It’s a challenge every startup faces: they’ve made a prototype and proven the thing works, but now have to sell the product and produce enough to get past the “valley of death” that kills so many companies.
“They are chicken and egg stuck,” Josh Felser, co-founder and managing partner of early-stage venture firm Climactic, told TechCrunch.
The hurdle is particularly high for companies making physical goods. Felser noticed it was a common occurrence among startups producing novel materials. Fesler, who previously founded and invested in software startups, said the problem they faced seemed a bit unfair.
“Software companies sell at a negative margin all the time in the beginning, you know, Uber, Lyft, you can look at lots of different examples,” he said. “But for materials companies, they they’re not allowed to do that. One of the questions I had is, ‘why is that?’”
Felser found that unlike software companies, which can quickly add more capacity from cloud service providers, materials startups face a market skeptical of their ability to scale up production without a guaranteed customer.
Felser decided to give them one.
Felser doesn’t run a company with a big budget for clever materials, but he knows a few. And as a climate tech investor, he knows more than a few startups that could benefit from a well-known customer.
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Felser has been quietly working on a new project, called Material Scale, that brings the two sides together using a hybrid debt-equity investment vehicle to give materials startups a boost, TechCrunch has learned. Material Scale will initially focus on climate tech startups in the apparel industry.
Material Scale is betting on startups with commercial-ready products that are ready to scale if a customer can purchase in bulk. Buyers will commit enough funds to cover the cost of the material at market price. Material Scale will fund the difference through a combination of loans and warrants in the startup.
“It’s really minimally dilutive,” Felser said.
Ralph Lauren is joining the platform as a buyer for the initial launch of Material Scale. Investor Structure Climate is joining Climactic as a general partner.
Money from purchase orders flows from the buyer through Material Scale to the startup. “In effect, we buy it and then simultaneously sell it,” Felser said.
The deals between Material Scale and the buyer and between Material Scale and the startup will be inked essentially at the same time.
“Once they sign the deals, this’ll be interesting because the value of the company has significantly changed because they’ve now got a buyer and they’ve got funding to achieve scale,” he said.
Material Scale hasn’t executed any deals yet; Felser said he has large apparel manufacturers interested in participating and a long roster of startups that could use the funding. “The startups all want it,” he said. “We have a big list of companies that are candidates that we’re talking with.”
The first investments will come out of a special purpose vehicle totaling about $11 million. Felser hopes to eventually branch out into other, similar markets like alternative fuels, eventually growing the Material Scale concept to nine figures.
He hopes other investors will steal his idea.
“We need more novel instruments like this to attack climate change,” he said. “We want to be nimble and be able to take advantage of opportunities when we we see them and not just be doing the same old thing.”
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![‘Ninja Scroll’ Is Slashing Back to Theaters in October
The 1993 samurai anime film Ninja Scroll is coming back with a limited theatrical run this fall. Per IGN, Iconic Events and AMC are teaming for a re-release on October 4, 5, and 7. (At time of writing, it’s exclusively locked to North America.) The remastered version will play its original 35mm negatives in 4K using a process that “repairs any damage and [performs] color correction to create an archival-quality digital master of the film.” Directed and written by Yoshiaki Kawajiri and created by Animate Film, Ninja Scroll tells the story of mercenary swordsman Kibagamei Jubei. Set in feudal Japan, Jubei is tasked with killing the Eight Devils of Kimon, supernatural ninjas aiming to take over the Tokugawa shogunate. Praised for its animation and action, the film was highly regarded when it came out and is considered a great contributor (alongside Akira and Ghost in the Shell) to adult anime’s popularity in the West. (That’s at least true for the Wachowskis, who cited the film as a big influence on The Matrix, and later brought on Kawajiri to direct and write two segments of The Animatrix.) [embed]https://www.youtube.com/watch?v=jrfUIekIpEA[/embed] In the years since Ninja Scroll’s release, it’s become a bit of a franchise unto itself: it had a standalone sequel series in 2003 and a 12-issue miniseries in 2006 by J. Torres and Michael Chang Ting Yu.
Animation studio Madhouse announced a sequel in 2008 helmed by Kawajiri that stalled out, and that same year saw Warner Bros. announce a live-action movie that also didn’t go anywhere. (Oh, noooooo, that’s sooooooo sad.) Tickets for the Ninja Scroll re-release will go on sale in the coming weeks. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Ninja #Scroll #Slashing #Theaters #OctoberNinja Scroll,Yoshiaki Kawajiri](https://i0.wp.com/gizmodo.com/app/uploads/2026/06/ninja-scroll-hed-1280x853.jpg?ssl=1 "‘Ninja Scroll’ Is Slashing Back to Theaters in October
The 1993 samurai anime film Ninja Scroll is coming back with a limited theatrical run this fall. Per IGN, Iconic Events and AMC are teaming for a re-release on October 4, 5, and 7. (At time of writing, it’s exclusively locked to North America.) The remastered version will play its original 35mm negatives in 4K using a process that “repairs any damage and [performs] color correction to create an archival-quality digital master of the film.” Directed and written by Yoshiaki Kawajiri and created by Animate Film, Ninja Scroll tells the story of mercenary swordsman Kibagamei Jubei. Set in feudal Japan, Jubei is tasked with killing the Eight Devils of Kimon, supernatural ninjas aiming to take over the Tokugawa shogunate. Praised for its animation and action, the film was highly regarded when it came out and is considered a great contributor (alongside Akira and Ghost in the Shell) to adult anime’s popularity in the West. (That’s at least true for the Wachowskis, who cited the film as a big influence on The Matrix, and later brought on Kawajiri to direct and write two segments of The Animatrix.) [embed]https://www.youtube.com/watch?v=jrfUIekIpEA[/embed] In the years since Ninja Scroll’s release, it’s become a bit of a franchise unto itself: it had a standalone sequel series in 2003 and a 12-issue miniseries in 2006 by J. Torres and Michael Chang Ting Yu.
