Waste management & recycling
The startups taking out the trash
Last updated: 16 Dec 2021
Market 101
We are – quite literally – in a toxic relationship with plastic. Cheap, versatile and durable, it’s been the bedrock of sectors ranging from packaging and electronics to construction and transport. But over the decades, industry’s production of it has outpaced our ability to handle the waste. As our landfills and oceans fill up, consumers are taking notice and regulators are doubling down, with the EU, for example, introducing the world’s toughest rules against plastic pollution in January 2021.
There’s just one problem: waste management is a fragmented sector that, in many ways, is still figuring out the basics. Startups are sorting out the logistics of ensuring that enough high-quality waste is recovered, as well as the hard science of how to recycle some materials in the first place — or create entirely new ones. If not fully weaning us off plastic, they’re reimagining our dependence on it to make a world that’s less destructive and more regenerative.
Early stage market map
Key facts
41.5
% of plastic packaging in the EU that is recycled (compared with a global average of 16%)1
€0.80
levy per kilogram of nonrecycled plastic packaging waste faced by plastic producers in the EU since January 1 20212
€364bn
global waste management market size in 20213
Trends to watch
1. From open to closed-loop recycling
→ Today, recycling primarily restricts itself to open-loop systems, where materials are converted into new raw materials usually used for a different purpose.
→ The next frontier is closed-loop systems, in which materials can be recycled indefinitely and reused for the same products.
2. Back to basics: process optimisation
→ Waste management and mechanical recycling still largely rely on manual processes, which makes them hard to scale.
→ Investment in automation, for example through the use of sensors in waste collection or machine learning in waste separation, could futureproof the industry against increases in waste and recycling volumes.
3. The other kind of recycling
→ Chemical recycling dissolves plastic waste into its basic elements so it can then be turned into alternative fuels or new plastic. Unlike mechanical recycling, the process works with mixed, contaminated waste, which can be up or downcycled as needed.
→ Startups are hoping to increase adoption by gradually lowering the method’s energy intensiveness and high cost.
4. The future of packaging
→ A significant contributor to waste, packaging usually relies on multiple materials which makes it particularly difficult to recycle.
→ Startups are now tinkering with more easily recyclable mono-materials, and developing bio-based plastic replacements that are recyclable and/ or compostable.
Startups tracked by Sifted
Sifted take
New laws have been effective in getting the chemical and waste management industries to take action on recycling. The larger challenge will be solving the sector’s muddled economics, strained by low revenues from recyclables and their lack of price competitiveness compared with virgin materials.
Rising stars
Offers an online marketplace for selling and procuring recycled plastic, both for short and long-term business needs.
Round
Seed
Date
2021
Size
€3.3m
Developed a plant-based substitute for single-use plastics, which decomposes naturally but performs like traditional synthetic polymers.
Round
Seed
Valuation
€35m
Date
2021
Size
€7.2m
Developed a computer vision software that automates waste composition analyses by monitoring waste flows and distinguishing between different waste categories.
Round
Seed
Valuation
€11m
Date
2020
Size
€3.4m
Early stage startups to watch
&Repeat
Recycling
€1.8m
€1.5m
-
CELLUGY
Alternative materials
€4.9m
€2.4m
-
cirplus
Recycling
€4.5m
€3.3m
€15m
Cycled Technologies
Recycling
€950k
€150k
€8m
DePoly
Recycling
€2.9m
€1.2m
€4.2m
Ecotree Romania
Recycling
€650k
€430k
€2m
Greyparrot
Waste sorting
€4.5m
€3.4m
€11m
Healix BV
€10m
€10.5m
-
Lasso Loop Recycling Ltd. (formerly ReCircle Recycling Ltd.)
Recycling
€2.3m
€433k
€6.2m
Naturbeads
Alternative materials
€1.2m
€150k
€2.8m
NOOSA
Alternative materials
€500k
€500k
€1m
Poliloop
Upcycling
€1.8m
€1.7m
-
Pyxo
Reuse
€7m
€7m
-
Reath Technology Ltd T/A Reath
Reuse
€370k
€370k
€3m
RECYCLEYE
Waste sorting
€5.6m
€4.2m
-
ROSI
Upcycling
€1.3m
€1.3m
€4m
Seenons
€7.8m
€6m
-
Votechnik
Recycling
€6m
€2.1m
-
Xampla
Alternative materials
€10.2m
€7.2m
€35m
Europe’s success stories
Who early stage startups are up against
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Market cap €426m [as of Dec 14]
→ Developed an alternative to traditional recycling by using enzymes to both recycle all types of PET waste and produce new materials with minimal quality loss
(Pre-)Seed
Series A
Series B
Series C
Series D+
IPO/Exit
→ Market cap 7.1bn SEK (€689m) [as of Dec 14]
→ Developed a dissolving pulp made from textile waste to make regenerated fibres for the fashion industry, including H&M with which it has a longterm partnership
Sources
Research reports
The case for increasing recycling: Estimating the potential for recycling in Europe | June 2020 | European Environment Agency
News articles
1, 2 Europe’s Drive to Slash Plastic Waste Moves Into High Gear | June 2021 | Yale E360
The European recycling landscape – the quiet before the storm? | August 2020 | McKinsey
Helping build the circular economy for plastics | March 2020 | McKinsey
The drive toward sustainable packaging | January 2020 | McKinsey
Market research
3 Waste Management Market - Global Forecast to 2026 | July 2021 | ReportLinker
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