ALT. LEATHER STARTED HERE - LaunchVic

ALT. LEATHER STARTED HERE

Case Studies

A new look for global fashion: Alt. Leather is fielding global demand for sustainability

To put things simply, Melbourne startup Alt. Leather makes leather textiles out of plants. But of course, there’s actually nothing simple about it.

Over the past two years, founder Tina Funder and her team of material scientists led by Dr. Tuan Nguyen has been experimenting and iterating with agricultural biomass and regenerative plant-based material, at a molecular level, creating a product that looks, feels and behaves like leather.

It’s zero petroleum-plastic and ethically produced, using zero water and zero animal products.

It also meets most of the ISO global leather standards for accessories and footwear.

Tina launched this business out of concern for the environment and a desire to make positive change. And with iconic brands approaching Alt. Leather on a regular basis, it’s clear there is global demand here — and it’s only increasing.

Upending the ubiquitous

With her background in advertising, Tina’s journey into materials manufacturing was driven by her values, her penchant for a bit of research, and her sheer inability to let this lie.

A vegetarian and “quasi-vegan” (her own words), she was looking into the environmental and ethical impact of the leather industry.

“I was shocked at how bad it is for the environment,” Tina recalls.

“Leather is so ubiquitous that you don’t think twice about pulling on your shoes or a leather jacket, or getting into your car with leather seats.

“I was really quite confronted by the research and felt compelled to do something.”

First, Tina launched Life on Mars, a handbag label using a leather alternative made from cactus and apple fibres. But she soon realised that this material is predominantly made from plastic.

“These new materials were a step in the right direction, and more sustainable than traditional, animal leather. But I felt like I was replacing one problem with another,” she explains.

She launched a global search for a 100% plastic-free leather alternative, and came up empty-handed. The rest, as they say, is history.

 

Frying pans to global brands

While Tina admits some of Alt. Leather’s early prototypes looked more like scrambled eggs than anything fashion-forward, it wasn’t long before the product started to shape up.

In late 2023, Alt. Leather closed its $1.1 million capital raise, including investment from LaunchVic’s Alice Anderson Fund.

The investment allowed Tina to expand the R&D team and move into a lab at Monash University, and progress has accelerated ever since.

For an R&D-heavy, capital-intensive business, any cash injection is crucial. However, for Tina, LaunchVic has brought much more value than that.

Having met with the Alice Anderson fund team before she even started raising, she felt their support and encouragement throughout.

“Going into a raise knowing you’ve got people in your corner makes a huge difference. The team were almost cheering me from the sidelines,” she says.

“Then, as soon as you become a portfolio company, they just wrap their arms around you.”

Plugging in to the Victorian start-up ecosystem has meant gaining access to endless events, networking opportunities and connections. Tina has found opportunities to have her voice heard in the rooms where it matters, and she’s connected with founders further ahead in their journeys.

She also points to the “incredible institutes” based in Melbourne. Alt. Leather may be based at Monash University, but the team works with RMIT on standards testing, and with CSIRO on production trials.

“The ecosystem is really strong here,” she says.

Equally, however, it’s the lower-profile touchpoints that have been incredibly meaningful.

“You grab a coffee and go for a walk, and just chat about challenges you might be facing and how you can help each other,” Tina says.

“Being surrounded by people who have similar interests — and people who are going to lift you up — is really, really important.”

Driving a leather revolution

Alt. Leather is moving fast, and gearing up to meet huge global demand. Tina and the team have connected with more than 70 brands in both Australia and internationally, she says.

“They are all interested in what we’re doing.”

The startup has been approached by three tier-one, global automotive manufacturers, as well as several major European and US-based brands, all with no advertising whatsoever.

Partly, Tina says, there’s an acknowledgement of consumer demand for sustainable fashion. Partly, brands are all too aware of regulations coming out of Europe and the US.

Either way, she has found herself at the forefront of a leather revolution.

“There’s huge appetite,” Tina says.

“We’re expecting demand to grow exponentially.”

ABOUT THE ALICE ANDERSON FUND

Named after the founder of Australia’s first all-woman motor garage in the 1920s, the Alice Anderson Fund is LaunchVic’s $10 million angel sidecar fund supporting women-led startups.

Our fund co-invests between $50,000 and $300,000 in early-stage deals put forward by investors to increase the funding pool available to Victorian women.

Applications for the fund are accepted on a rolling monthly basis. For more information, visit our website.