In the Sourcing Journal’s 2025 Material Innovation Report, Sabriya Stukes, partner at SOSV and chief scientific officer at IndieBio, weighs in on the growing urgency and opportunity around sustainable materials. She discusses the environmental toll of fashion, the return of VC interest in biomaterials, and why SOSV backs both new materials and the tools that help scale them. Check out the full spread below.
Biomaterials startups pulled in $392 million during the first quarter of 2025 alone, per Net Zero Insights—a sign that investors are coming back. After peaking at $1.7 billion in 2022, the sector cooled in 2023, per World Bio Market Insights, and then saw just $583 million in new funding through 2024.
If quarterly investment holds steady for the rest of the year, 2025 could close with roughly $1.5 billion poured into biomaterials—rivaling its previous high.
The reason? Fashion’s footprint isn’t shrinking fast enough, and established fabrics are part of the problem. Textile Exchange’s 2023 Material Market Report placed more than half of global fiber production as fossil-fuel-based. The climate crisis has created an urgent need—and a clear market opening—for scalable, low-impact alternatives.
“The way clothes are manufactured touches nearly every part of the industrial supply chain, and the environmental impact is massive. Many consumers are still unaware of the true environmental cost of not just creating, but then disposing of even one T-shirt,” said Sabriya Stukes, a partner at SOSV and chief scientific officer of its IndieBio life sciences program. “Now, with the rise of fast fashion and new regulations (potentially) on the horizon—as we see it, the future of fashion isn’t just about style, it’s a critical frontier for climate action.”
As a global venture capital firm giving deeptech founders multi-stage investments, SOSV operates its various programs in New York City and San Francisco (aka the IndieBio accelerator) and in Newark (aka HAX). The endeavor’s ecosystem spans the globe, with 800-plus startups operating across 40 countries.
“At SOSV, we believe biology, chemistry and engineering can create a better process— whether that’s creating new materials, rethinking production infrastructure, finding novel ways to reuse waste,” Stukes said. “But, we also know that new materials alone won’t solve the problem. That’s why we back the startups developing the machines and tools needed to bring these innovations into the real world—and our daily lives—as well.”
From Abercrombie to Zara, brands need alternatives that scale. As venture capitalists continue funding efforts to turn green experiments into mainstream fabrics, tomorrow’s wardrobe could be grown in a lab rather than pumped out of a petrochemical plant.
One executive believes material innovation in fashion is “stronger than ever,” especially as the environmental impact of the industry becomes more urgent and visible.
“From the start, we’ve focused on supporting disruptive ideas that can fundamentally change the industry,” Vanessa Cheung, founder of The Mills Fabrica, said. “That commitment hasn’t wavered. We truly believe that, disruptive, science-driven, scalable solutions are the only way to create real impact for the industry, consumers and the planet.”
The Hong Kong-based innovation accelerator has seen “real momentum” toward dyeing, developing next-generation materials, new ways of manufacturing and a serious push for circularity, Cheung continued. She noted that Fabrica has focused on upstream innovations in recognition that approximately 70 percent of the industry’s environmental impact originates from the upstream side of the supply chain.
“By focusing our efforts here, we aim to address the root causes of environmental harm and drive meaningful change at scale. That’s why we continue to invest our energy and resources into supporting innovations in the materials space,” Cheung said. “The journey is ongoing, but our belief in the power of material innovation to drive sustainable change has only grown stronger over time.”
Scaling disruptive technologies in Asia’s manufacturing hubs requires a “fundamental reorganization” of existing supply chains, which inevitably brings both technical and economic barriers.
“Technically, new ways of dyeing often demand new machinery, while recycled fibers require extensive testing to ensure they meet structural and quality standards,” Cheung said. “Bridging this technological gap is not easy— it requires capital, close collaboration, and time—especially from startups trying to break into established networks.
Economic challenges will naturally follow.
“New materials and technologies usually come with a higher price tag, which can slow adoption in a highly cost-sensitive industry,” Cheung said. “This is where regulation has a vital role to play: by properly pricing in the environmental externalities of traditional processes, regulation can help level the playing field and encourage investment in innovation.”
Cultural acceptance is also a key factor.
“Increased awareness of sustainability is critical to shifting consumer preferences, encouraging more people to pay a small premium for innovative products,” Cheung said. This, in turn, signals to manufacturers and brands that there’s market demand for sustainable solutions, motivating them to invest further in developing and scaling new technologies. In this sense, she added, demand and supply are two sides of the same coin.
“Ultimately, these barriers must be addressed from all three angles, Cheung said. “Success will require open mindedness toward upfront investment, strong partnerships across the value chain, supportive regulation and continued efforts to drive consumer awareness.”
Navigating the supply chain “valley of death” is often one of the toughest hurdles for startups—especially those aiming to disrupt the textile and apparel industry, Cheung said. She’s seen many founders reach this daunting stage—providing support through that process is a big reason why the solutions platform accelerating tech-enabled ESG innovations exists.
“Collaboration over competition is what’s going to help us all win,” Stukes said, advocating for holistic approaches, like investing in both infrastructure and new materials, to address concerns from different perspectives. “For every next-gen materials company we back—like Gozen, Tom Tex and Keel Labs—we want to support the future of manufacturing with investments—like Smartex, Unspun and Silana.”
To evaluate scalability for novel materials, investors usually consider performance, production and price parity. SOSV’s limited partners—ranging from corporates to sovereign wealth funds to mission-driven family offices—are united by the mutual desire to back high-impact innovation with real commercial potential. “They turn to us to identify and invest in companies that can ultimately generate both strong financial returns and measurable climate outcomes,” she said.
GREEN SHOOTS
Approximately 65% of SOSV’s fund is allocated to companies advancing climate and industrial independence solutions. A few notable portfolio companies in the SOSV ecosystem:
- GOZEN BIOWORKS
Istanbul-based developer of Lunaform, an animal-free leather alternative featured in Balenciaga’s Summer 2024 collection. - KEEL LABS
Based in NC, creators of Kelsun, an ocean-based fiber used by Stella McCartney and Outerknown. - BIOFLUFF
Paris-based maker of 100% plant-based fur, recently partnered with Ganni. - MYCOWORKS
SF-based maker of Reishi material. - BLOOM LABS
NYC startup making oil-free, melt-spun polyester replacements. - NOVOLOOP
Menlo Park-based “lifecycling” company turning plastic waste into virgin-quality resin. - TÔMTEX
NYC platform using food waste to create leather alternatives. Partnered with Peter Do and Collina Strada.
