Circ raises $30m+ with backing from apparel and tech industry giants
Circular fashion company Circ has secured over $30 million in Series B funding.
This was led by the Bill Gates founded Breakthrough Energy Ventures with additional investment from new partners, including Inditex, Milliken & Company, and Lansdowne Partners.
Previous investors also participating included 8090 Partners, Alante Capital, Card Sound Capital, and Marubeni
Circ has developed a technology system that returns clothes to the raw materials from which they were made. It has raised north of $45 in total to date.
"Combining best in class financial investors, led by Breakthrough Energy Ventures with investment from fashion market leader Inditex, is a springboard to rapid, large scale manufacturing success," says Peter Majeranowski, CEO at Circ.
"With this investment round, we've secured suppliers, purchasers, and major financial stakeholders to establish a much cleaner fashion future.”
“We already have all the clothing we need to make all the clothing we'll ever need. Now, alongside our partners, we can make recycled garments accessible to every shopper."
The latest round of funding will help the company complete its engineering work for larger scale facilities while continuing commercial launches with key partners.
Funds will also be used to add core team members in engineering, R&D, management, and business development.
"The textiles industry is estimated to account for over 1 Gt of CO2-equivalent emissions per year as of 2016, the largest portion of which comes from raw materials," says Carmichael Roberts at Breakthrough Energy Ventures.
"BEV was founded to drive innovative solutions, like the technology Circ has created, that will reduce and eliminate greenhouse emissions as quickly as possible.”
“Recycling can reduce emissions associated with deriving textile raw materials, however, most textiles are blends, which are difficult to separate and recycle.”
“We see Circ's ability to recycle blended textiles as a significant breakthrough that can help us to achieve our global carbon goals by reducing the carbon intensity of textile raw materials."
“We are very excited to announce Circ as our first venture investment in a clean technology company," says Óscar García Maceiras, Chief Executive Officer at Inditex.
"In partnership with them, we are committed to promoting the transformation of the entire fashion industry. We look forward to contributing our knowledge and corporate capabilities to Circ's rapid success and achievement of industrial scale.”
Circ’s recycling process and other technological innovations could enable a fashion industry shift towards circular economy models like reducing waste and reuse of resources rather than traditional linear economic systems of take-make-dispose.
E-commerce plays a pivotal role in this transformation by providing easy access to recycled products for sale and distribution, fostering circularity throughout the supply chain. Utilising eCommerce website developers, brands can establish an online platform to showcase recycled fashion products and educate consumers on sustainable fashion practices.
E-commerce also creates more transparency through supply chains. Tracking materials and products gives consumers confidence in the sustainability claims made by brands, holding companies accountable for their actions, and encouraging positive changes within the industry.
