With L’Oréal as the anchor investor, the €150m fund managed by France-based Demeter and Canada’s Cycle Capital aims to scale growth-stage circular innovations across packaging, materials, processes, logistics and recycling & waste.
French beauty group L’Oréal is investing €50m through its L’Oréal for the Future sustainability program in a €150m venture capital fund focused on circular innovation. Dubbed Circular Innovation Fund (CIF), the joint venture between cleantech capital managers Cycle Capital and Demeter invests in companies across Europe, Asia and North America.
The fund targets companies developing new materials, circular packaging solutions, eco-efficient processes, logistics and recycling & waste innovations. These include Aphea.Bio, a Belgian developer of agricultural biologicals designed to reduce the use of fertilizer, and For Days, a US-based zero-waste circular fashion brand. Thanks to a partnership with Cycle Capital’s Cycle Momentum platform, CIF will also sponsor a three-year acceleration program designed to support start-ups at the Seed/Series A funding stage in Europe, North America and Asia.
“As organizations and individuals are feeling the pressure of climate change, sustainable investing strategies will continue to soar. This strategic collaboration between impact investors and established institutions comes at a pivotal point as we need to re-think how we consume goods globally. The Circular Innovation Fund has the potential to drastically re-design how we extract, manufacture, consume and dispose of goods and materials,” explain Andrée-Lise Méthot, Founder & Managing Partner of Cycle Capital and Stéphane Villecroze, Co-Founder and Managing Partner of Demeter.
Other CIF investors include energy player Axens, and investment firms Haltra and Claridge.