Climate tech
Q2 202411.04.2024

Circular Economy

Picture of Shubham Jaipuria

Shubham Jaipuria

at Sifted

In simple terms, circular economy means that products are made from recycled materials, and they are intended to be easily reused or recycled. But despite the hype around circular economy efforts, the Circle Economy Foundation reports that circularity attempts in the world are actually going in reverse, with only 7.2% of materials currently cycled back into the economy — down from 9.1% six years ago.

The potential is massive across different sector niches. On the cutting edge of things, you’ll find industrial materials such as concrete, plastic, foam, carbon fibre and even food all beginning to be created using carbon dioxide (CO2) pulled out of the air. And with the rising demand for Electric Vehicles, the need to establish an efficient system to recycle lithium batteries has become integral. Moreover, the fashion crisis is giving birth to a new wave of startups focusing on second-hand clothing and fashion apparel made using recycled materials. But in line with the overall slowdown in 2023, VC investment for circular economy startups in Europe totalled $1.6bn, a sharp drop from the $2.2bn raised in 2022. Series B+ funding in particular was lacklustre, while Series A did better in 2023 than in 2022.

20 startups to watch

  • METYCLE logo

    Sifted score

    8.56
    -

    METYCLE

    • Strong investor(s)
    • Serial founder(s)
    • Year founded

      2022

    • HQ

      Cologne, Germany

    • Latest round

      Seed
      4.7m / Dec 2023

    • Total funding

      6.2m

  • Circu Li-ion S.A. logo

    Sifted score

    7.87
    -

    Circu Li-ion S.A.

    Battery lifespan extension for sustainability.

    • Strong investor(s)
    • Serial founder(s)
    • Hiring
    • Year founded

      2021

    • HQ

      Foetz, Luxemburg

    • Latest round

      Seed
      8.5m / Oct 2023

    • Total funding

      8.5m

  • Paebbl AB logo

    Sifted score

    7.4
    -

    Paebbl AB

    Carbon reduction through CO2 conversion.

    • Serial founder(s)
    • Hiring
    • Year founded

      2021

    • HQ

      Rotterdam, Netherlands

    • Latest round

      Seed
      8m / Oct 2022

    • Total funding

      8m

  • one-five logo

    Sifted score

    7.33
    -

    one-five

    • Strong investor(s)
    • Year founded

      2020

    • HQ

      Holm, Germany

    • Latest round

      Seed
      10.5m / Mar 2023

    • Total funding

      10.5m

  • Fairmat logo

    Sifted score

    7.33
    -

    Fairmat

    Recycling carbon fiber for sustainability.

    • Strong investor(s)
    • Hiring
    • Year founded

      2020

    • HQ

      Paris, France

    • Latest round

      Series A
      34m / Nov 2022

    • Total funding

      42.6m

Related Briefings

Related articles

Can Sana’s AI really reason? Yes, says founder Joel Hellermark
DeeptechInterview

May 16, 2024

Can Sana’s AI really reason? Yes, says founder Joel Hellermark

Picture of Joel Hellermark, CEO and founder of AI startup Sana AI
By Mimi Billing
15 Baltic startups to watch, according to investors

May 16, 2024

15 Baltic startups to watch, according to investors

The region is booming with early-stage ventures

By Zosia Wanat
Wise founder and Plural partner Taavet Hinrikus on scaling European deeptech
DeeptechInterview

May 16, 2024

Wise founder and Plural partner Taavet Hinrikus on scaling European deeptech

A picture of the Plural team.
By Tim Smith
French fintech Lydia to invest €100m in banking services, aims to reach profitability in 2025

May 15, 2024

French fintech Lydia to invest €100m in banking services, aims to reach profitability in 2025

By Daphné Leprince-Ringuet
Women are leaving tech - we need it to stop
Startup LifeAnalysis

May 15, 2024

Women are leaving tech - we need it to stop

Despite an increasing number of diversity panels and events, knowing what to do to keep women in tech careers can be difficult

By Miriam Partington
Cylib raises €55m Series A for lithium-ion battery recycling

