Why We Invested in SwellCycle

When we first met SwellCycle Inc. founders Nathan Jackrazi and Patricio Guerrero , they showed us something that seemed deceptively simple – a better way to make surfboards. But as we dug deeper, we realized we were looking at something much bigger: a reimagining of how and where we make and recycle things. We shouldn’t have been surprised, since the introduction came from their Santa Cruz neighbor, Kyle Doerksen (Future Motion, Onewheel) who has long talked about “sneaking in” climate benefits. 

SwellCycle is building a new industrial manufacturing stack that enables local production using recycled materials. They're starting with surfboards but have already demonstrated applications ranging from marine craft to museum artifacts. What these processes share is they’re like sculpting - they mostly involve translating a design for a surface by removing material, by hand. SwellCycle translates the surface digitally, automating engineering steps as well as design for manufacture, to get faster, better, cheaper results. Also they use recycled plastic.  

Why This Matters

The environmental impact of traditional manufacturing and logistics is significant:

• Long-distance shipping of bulky products contributes substantially to global emissions
• Current composite manufacturing processes are highly wasteful and labor-intensive because material is removed and discarded
• 3D printing has been promising for a while, but getting from a shape or surface through engineering and design for manufacturing, is still aa challenge for many creators
• Most plastic waste still ends up in landfills or oceans rather than being recycled, so more demand should improve recycle rates
• Direct use of recycled materials in production has long been a goal, but the GHG emissions and/or economics doesn’t work because material is handled or transported too much

SwellCycle's approach addresses these challenges through:

• Local, modular, low capex manufacturing that drastically reduces transportation emissions because supply and demand are collocated
• Automated processes that minimize waste and improve efficiency and avoid errors.
• The process is massively simplified for creators like shapers or architects because engineering and design for manufacturing is all handled by SwellCycle

Technology That Enables Change

The team has developed three core innovations:

1. A proprietary large-format 3D printer that costs 1/3 of comparable systems
2. Advanced software to translate shapes and surfaces automatically into high performance 3D printed structures
3. Novel composite manufacturing processes

What's particularly exciting is the versatility of this platform. While surfboards provide an ideal entry point, the technology can be applied to furniture, marine craft, art installations, and countless other products that traditionally rely on wasteful manufacturing methods.

Why Now?

Several factors make this the right time for SwellCycle's approach:

• Advances in 3D printing core components like motors continue to fall in price and improve in overall performance
• Growing demand for sustainable, locally-manufactured products
• Increasing rates of recycling also as a result of automation
• Rising transportation costs driving interest in distributed manufacturing
• Increasing focus on reshoring manufacturing to the US

The timing is particularly relevant given the broader conversation around rebuilding American manufacturing capabilities. SwellCycle's distributed manufacturing model could help establish a network of local recycling and production facilities across the country.

The Team

We invested in SwellCycle because of their unique combination of technical expertise and industry understanding. The founders bring deep experience from Disney Imagineering, Zipline International, and other leading engineering organizations. Their track record of successful collaboration and ability to execute complex technical projects gave us confidence in their ability to tackle this ambitious vision.

Looking Ahead

The immediate focus is on scaling their surfboard manufacturing capabilities and developing their automated composite processing technology. But the longer-term vision is much bigger - establishing a new paradigm for local, sustainable manufacturing.

SwellCycle represents the kind of transformative approach we look for at Third Sphere - technology that can drive both business success and meaningful environmental impact. We're excited to partner with them on this journey to reimagine how things are made.