LANSING, Mich. – 3R Pallets, an  Okemos, Mich.-based sustainable pallet company which has received long-term support from the Lansing Regional SmartZone (LRSZ), recently graduated from Techstars, the leading internationally-recognized startup accelerator. Founded by Kylee Guenther and Raju Patil, 3R was accepted into Techstars’ Future of Food cohort, aimed at tackling challenges at the intersection of food and technology. The co-founders graduated from the intensive three-month program, conducted in Minneapolis and are now preparing to launch a major investor round to support their market entry.

“3R Pallets’ acceptance into Techstars is a major milestone for the Lansing region’s entrepreneurial ecosystem,” said Bob Trezise,  president and CEO of the Lansing Economic Area Partnership (LEAP) (left). “LEAP oversees the LRSZ and we are committed to fostering high-tech and innovation-driven startups that can scale globally while creating economic impact locally. This achievement showcases the power of SmartZone resources in accelerating groundbreaking businesses, and we’re thrilled to see 3R Pallets lead the way in sustainable supply chain solutions.”

3R Pallets is just one of only a handful of Michigan-based startups accepted into Techstars, and the first from the Lansing area. The company aims to revolutionize the archaic wooden shipping pallet industry with innovative solutions utilizing plant by-product materials. In doing so, they create cost savings, reduce waste and increase efficiency in shipping.

“We help our customers ship more stuff for less money using fewer pallets, sustainably,” Guenther said. “Half of all hardwood trees cut in North America every year go to make shipping pallets, and they’re generally only used 1 to 5 times before they get sent to landfill. Because our pallets can be used up to 50 times, they’re perfect for reuse inclosed-loop systems like warehouses and distribution centers. This saves our customers substantial amounts of money.”

To get through Techstars rigorous application process, 3R had to demonstrate key attributes, including strong leadership, a scalable business model, early traction and a unique competitive advantage.  The company’s talent, along with the support services from LRSZ, helped them become part of the elite 1 percent of companies accepted into the program.

3R’s founders have been passionate about sustainability since their childhood. Patil is the son of a rice farmer from rural India, where he saw the waste created through farming and air pollution through  crop burning. Guenther’s father was part of the team that created the one-gallon milk jug. She grew up on the shop floor learning everything about plastics and was particularly concerned about the waste that is produced. 

The global demand for more sustainable solutions is driving rapid interest in 3R’s products from businesses across the country.  

“Sustainability is no longer a trend or a bonus – it’s a requirement,”  Guenther said. “Businesses are becoming much more aware of the negative impact of the waste they produce on society, and their need to respond to customers who are demanding more sustainable innovations. But in order to work for them, our solution had to meet or exceed what the existing wooden pallets can provide, in terms of cost, durability and ease of use. That’s why we’re so excited about these products. We’ve created a better product, that is better for our customers and the environment.” 

LRSZ Executive Director Angel Miller said that 3R Pallets’ success represents a major win for Lansing’s startup community.

“We’re thrilled to see the 3R team spread its wings and position their company as an industry leader in sustainable shipping solutions,” Miller said. “As an innovation hub, we’re here to support businesses that transform industries and change the world. We’re also excited that they will be working with us to mentor the next generation of Lansing entrepreneurs to help them grow and thrive.” 

“The success of 3R Pallets underscores the exceptional caliber of innovation within the Lansing region,” said Abbie Tykocki, chair of the Local Development Finance Authority, the board of the LRSZ. “When a community works to accelerate high-impact, sustainable businesses, the result is world-changing companies that will shape the future and entrepreneurs who understand the critical need to reach back and propel others forward. We’re incredibly proud of Guenther and Patil’s accomplishments and look forward to working with them to find and nurture the next tech star.”

To learn more about the 3R, please visit their website.

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