Animation studio Madhouse announced a sequel in 2008 helmed by Kawajiri that stalled out, and that same year saw Warner Bros. announce a live-action movie that also didn’t go anywhere. (Oh, noooooo, that’s sooooooo sad.) Tickets for the Ninja Scroll re-release will go on sale in the coming weeks. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Ninja #Scroll #Slashing #Theaters #OctoberNinja Scroll,Yoshiaki Kawajiri")
![‘Ninja Scroll’ Is Slashing Back to Theaters in October
The 1993 samurai anime film Ninja Scroll is coming back with a limited theatrical run this fall. Per IGN, Iconic Events and AMC are teaming for a re-release on October 4, 5, and 7. (At time of writing, it’s exclusively locked to North America.) The remastered version will play its original 35mm negatives in 4K using a process that “repairs any damage and [performs] color correction to create an archival-quality digital master of the film.” Directed and written by Yoshiaki Kawajiri and created by Animate Film, Ninja Scroll tells the story of mercenary swordsman Kibagamei Jubei. Set in feudal Japan, Jubei is tasked with killing the Eight Devils of Kimon, supernatural ninjas aiming to take over the Tokugawa shogunate. Praised for its animation and action, the film was highly regarded when it came out and is considered a great contributor (alongside Akira and Ghost in the Shell) to adult anime’s popularity in the West. (That’s at least true for the Wachowskis, who cited the film as a big influence on The Matrix, and later brought on Kawajiri to direct and write two segments of The Animatrix.) [embed]https://www.youtube.com/watch?v=jrfUIekIpEA[/embed] In the years since Ninja Scroll’s release, it’s become a bit of a franchise unto itself: it had a standalone sequel series in 2003 and a 12-issue miniseries in 2006 by J. Torres and Michael Chang Ting Yu.
Animation studio Madhouse announced a sequel in 2008 helmed by Kawajiri that stalled out, and that same year saw Warner Bros. announce a live-action movie that also didn’t go anywhere. (Oh, noooooo, that’s sooooooo sad.) Tickets for the Ninja Scroll re-release will go on sale in the coming weeks. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Ninja #Scroll #Slashing #Theaters #OctoberNinja Scroll,Yoshiaki Kawajiri](https://gizmodo.com/app/uploads/2026/06/ninja-scroll-hed-1280x853.jpg "‘Ninja Scroll’ Is Slashing Back to Theaters in October
The 1993 samurai anime film Ninja Scroll is coming back with a limited theatrical run this fall. Per IGN, Iconic Events and AMC are teaming for a re-release on October 4, 5, and 7. (At time of writing, it’s exclusively locked to North America.) The remastered version will play its original 35mm negatives in 4K using a process that “repairs any damage and [performs] color correction to create an archival-quality digital master of the film.” Directed and written by Yoshiaki Kawajiri and created by Animate Film, Ninja Scroll tells the story of mercenary swordsman Kibagamei Jubei. Set in feudal Japan, Jubei is tasked with killing the Eight Devils of Kimon, supernatural ninjas aiming to take over the Tokugawa shogunate. Praised for its animation and action, the film was highly regarded when it came out and is considered a great contributor (alongside Akira and Ghost in the Shell) to adult anime’s popularity in the West. (That’s at least true for the Wachowskis, who cited the film as a big influence on The Matrix, and later brought on Kawajiri to direct and write two segments of The Animatrix.) [embed]https://www.youtube.com/watch?v=jrfUIekIpEA[/embed] In the years since Ninja Scroll’s release, it’s become a bit of a franchise unto itself: it had a standalone sequel series in 2003 and a 12-issue miniseries in 2006 by J. Torres and Michael Chang Ting Yu.
Animation studio Madhouse announced a sequel in 2008 helmed by Kawajiri that stalled out, and that same year saw Warner Bros. announce a live-action movie that also didn’t go anywhere. (Oh, noooooo, that’s sooooooo sad.) Tickets for the Ninja Scroll re-release will go on sale in the coming weeks. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Ninja #Scroll #Slashing #Theaters #OctoberNinja Scroll,Yoshiaki Kawajiri")
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