacturers. We have a subscription business model similar to major printer businesses - ones that practically give away the printers, but make money from selling ink.
StarchTek works similarly, as we charge a minimal licensing fee, but we mark up (50% to 100%) the raw material our customers perpetually need, and are required to order through us, per the licensing agreement.
The company plans on taking advantage of the great demand that is building for bioplastic packaging. StarchaFoam™ competes directly with EPS/Styrofoam and breaks new cost/performance/sustainability barriers with price per ton starting at $1,353, versus EPS/Styrofoam, at $2,100 per ton.
The increasing oil prices will further positively impact the demand for StarchaFoam™ over EPS/Styrofoam.
Please note the below economics chart is subject to change once the StarchTek product is on the market and may vary depending on costs.
The market
The market shows us that people want green alternatives
The protective packaging market is growing at a 6%+ annual rate, growing from $33 billion to $40 billion in just the next few years (source).
*TAM (Total Addressable Market), SAM (Serviceable Addressable Market), SOM (Serviceable Obtainable Market)
Not to mention…
- Over 59% of pharmaceutical R&D investments are into drugs that will require temperature control packaging (source).
- U.S. e-commerce jumped 49% in April, FY 2020, compared to the baseline period in early March before shelter-in-place restrictions came into effect. Online grocery helped drive the increase in revenues, with a 110% boost in daily sales between March and April. Meanwhile, electronic sales were up 58%, and book sales have doubled (source).
- The demand for protective packaging in the e-commerce industry is set to witness unprecedented growth as a result of the rapid strides in consumer electronics sales in e-retailing. This market segment was non-existent a decade ago; however, the pace of growth in e-commerce has picked up and has given rise to this fledgling segment in the e-commerce protective packaging market (source).
Other major protective packaging companies have caught the market’s and investors' attention recently (source). But how StarchaFoam™ stands out is that we provide almost the same protection, but 66% thinner, less expensive to make, and requires 5x less capital to install.
*The above is a prototype of a future product. Product is still currently under development not yet available on the market
our traction
A realistic IP roadmap with solutions vetted by engineers and scientists
At our core is our partnership with Michigan State University and our exclusive rights to their ten chemically modified starch patents.
Additionally, StarchTek has achieved the following milestones:
- Developed multiple formulas for StarchaFoam™ with different types of starch, since the prices of starch range from $.19 to $.81 per pound.
- Designed multiple solutions with cost-efficient formulas
- Developed a proprietary extrusion process
- Designed and manufactured proprietary extrusion dies
- Developed extensive interest and strategy validation from raw material processors, large paper companies, and packaging manufacturers (even the Styrofoam makers)
- Attained nonbinding commitments from prospective hires; engineers & scientists.
why invest
We aim to be a market leader in starch-based foam solutions
We are here to protect packages and our planet by insulating and cushioning well, at an affordable cost.
Why is this the right time and place? It’s the perfect storm…
1) Governments are banning plastics
2) The environment has been suffering
3) Consumers are fed up with plastic pollution and are demanding a green solution
Be part of the plastic pollution solution and Invest in StarchTek….invest in a brighter, environmentally conscious future.
ABOUT
HEADQUARTERS
3911 Concord Pike #8030, SMB 12973
WILMINGTON, DE 19803
WEBSITE
View Site
StarchTek offers a turn-key starch-based manufacturing licensing solution as an alternative to dreaded Styrofoam. Using our sustainable patented formulations, extrusion process and proprietary equipment. StarchTek is in the prototyping stages with 8 patents - aiming to launch products in 2023.
TEAM
John Danny Dubuk
President/CEO/CFO/Innovation-Officer
By age 25, Mr. Dubuk received a Bachelor of Science & MBA and began his finance career in the life insurance industry during the junk bond climb and eventual demise. Ever the solution provider, Mr. Dubuk shortly thereafter started his own boutique investment banking firm (Accord Financial Services “AFS”) that grew to $50MM AUM, mainly from high net worth entrepreneurs looking for i) High Yield Life Insurance Strategies, ii) Direct Lending Opportunities: Subprime-RE/Subprime-Auto/Factoring/Lease-Paper, iii) Government Redevelopment Capital and iv) Strategic Business Development & Funding
By 2004, 16 years later, Mr. Dubuk moved into operations of the then thriving market; Subprime-Auto. Mr. Dubuk Co-founded Integrity Capital Management “ICM”) which focused on the Houston used automobile market. The ICM team led by Mr. Dubuk placed, managed, and grew the portfolio to $30MM from private investors and Wall Street capital. As the “2009 global nuclear financial winter” arrived, Wall street went into hibernation and the equity partners elected to run off the portfolio for self-preservation reasons.
Having a good understanding of the immigrant underserved market, Mr. Dubuk then engaged with Fundamo LTD to bring mobile payment services to the unbanked US market. Specifically, the large money transmitting corridor between Hawaii and the Philippines by partnering with a prepaid phone carrier in Hawaii and G-Cash in the Philippines, to overpay the phone bill and remit the difference back home. VISA acquired Fundamo in 2011.
