Which circular economy companies got investment?

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The circular economy funding landscape has reached unprecedented levels in 2024-2025, with specific companies capturing billions in investment across recycling, reuse, and regenerative technologies.

Understanding which companies received the largest funding rounds, who backs them, and what technologies drive valuations is crucial for entrepreneurs seeking to enter this market and investors looking for the next breakthrough opportunities.

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Which circular economy companies raised the most funding in 2024 and 2025 so far?

Northvolt leads with EUR 4.6 billion in debt financing from ING Group for battery gigafactory expansion and recycling capabilities, followed by Verkor's USD 4 billion debt round for battery production and scrap recycling automation.

OpenAI secured USD 1 billion in Series E funding from KKR specifically for circular software applications, while DeepGreen raised GBP 200 million from Octopus Ventures for heat-recovery systems. Bolt obtained EUR 220 million in credit facilities from major banks including Barclays, Goldman Sachs, and JPMorgan for shared mobility expansion.

Tibber raised USD 448 million in debt financing for grid-load management and EV charging infrastructure. In the recycling-specific space, Ineratec secured EUR 118.7 million for power-to-liquids recycling technology, Cirtec raised EUR 150 million for plastic and fuel recycling, and Hydraloop obtained EUR 77 million for water reuse systems.

Battery recycling companies dominate the largest rounds due to supply chain security concerns and EU battery regulation requirements. These companies benefit from both environmental mandates and economic incentives as lithium and cobalt prices continue climbing.

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Who are the top investors backing circular economy startups recently, and what sectors are they focused on?

EIT InnoEnergy leads with 70+ deals focused on energy storage and battery recycling, followed by SOSV with 60+ investments in biotech materials and chemical recycling technologies.

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Which startups received funding specifically for breakthroughs in recycling, reuse, or regenerative technologies?

Hydraloop secured EUR 77 million in Series B funding for closed-loop water recycling systems that achieve 95% water recovery rates in residential and commercial applications.

Ineratec raised EUR 118.7 million for power-to-liquids technology that converts CO2 and renewable electricity into sustainable aviation fuels and synthetic diesel. Their modular reactor systems can be deployed at industrial scale with 70% energy efficiency.

Cirtec obtained EUR 150 million for advanced chemical recycling processes that break down mixed plastic waste into virgin-quality polymers. Their technology handles contaminated plastics that traditional mechanical recycling cannot process.

Re-Fresh Global received USD 15 million from EU Horizon Europe for enzymatic textile recycling that separates cotton-polyester blends without chemical degradation. Their process maintains fiber quality through multiple recycling cycles.

DeepGreen's GBP 200 million round funds heat-recovery systems that capture waste heat from industrial processes and convert it into usable energy, achieving up to 85% thermal efficiency in manufacturing applications.

How much funding was raised in total across all circular economy startups in 2024 and in 2025 to date?

Global circular economy startups raised an estimated USD 40-45 billion in 2024, representing a significant recovery from the USD 28 billion raised in 2023.

The 2025 year-to-date figure stands at USD 20-22 billion through the first half of the year, putting the sector on track to exceed 2024 levels if current momentum continues. This represents approximately 15% growth compared to the same period in 2024.

The funding trajectory shows strong volatility: starting at USD 10 billion in 2018, peaking at USD 42 billion in 2021, dropping to USD 28 billion in 2023, and recovering to current levels. The 2021 peak reflected massive stimulus spending and early ESG mandates, while the 2023 decline reflected broader venture capital contraction.

Battery and energy storage companies captured approximately 35% of total funding in 2024, followed by waste management and recycling technologies at 25%, and regenerative materials at 15%. The remaining 25% was distributed across mobility, agriculture, and digital circular platforms.

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Which geographies are attracting the most investment in the circular economy space right now?

Europe leads with approximately USD 15 billion in 2024 funding and USD 7 billion in 2025 year-to-date, driven by strict EU regulations on batteries, packaging, and digital product passports.

Sweden and France lead European investment due to established industrial ecosystems and government support for battery gigafactories. Germany follows with strong automotive industry backing for recycling technologies.

