This Company Is Making a Case To Invest in Bamboo

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Rizome, a Bradenton, Florida-based startup, wants to save some of the 15 billion trees being cut down annually, much of them for use in the construction industry, and focus instead on using bamboo, a regenerative grass that acts as a carbon sink and can be harvested for up to 100 years. It’s a move that could save significant numbers of trees that are vital to preserving human life.

That’s the environmental case. But there are also major supply-chain issues with bamboo that Rizome thinks it can solve.

There’s Apparent Demand, But Is There Supply?

Rizome states on its crowdfunding page that bamboo is in high demand in the construction industry. Bamboo is a grass typically grown in subtropical climates, mainly in South America and Asia. While big timber players such as Weyerhaueser Co. WY and Boise Cascade Co. BCC provide lots of information about sustainable practices on their websites, there’s little information about using bamboo.

“The building industry recognizes that bamboo is a sustainable alternative to wood, but until now, there hasn’t been a reliable supply of timber-grade bamboo lumber to meet demand,” according to Rizome.

The company is making the grass more consistently available to the construction world by partnering with landowners, building a manufacturing plant in the Philippines, and exporting bamboo products to the North American consumer market.

The company is also partnering with farmers in Florida to grow bamboo on their land, with the goal of harvesting the resulting poles by 2026. The arrangement may help offset any losses the farmers may incur from their citrus operations.

Societal Pressures Could Aid Business Model

Whether Rizome is able to persuade the giants of the construction industry to pour resources into bamboo remains to be seen. After all, while the demand for green building materials is increasing, demand for wood products is also expected to grow significantly to a total of $400 billion by 2027.

“Building regulations, governmental policies, and growing public awareness are driving demand for green building materials,” the company says.

The environmental case, the ability to ensure a consistent supply chain, and growing societal pressures for greener materials are all factors that Rizome believes will help it and bamboo to become a force over the next several years.

“Its strength and durability matched with its naturally regenerative properties make it the better building material,” Rizome says of bamboo. “With investors and partners, we hope to make bamboo a primary construction material within the next 10 years.”

To learn more, check out startengine.com/rizome.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

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