Thereafter, Mr. Dubuk applied his skills and experience in working with startups in the Sustainable Foods and Cold Chain Packaging Markets holding the position of CFO, SVP-Strategy & Finance and at times, the de-facto CEO and raising over $35MM in equity capital at valuations as high as $40MM. Hence, Mr. Dubuk brings the experience and knowledge to understand and leverage the key drivers the market and the investment world is looking for in all functional areas of a business: Finance, Accounting, Human Resources, Legal, Marketing, Sales, Public Relations, Business Development, Supply Chain, Manufacturing, Engineering, R&D, Investor Relations.
Mr. Dubuk offers a unique skill set with his mathematical and creative talents together with his manufacturing, investment, operations and multiple asset class experience and global strategic networks, for companies that are looking to grow.
Kerry Colton
Chemical engineering - Consultant
Mr. Coltun currently serves as the Director of Process and Automation for a major engineering and technology firm located in northern California. He graduated with a BS degree in Chemical Engineering from Purdue University, and a MS degree in Engineering from University of Wisconsin-Madison. He is currently a licensed Professional Engineer in the State of California and is a Certified Automation Professional through the International Society of Automation.
Dr. Graham M. Chapman
Organic Chemist - Consultant
Dr. Graham currently serves as a Consulting in the field of specialty plastics, particularly biodegradable and water-soluble plastics, waste management and novel materials. Client companies in the UK, USA, Canada, Germany, Middle East, Denmark the Director of Process and Automation for a major engineering and technology firm located in northern California. He graduated with a MA from Cambridge University in Organic Chemistry/Natural/Sciences/Chemistry/Mathematics/Biochemistry and Physics. He also hold a Ph.D. degree from Imperial College in London in Organic Chemistry. He is a Member of ASTM D20.96 Committee for Degradable Plastics
TERMS
StarchTek
Overview
PRICE PER SHARE
$10
DEADLINE
Sep 2, 2022
VALUATION
$10.62M
FUNDING GOAL
$10k - $1.07M
Breakdown
MIN INVESTMENT
$500
MAX INVESTMENT
$1,070,000
MIN NUMBER OF SHARES OFFERED
1,000
MAX NUMBER OF SHARES OFFERED
107,000
OFFERING TYPE
Equity
ASSET TYPE
Common Stock
SHARES OFFERED
Common Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Investment Incentives and Bonuses*
Time-Based:
Friends and Family Early Birds
Invest within the first 5 days and receive 15% bonus shares
Super Early Bird Bonus
Invest within the following 72 hours and receive 10% bonus shares
Early Bird Bonus
Invest within the following 5 days and receive 5% bonus shares
Amount-Based
Bronze Investor | $5,000+
Invest $5,000 and receive 5% bonus shares.
Silver Investor | $15,000+
Invest $15,000 and receive 10% bonus shares.
Gold Investor | $30,000+
Invest $30,000 and receive 20% bonus shares.
Diamond Investor | $60,000+
Invest $60,000 and receive 25% bonus shares.
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
StarchTek Corp. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Common Stock at $10.00 / share, you will receive 110 shares Common Stock, meaning you'll own 110 shares for $1,000. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors' eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any).
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Vendor payments. Any expense labeled “Travel and Entertainment”. Inter company debt or back payments.
ALL UPDATES
Stack Owner's Bonus & Rewards!
Members get an extra 10% shares in addition to rewards below!
REWARDS
JOIN THE DISCUSSION
0/2500
Russell Smith
a year ago
I have already invested in you and i like the product and your lean approach - that said and without trying to flog the horse again, if the amount raised sits at around $100k (as it does currently), how much of those funds will be used to pay back loans you have made - or will it all be used to move the company forward. Many thanks and love the goals....
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Jarod Rudisill
a year ago
What sets you apart from Ranpack other than the fact that you use starch instead of paper?
1
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Chad Raynak
a year ago
My concern and most people's concern should be your Irregular Use of Proceeds
Salary payments made to one’s self, a friend or relative
Vendor payments
Any expense labeled “Travel and Entertainment”
Inter company debt or back payments
Only 1 company that I've invested in went silent soon after funded. It also had irregular expense of travel and entertainment.
But you also have salaries to self, friends, or relatives.
I really like the direction you are trying to go, but these uses of proceeds are huge red flags. Can you explain these?
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Christopher Zusin
a year ago
A quick Google search appears to show that multiple universities have done plenty of work in the starch-based bio-plastics field, with a lot of activity in the past 4 years or so.
1. What makes you unique?
2. What will sustain your competitive advantage when other academic/private partnerships start churning out parents of their own and competing with you?
3. How do you assess the liability risk of wet packaging resulting in damaged freight? I'm sure everyone has encountered boxes that have been rained on in shipment/handling resulting in wet/dry cycled packaging.
4. Is acquisition your preferred exit strategy?
5. As identified in your form C, one of your competitors has already folded. What makes you believe you can do better?
6. Have you secured parents in multiple jurisdictions, or just the US?
7. Is flammability a liability risk, noting - for example - that starch powders can be explosive?
8. What strengths of packing materials/structures can you support? Clearly small consumer packing, but what about consumer freight such as furniture packaging and appliances?
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HOW INVESTING WORKS
Cancel anytime before 48 hours before a rolling close or the offering end date.
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Rahul Patel
a year ago
1
0