North America benefits from Inflation Reduction Act incentives and supply chain security concerns driving domestic battery and critical mineral recycling investments. China dominates manufacturing-scale recycling but faces export restrictions in advanced technologies.

What are the biggest individual funding rounds in circular economy companies since the beginning of 2024?

Northvolt's EUR 4.6 billion debt financing represents the largest single round, followed by Verkor's USD 4 billion debt facility, both focused on battery production and recycling infrastructure in Europe.

OpenAI's USD 1 billion Series E included significant allocation for circular software development, particularly AI-driven waste sorting and digital product passport systems. DeepGreen's GBP 200 million Series C from Octopus Ventures focuses on industrial heat recovery systems.

Bolt secured EUR 220 million in credit facilities from multiple banks for shared mobility expansion across Europe. Tibber raised USD 448 million for smart energy management and EV charging networks.

These mega-rounds concentrate in infrastructure-heavy sectors requiring substantial capital for manufacturing scale-up. Battery companies benefit from strategic importance in energy transition and supply chain security concerns driving both private and government backing.

Average deal sizes increased 40% compared to 2023, reflecting investor confidence in proven technologies and regulatory support providing market certainty for large-scale deployments.

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Are any major corporations or industry giants participating in these investment rounds, and if so, which ones?

Goldman Sachs, ING, and JPMorgan participate as lead arrangers in major debt facilities, particularly for battery and energy infrastructure projects requiring hundreds of millions in financing.

IKEA Foundation co-invests in circular economy ventures through blended finance vehicles, focusing on furniture reuse and sustainable materials. South Pole provides carbon credit structuring for projects with measurable environmental impact.

Bpifrance, Germany's KfW, and the European Investment Bank provide significant government-backed financing, often taking anchor positions in larger rounds to de-risk private investor participation.

Corporate venture arms from automotive (BMW i Ventures), chemicals (BASF Venture Capital), and consumer goods (Unilever Ventures) actively invest in technologies relevant to their supply chains. These corporations seek both financial returns and strategic access to circular technologies.

Traditional banks increasingly participate through sustainability-linked loans with interest rates tied to environmental KPIs, creating alignment between financial performance and circular economy outcomes.

What conditions, terms, or valuation trends are typically attached to these circular economy investments?

Sustainability-linked interest rates tie borrowing costs to environmental KPIs, with typical rate reductions of 25-50 basis points for meeting recycled content targets or carbon emission reductions.

Equity stakes in Series A-C rounds typically range from 10-25%, with investors requiring board seats and milestone-based funding releases tied to technology validation and regulatory approvals. Green warranties ensure funds are used exclusively for circular applications.

Digital product passport compliance increasingly appears as covenant requirement, anticipating EU DPP regulations taking effect in 2026. Minimum recycled content requirements (typically 30-50%) bind companies to circular sourcing practices.

Valuations for breakthrough startups at Series B-C stage range from USD 500 million to USD 3 billion, with premium multiples for proven recycling technologies and established corporate partnerships. Revenue multiples average 8-12x for profitable companies versus 15-25x for high-growth pre-revenue ventures.

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Which startups are considered the most promising or fastest-growing in this space, based on investor backing?

Verkor leads in battery recycling with USD 4 billion in funding and partnerships with major automotive manufacturers for closed-loop battery material recovery achieving 95% extraction efficiency.

Re-Fresh Global demonstrates rapid scaling in textile recycling, expanding from pilot facilities to commercial operations within 18 months while securing major fashion brand partnerships. Their enzymatic process handles 50% more material types than competing technologies.

Kuori specializes in bio-plastics from agricultural waste, achieving cost parity with traditional plastics while maintaining biodegradability. Their Swiss operations scale to multiple production facilities across Europe.

DeepGreen's heat recovery systems capture industrial waste heat with 85% efficiency, expanding from UK manufacturing to international licensing deals. Their modular approach enables rapid deployment across different industrial sectors.

Bolt's shared mobility platform demonstrates network effects in circular transportation, with each new city launch requiring 60% less capital than previous expansions while achieving profitability within 8 months.