May 15, 2024

Cylib raises €55m Series A for lithium-ion battery recycling

By Miriam Partington
UiPath is investing $35m in French AI startup Holistic

May 15, 2024

UiPath is investing $35m in French AI startup Holistic

The robotic automation software company is a strong backer of the latest AI startup to emerge in Paris

By Daphné Leprince-Ringuet
Scottish AI startup cofounded by Meta graduate raises £6m to build GenAI apps for business

May 15, 2024

Scottish AI startup cofounded by Meta graduate raises £6m to build GenAI apps for business

A picture of the Malted team.
By Tim Smith
Europe’s only nuclear unicorn raises €87m

May 14, 2024

Europe’s only nuclear unicorn raises €87m

UK-based Newcleo tells Sifted another close could come before the summer — as the company targets a $1bn round

By Kai Nicol-Schwarz
Slovenia's government wants to overhaul its startup policies

May 14, 2024

Slovenia's government wants to overhaul its startup policies

By Zosia Wanat
'We need to get to profitability quickly' - GoCardless CEO Hiroki Takeuchi's new sense of urgency
FintechInterview

May 14, 2024

'We need to get to profitability quickly' - GoCardless CEO Hiroki Takeuchi's new sense of urgency

GoCardless CEO Hiroki Takeuchi
By Tom Matsuda
Synthetic intimacy: Is AI solving the loneliness epidemic or making it worse?
DeeptechOpinion

May 14, 2024

Synthetic intimacy: Is AI solving the loneliness epidemic or making it worse?

A headshot of Ron Ivey.
By Ron Ivey
Enspired secures €25m for battery storage energy tech

May 14, 2024

Enspired secures €25m for battery storage energy tech

As more renewables are hooked up to the electricity grid, investors are cottoning on to the opportunity around the energy storage market 

By Freya Pratty
Accel raises $650m fund for European early-stage startups

May 14, 2024

Accel raises $650m fund for European early-stage startups

The American VC says it remains deeply committed to Europe — despite the downturn

By Daphné Leprince-Ringuet
Hoards of European VCs are hunting for Gulf LPs

May 13, 2024

Hoards of European VCs are hunting for Gulf LPs

An illustration of the Dubai skyline with maps of Europe and the Gulf region.
By Freya Pratty
The 10 fastest-growing startups in the Nordics
Startup LifeAnalysis

May 13, 2024

The 10 fastest-growing startups in the Nordics

Picture of 1X's CEO Bernt Øivind Børnich and the android EVE
By Mimi Billing
‘Not being subject to the EU’s regulatory fervour is massively working in our favour’ - AI thrives in Brexit Britain
DeeptechAnalysis

May 13, 2024

‘Not being subject to the EU’s regulatory fervour is massively working in our favour’ - AI thrives in Brexit Britain

London skyline
By Tim Smith
Bill Gates' investments: A look at his European startups portfolio

May 13, 2024

Bill Gates' investments: A look at his European startups portfolio

By Freya Pratty and Mimi Billing
VCs increasingly reliant on government money in 2023

May 10, 2024

VCs increasingly reliant on government money in 2023

According to a new report, governments were the only source of VC funding that increased year-on-year in 2023

By Kai Nicol-Schwarz
April’s early-stage funding wrapup: Big month for healthtech and UK maintains its crown

May 10, 2024

April’s early-stage funding wrapup: Big month for healthtech and UK maintains its crown

By Shubham Jaipuria
Fintech Farm raises $32m to expand its ‘neobank in a box’ model to India

May 10, 2024

Fintech Farm raises $32m to expand its ‘neobank in a box’ model to India

By Tom Matsuda
How to get your team to share their failures

May 10, 2024

How to get your team to share their failures

Businessman stopping the domino effect on gray background.
By Anisah Osman Britton
European climate tech flocks to the oil-rich Gulf
Climate TechAnalysis

May 9, 2024

European climate tech flocks to the oil-rich Gulf

An illustration of the Dubai skyline along with maps of Europe and the Gulf states.
By Freya Pratty
Bill Gates flies to Berlin to discuss Germany's climate tech future

May 9, 2024

Bill Gates flies to Berlin to discuss Germany's climate tech future

By Miriam Partington