San Francisco-based startup Rubi has reached a new phase in the commercialization of its carbon-to-materials technology.
On March 17, the company announced it has raised $7.5 million in funding while securing multi-year offtake agreements worth over $60 million with leading fashion brands and manufacturers. At the same time, Rubi is expanding its commercial partnerships and scaling production testing, clearly signaling its transition into the industrial demonstration phase.
Funding and Commercial Momentum
The funding round was co-led by AP Ventures and FH One Investments, with participation from Talis Capital, CMPC Ventures, H&M Group, Understorey Ventures, among others. The capital will be used to scale Rubi’s production system to industrial demonstration, accelerate the commercialization of new products, and enhance enzyme performance while reducing costs.
In 2025, Rubi expanded its partnerships from seven to 15 companies, including Walmart and Reformation. The company also completed fiber performance testing with multiple partners and launched new pilots in the consumer packaged goods (CPG) and aerospace sectors, further broadening its application scope.
Core Technology: Turning CO2 into Materials
At the core of Rubi’s innovation is a fundamental shift—redefining CO2 not as waste, but as a raw material.
The company utilizes a cell-free enzyme platform to transform simple carbon molecules like CO2 into complex materials such as cellulose-based polymers. Unlike traditional fermentation or petrochemical processes, Rubi’s system uses cascades of specialized enzymes to enable more flexible and efficient production.
Additionally, AI- and machine learning-driven enzyme engineering allows for continuous improvements in performance and cost efficiency.
Challenging Existing Industrial Structures
Conventional material production relies heavily on natural resource extraction and energy-intensive processes, accounting for approximately 30% of global CO2 emissions. The textile industry in particular represents the third most carbon-intensive supply chain globally, highlighting the urgent need for transformation.
Against this backdrop, Rubi presents a decentralized, modular manufacturing model. Unlike traditional infrastructure-heavy systems, its production units require up to 10 times less capital expenditure and can be deployed closer to demand, enabling more resilient and localized supply chains.
Neeka Mashouf, Co-Founder and CEO of Rubi, commented on the company’s technology and progress: “We started Rubi with the vision that cell-free, multi-enzyme pathways would unlock efficient, scalable, high-performance manufacturing for critical materials from CO2. We’ve now demonstrated this technology scales effectively and meets or exceeds customer product standards, driving an inflection point of commercialization.”
She also explained the market challenge Rubi addresses: “Rubi’s modular manufacturing system addresses key industry issues today: supply chain resilience, production flexibility, and reduced capital requirements.”
She continued: “Conventional manufacturing processes demand massive fixed infrastructure, creating supply chain fragility. Rubi was built to solve that by transforming CO2 into a valuable resource through a modular system that can be deployed wherever production is needed.”
Toward Industrial Scale
Founded in 2021 by Neeka Mashouf and Dr. Leila Mashouf, Rubi aims to go beyond replacing a single material, instead building a new manufacturing infrastructure defined by resilience and flexibility.
By leveraging CO2 as a feedstock, its distributed production model enables localized manufacturing, reduces reliance on transportation, and strengthens supply chain stability.
Currently transitioning from pilot to industrial demonstration, Rubi plans to produce commercial-scale materials for textile and consumer goods applications.
Kevin Eggers, Partner at AP Ventures, commented: “Rubi has reached an important transition point, with its technology now demonstrated at pilot scale and clear demand emerging across multiple end markets. The team has made strong progress translating a differentiated scientific platform into early commercial traction. We’re pleased to support Rubi as it moves into industrial demonstration and the next phase of scaling.”
Reframing CO2 not as emissions but as a resource—this shift carries implications far beyond materials manufacturing. As Rubi advances toward industrialization, its model has the potential to redefine supply chains and reshape the broader industrial landscape, including fashion.
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