Today we show you the results for the first half of 2024 of the first European study of the circular economy startup sector developed by Net Zero Insights and TheCircularLab-Ecoembes.
The first half of 2024 (in the absence of information for the month of June) has been the period with the highest financing rounds in the circular economy to date (since 2021). The companies carried out the greatest number of rounds in packaging, plastics and batteries and vehicles.
Startups in more mature stages are the most stable in the rounds, while those in the seed phase decline, reflecting a cautious investment environment that prioritizes proven business models and greater market fit.
The top 3 in financing are the batteries and vehicles sector, the construction sector and the food, water and nutrients sector, with notable examples such as Northvolt, Picnic Tech, Hydraloop or Protix.
Regarding the financing of circular packaging specifically, this reached a record of 417M euros. This data, combined with a lower number of deals, suggests changes in investment approach or market consolidation.
Primary packaging receives the most attention from investors. Startups related to manufacturing and packaging lead circular financing.
The financing focuses on compostable/biodegradable and reusable packaging among the different packaging property segments. In terms of materials, biopolymers dominate funding.
Circular packaging startups attract investment at all stages, remaining constant in the 1st stages, reflecting continued support for new companies.
Finally, it can be highlighted that while bank and government investments have decreased, the interest of venture investors has shown an upward trend in packaging in the last 3 years.
These points offer an overview of the current state and emerging trends in circular economy startup financing in Europe, being a valuable guide to identify investment and collaboration opportunities in this dynamic sector.
For more details, the full study report for the first half of 2024 is freely available here.