KITCHENER – Trusscore, a material science company that makes sustainable alternatives for traditional building products, is set to expand operations after attracting significant new investment dollars.
The company, which has a manufacturing facility in Palmerston, recently announced it has raised $26 million in Series A funding.
The investment was led by Round13 Capital from its newly created Earth Tech Fund that will back companies with complementary environmental and commercial mandates.
Series A financing refers to investment in a privately-held, start-up company after it has shown progress in building its business model and demonstrates the potential to grow and generate revenue.
In a press release the company stated the new investment will enable Trusscore to “accelerate its growth by building out its research and development and sales and marketing capabilities and drive additional manufacturing capacity to meet growing product demand.”
In an email to the Community News Trusscore CEO Dave Caputo stated some of the funds will be used to invest in “additional team members and manufacturing capacity” at the Palmerston facilities.
The company currently has 70 employees at the Palmerston facility and around 200 in total.
He also said future growth “will predominately be driven by our current product lines.”
Trusscore leverages advanced nanotechnology and material science to create “new, better-performing building products,” the release states, including its innovative Trusscore wall and ceiling board, a high-strength polymer alternative for drywall that aims to divert some of the millions of tons of drywall that end up in landfill each year.
During the past 18 months Trusscore has extended its success in the agricultural and commercial sectors to the residential market, where its products have been used as an alternative to drywall in spaces like basements and garages.
The company states the product is ideal for household areas that require “a smooth and durable finish that is easy to maintain and can withstand damp or wet conditions.” The company says the product can be installed four times faster than drywall and is designed to last longer than the structures within which it is installed.
“At Trusscore, we believe the only future is a sustainable future. We are determined to help change the environmental impact of the construction industry with sustainable products that help build a better future for generations to come,” said Caputo.
“This investment in Trusscore will serve as fuel for our growth. Our focus on innovation and material science is driving real demand for our sustainable alternatives to traditional building materials.”
Trusscore has been named one of Canada’s fastest-growing companies for eight consecutive years by Canadian Business.
The company raised $5.33 million in an over-subscribed seed financing round in May 2020. Four months later the company announced a partnership with HGTV home renovation experts Bryan and Sarah Baeumler.
In July, Trusscore expanded its manufacturing and distribution capability by acquiring Calgary-based Westech Building Products.
The raise is also an important milestone for Round13 as Trusscore is the first investment for its Earth Tech Fund.
“Our new Earth Tech Fund is our first environmental, social, and corporate governance (ESG) fund. We created it specifically to accelerate the growth of companies that have made a commitment to the environment and have sustainability as a strategic business imperative,” Round13 Capital general partner Craig Strong stated.
“As a company that is disrupting the status quo in a legacy industry that causes millions of tons of waste annually, Trusscore is the perfect first investment to launch this fund. With Dave at the helm, and his vision for both the company and the overall construction industry, Trusscore is very well positioned for success.”
Trusscore’s marketing and research and development teams are based at the Communitech Hub in Kitchener with Canadian manufacturing plants in Calgary and Palmerston and a U.S. facility in Dayton, Ohio.