The BioDesign Newsletter

Issue #010

After UN’s Secretary General, António Guterres proposed a worldwide ban on fossil fuel advertisements and labelled the fossil fuel industry the ‘godfathers of climate chaos’, it seemed only fitting we brought you some investment updates and progress in the sustainable materials space.

• Kelpi secures £4.35M, surpassing investment goal

• Renewcell get a new lease of life, as Circulose, after acquisition 

• Syre raise $100M in Series A

Kelpi surpasses investment goal with £4.35M

Bristol-based company, Kelpi, is challenging the plastic packaging industry with a seaweed-based coating. Their biomaterial is water and grease-resistant, providing a packaging option that is not reliant on fossil-fuels. Kelpi has secured £4.35M in their recent round of equity funding. This sum surpasses the initial goal of £3M, a testament to the strong belief in the innovative technology. 

This funding will fuel the next steps for the biomaterials company. These steps include gaining regulatory approval for their coating to be used on card and paper, and the development of their manufacturing plants. This successful round of fundraising, alongside their research and development contracts with L’Oréal and Waitrose & Partners, keeps Kelpi on track to get their biomaterial onto shelves by 2025. 

From the ashes, of Renewcell, rises Circulose

The Swedish textiles recycling company, Renewcell has been given a new lease of life, after filing for bankruptcy in February 2024. Investment firm Altor Equity Partners acquired Renewcell’s remaining assets and renamed the company Circulose, an homage to Renewcell’s champion material. The material is produced via a patented process that turns textile waste into pulp. This pulp can then be spun into fibres and woven into a new high-quality fabric – Circulose. 

Renewcell’s financial difficulties sent shockwaves through the sustainable textiles community with Michael Berg (Chairman of the Board of Directors, Renewcell) attributing the situation to a “lack of leadership and necessary pace of change in the fashion industry”. However, Altor remains optimistic. Clara Zverina, Altor principal, expressed that the firm “don’t shy away from a challenge” and that they are “determined to partner with key stakeholders across the value chain to together unlock the potential of Circulose.” 

This acquisition presents a significant opportunity. It also provides the fashion industry with another chance to demonstrate its support for sustainable alternatives at scale, as Circulose picks up the torch of renewable cotton. 

Syre raise $100M in Series A

Syre, a textile recycling company, announced the success of their Series A funding round, raising $100M (£78.6M). Starting with their recycled polyester technology, Syre has a vision to decarbonise and dewaste textiles. From this round of equity funding, the company has a plan to acquire the patent at the heart of their solution as well as support the construction of their flagship plant in the US.  

Volvo Cars, is among the equity investors. The addition of the textiles recycling company to the Volvo Cars Tech Fund is a strategic move to support the automotive company’s goal to achieve net-zero greenhouse gas emissions by 2040. Syre welcomed their newest founding investor stating that “the automotive industry is a heavy textile and polyester user, and we [Syre] are proud to partner up with a leader in the industry”. 

The BioDesign Newsletter is a free publication.

To support our work, consider subscribing to get the latest publications and sharing with someone that you think would find our content insightful.