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BFD Expert Voices - Climate Deals

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Unspun, a developer of near-zero-waste weaving machines for sustainable clothes production, plans to raise $40 million for 10 U.S. factories.

What's next: Unspun is negotiating with New Mexico officials to open its debut commercial hub as soon as this year. 

Zoom in: The first site will cost $4 million, split between Unspun and manufacturing partners Peckham, Bethel and GSC Link.

The Oakland, Calif.-based startup aims to open another nine U.S. sites in the next four years, at a cost of $4 million each. 

How it works: Unspun's 3D-weaving machines rapidly weave tubular structures from just about any type of yarn.

Unspun sells its machines to clothing companies to handle the clothing manufacturing themselves.

"Our model is not to run factories. It's to provide the machinery," CEO Arne Arens tells Axios Pro. "We're not an apparel producer."

State of play: Unspun's machines will be used first to make chino-style pants, which manufacturers will sell to retailers including Walmart and REI, Arens says.

It expects to sell 10 machines per factory, enabling each to produce up to 300,000 units per year.

Between the lines: That's a fraction of the output from conventional manufacturers in Asia, but at much lower cost, Arens says.

"We're drastically reducing lead-time and waste," he tells Axios Pro. "Because you're reducing the lead time, you're reducing your inventory risk."

That's particularly appealing for companies hoping to capitalize on short-term fashion fads. 

Follow the money: Unspun has raised $60 million since it was founded in 2015, including $32 million in Series B funding in 2024 from investors including DCVC, Lowercarbon Capital, E12, Decathlon and SOSV.

Exclusive: Unspun raising $40M for low-waste weaving machines

It's eying 10 U.S. hubs, the first set to open this year.

Illustration of a dress on a hanger made out of money

Unspun, a developer of near-zero-waste weaving machines for sustainable clothes production, plans to raise $40 million for 10 U.S. factories.What&#x27;s next: Unspun is negotiating with New Mexico officials to open its debut commercial hub as soon as this year.

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Exclusive: Unspun raising $40M for low-waste weaving machines

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