Industries are moving away from linear production toward circular models, creating new opportunities for innovation and growth. As these models scale, strategic investments are crucial to accelerating the transition.
With 17.9% of all Climate Tech funding with an environmental objective in 2024 allocated to circular economy solutions, investment in this space is steadily growing. Venture capital firms, corporate investors, government agencies, and banks are at the forefront of this transition, backing solutions that enhance material recovery and create new value chains.
Five Most Active VC Investors
These top VC firms are strategically funding startups, driving scalable innovation and long-term market growth.
- EIT InnoEnergy: An impact investing firm supporting innovations that optimize resource conversion and drive the growth of the circular economy. EIT InnoEnergy has invested in over 70 deals to date, spanning early- to late-stage companies and grants.
- SOSV: A global venture capital firm backing Climate Tech solutions that tackle climate change through sustainable innovations in the circular economy and beyond. SOSV has closed more than 60 deals across early- to late-stage companies.
- Breakthrough Energy: An impact investment firm focused on developing and scaling critical solutions needed for the net-zero transition. They have made nearly 50 deals in this sector alone, including early- to late-stage companies and select grants.
- Speedinvest: An Austrian-based venture capital fund investing in pre-seed, seed, and early-stage Climate Tech companies, including circular economy marketplaces and related innovations. They have closed 40 deals.
- Katapult: A venture capital firm offering investment in high-growth impact tech startups across circular economy, energy, mobility, and the built environment. Katapult has closed ~40 deals from early- to late-stage companies and delivers accelerator programs to support startup growth.
Five Most Active CVC Investors
These are some of the leading corporations investing in circular solutions that drive industry-wide change.
- Shell: A British multinational oil and gas company supporting circularity in the global plastics market, has invested in nearly 30 deals, funding early- to late-stage companies that drive circular innovation and resource efficiency.
- Amazon: An American multinational technology company investing in scalable, industry-wide solutions for the circular economy, has participated in around 20 deals, funding early- to late-stage startups, including select equity investments.
- Siemens: A German technology company facilitating the transition from linear to circular industrial models. Siemens has closed over 15 deals, investing through debt financing, acquisitions, equity, and early-stage funding.
- Engie: French energy firm Engie backed 15 early- to late-stage startups within the circular economy in 2024.
- Itochu Corporation: A Japanese trading company focused on resource circulation and manufacturing efficiency initiatives, closed 15 deals in early- to late-stage companies.
Five Most Active Government Agencies
These government institutions are accelerating circular economy innovation and creating market opportunities for investors.
- UK Research and Innovation (UKRI): A government organization funding UK-based research and innovation to improve resource efficiency and accelerate the transition to a circular economy. UKRI has awarded over 400 grants to advance sustainability in this sector.
- European Commission Fund: An early-stage venture capital fund supporting research and innovation focused on sustainable waste management, material efficiency, and circular consumer products. The fund has provided nearly 400 grants to drive circular economy initiatives.
- U.S. Department of Energy (DOE): A government entity fostering the development of circular supply chains for energy materials and products. The DOE has issued approximately 300 grants to accelerate technology deployment and improve product and material circularity.
- National Science Foundation (NSF): A U.S. government agency promoting the transition to a circular economy for advanced materials. NSF has awarded close to 200 grants to support research and development in this field.
- U.S. Small Business Administration: A federal agency focused on funding innovation in circular economy solutions, has provided nearly 150 grants to support businesses driving sustainable resource management.
Five Most Active Banks
These financial institutions are financing the circular transition, providing capital for businesses optimizing resource efficiency and sustainability.
- Santander: A Spanish multinational financial services firm committed to fostering the transition to renewable energy and a circular economy. Santander has made 15 deals in this space through debt financing, grants, growth equity, and funding for early- to late-stage companies.
- HSBC: A British bank and financial services group supporting Climate Tech companies advancing the circular economy. HSBC has closed 10 deals, primarily through debt financing.
- DBS Bank: A Singapore-based multinational bank focused on enabling the circular economy and accelerating the EU’s net-zero goals. DBS made 10 deals in 2024, spanning grants, debt financing, early venture capital, and post-IPO funding.
- Varengold Bank AG: A German-based bank supporting circular economy initiatives aimed at conserving and optimizing finite resources. The bank participated in nearly 10 deals, focusing on debt financing and early-stage startup funding.
- UniCredit: An Italian commercial banking institution committed to facilitating the transition toward a circular economy for a more sustainable and equitable future. UniCredit participated in 10 deals, including debt financing, grants, and funding for early-stage companies.
Investors Drive the Circular Economy’s Next Growth Phase
The circular economy is gaining momentum as industries shift away from linear to sustainable circular models. Investors are playing a crucial role in scaling these innovations by funding solutions that reduce waste, optimize resources, and create new value chains.
As capital continues to flow into circular economy ventures, staying ahead of investment trends is essential for identifying high-impact opportunities. Investors who recognize the potential in this sector will inspire the next wave of companies.
Looking to navigate this evolving landscape? Our market intelligence platform provides real-time insights on emerging opportunities. Request a demo with us today to explore high-growth investments that are driving the circular economy.
