Recognizing the increasing pressure on natural resources and the urgency to develop circular economy solutions, L'Oréal Group announced its participation in the Circular Innovation Fund last week. As lead investor, L'Oréal is contributing €50 million to this new €150 million fund as part of its L'Oréal for the Future sustainability program. Managed by Demeter, a French company, and Cycle Capital, a Canadian firm, the fund will also benefit from a wide range of investors, including strategic investor Axens, family offices such as Haltra and Claridge, as well as private investors and managers.
The Circular Innovation Fund will invest in technology companies and businesses in North America, Europe and Asia developing innovations that enable circular use of resources in sectors as diverse as new materials in the bio-economy, circular solutions for packaging, recycling and waste materials, logistics and eco-efficient processes.
CIF will also sponsor a global acceleration program through a partnership with Cycle Momentum. The program will offer support for startups at the Seed/Series A stage with cohorts across Europe, North America and Asia over 3 years.
"L'Oréal Canada is very proud that a Canadian firm has been selected to manage the Circular Innovation Fund, a project that is highly strategic in achieving our L'Oréal sustainability goals for the future," said An Verhulst-Santos, CEO of L'Oréal Canada. "This type of investment is certainly a powerful tool to tackle the biggest environmental issues and accelerate the ecological transition that is essential to create the Beauty that moves the world forward," she concluded.
"The Demeter team and we are delighted to have L'Oréal and renowned investors collaborate on the Circular Innovation Fund. The current context requires a radical redefinition in the way we extract, manufacture, consume and dispose of goods and materials. Innovation, combined with close collaboration between entrepreneurs, investors and industry, is more critical than ever to solving some of the most pressing challenges facing humanity. This is what the Circular Innovation Fund is all about," said Andrée-Lise Méthot, founder and managing partner of Cycle Capital.
For more information: circularinnovationfund.com