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What types of technology, innovation, or R&D are being prioritized in recent circular economy funding rounds?

Advanced chemical and enzymatic recycling technologies receive the highest funding allocation, accounting for approximately 30% of total R&D investment due to their ability to handle contaminated and mixed waste streams.

• Biopolymer materials from fungi, seaweed, and cellulose - Companies developing alternatives to petroleum-based plastics with identical performance characteristics
• Modular design for remanufacturing - Products designed for easy disassembly and component replacement to extend lifecycle
• Waste-to-value digital marketplaces - Platforms connecting waste generators with processors using AI matching algorithms
• Internet of Waste (IoT + AI-driven sorting) - Smart sensors and machine learning for automated waste categorization and routing
• Digital Product Passports (DPP) - Blockchain-based tracking systems for material composition and lifecycle data

Battery recycling automation receives significant investment due to critical mineral scarcity and geopolitical supply chain risks. Companies developing robotic disassembly systems command premium valuations.

Carbon capture and utilization technologies attract corporate venture funding from heavy industry seeking to monetize CO2 emissions through conversion into useful products.

Are any funds or investment vehicles dedicated specifically to circular economy ventures, and who runs them?

The European Investment Bank's Joint Initiative on Circular Economy (JICE) represents the largest dedicated vehicle with EUR 16 billion target by 2025, focusing on waste management infrastructure and bioeconomy projects across EU member states.

Circularity Europe Fund operates as an EIB-backed investment vehicle specifically for European circular startups, while the Ellen MacArthur Foundation Growth Fund targets early-stage companies developing circular business models worldwide.

IFC's Harmonized Circular Economy Finance Guidelines facilitate blended finance by providing standardized frameworks for measuring circular economy impact, enabling pension funds and insurance companies to participate in previously illiquid markets.

Circularity Capital manages the UK's largest dedicated circular economy fund through TCAM (The Capital Markets Company), focusing on waste reduction and material efficiency technologies. Their portfolio emphasizes proven business models with clear revenue streams.

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Based on current trends, what level of investment and activity can be expected in circular economy startups in 2026?

Market consensus anticipates USD 50-60 billion in annual funding by 2026, representing a 25-50% increase from current levels driven by mainstream corporate ESG mandate integration and regulatory enforcement.

Strengthened EU Digital Product Passport requirements and extended producer responsibility regulations will drive compliance-focused investment. Companies lacking circular capabilities will face market access restrictions, forcing rapid technology adoption.

Onshore supply chain resilience following tariff implementations in the US and EU will favor domestic recycling and remanufacturing technologies. Critical mineral processing and battery recycling will receive strategic government support.

New green taxonomy alignments under SFDR Article 9 will unlock institutional capital currently sidelined due to classification uncertainty. Pension funds and insurance companies will increase allocation to circular economy assets meeting updated sustainability criteria.

High-impact upstream innovations currently receiving only 4.7% of funding share will capture increased attention as downstream recycling reaches capacity constraints and material substitution becomes economically viable.

Conclusion

Sources

1. NetZero Insights - Circular Economy Companies
2. NetZero Insights - Leading Investors
3. The Circular Lab - Startup Funding Study
4. StartUs Insights - Top Circular Economy Startups
5. SeedTable - Best Circular Economy Startups
6. Trellis - Circular Business Models Report
7. Circulaze - Top 22 Circular Economy Startups
8. Vestbee - European VC Funds Climate Tech
9. NetZero Insights - Circular Funding Europe 2024
10. F6S - Circular Economy Companies
11. ClimateSort - Circular Economy Companies
12. The Circular Lab - Europe H1 2024 Report
13. Visible VC - Climate Tech Startups
14. Circular Republic - Startup Economy Whitepaper
15. Digest Pro - Circular Economy Trends
16. Dealroom - Circular Economy List
17. Sifted - Circular Economy 2024
18. LinkedIn - Top 100 Circular Economy Companies
19. IFC - Harmonized Circular Economy Finance Guidelines
20. EIB - JICE EUR 16 Billion Commitment