Xylophane, a Swedish developer of renewable packaging that can extend the shelf life of certain food products, has raised €3.3 million (£3 million) from a placing of shares.

Xylophane, a Swedish developer of renewable packaging that can extend the shelf life of certain food products, has raised €3.3 million (£3 million) from a placing of shares.

SEB Venture Capital, the venture capital arm of Skandinaviska Enskilda Banken, and the Capricorn Cleantech Fund, Capricorn Venture Partners’ third venture capital fund, have joined existing investors KTH Chalmers Capital, Innovationsbron and Hans and Ingrid Wallstén.

The funds will be used to operate the company and its pilot factory for the next three years. The pilot facility is expected to be fully operational by October 2009, producing the packaging for pilot projects for potential customers as well as ratcheting up the company’s manufacturing process for future full-scale production.

Paul Decraemer, head of the cleantech investment practice at Capricorn Venture Parners, said: “We have followed the company for many years. Our thorough analysis showed that the company has an exciting, highly sought-after product that offers a fascinating new alternative to an industry looking to replace old barrier solutions with modern, environmentally compatible products.”

Founded in 2004, Xylophane was spun out from the Chalmers University of Technology in Gothenburg. Its renewable and biodegradable packaging is based on natural raw materials.