Closed Loop Partners ventures group secures more than $50M in funding

New York-based Closed Loop Partners’ venture capital group—the Closed Loop Ventures Group—has closed its second venture capital fund, Closed Loop Venture Fund II. Funding for Closed Loop Venture Fund II has surpassed the investment firm’s initial $50 million target to scale circular economy solutions across the plastics and packaging, fashion, food and agriculture and supply chain technology sectors.

The investment firm says its Closed Loop Venture Fund II follows its Closed Loop Venture Fund I. The strategy for both funds capitalizes on the need to shift away from linear and extractive supply chains and toward waste-free circular systems. Closed Loop Partners reports that investors in the ventures fund include a broad range of investors, including multinational corporations like Microsoft and GS Group, foundations such as the Autodesk Foundation and single and multifamily offices across the United States, Asia and Israel.

“Our investment in the Venture Group’s Fund II is a key part of our efforts toward our 2030 zero waste goals, driven by the innovators and emerging companies that help make this possible,” says Brandon Middaugh of Microsoft’s Climate Innovation Fund, an investor in Closed Loop Partners’ funds.

Taehong Huh, managing director of GS Futures, corporate venture arm of GS Group Korea, adds, “Venture capital plays a key role in accelerating the circular economy, seeding the next generation of solutions to overcome legacy take-make-waste systems, encourage innovation and help transformative companies scale. The Closed Loop Ventures Group is blazing a trail for some of the most innovative circular solutions in the market today, and we are proud to be investors in the Closed Loop Venture Fund II—supporting companies that advance the circular shift of our economic system.”

Led by Danielle Joseph, managing director at Closed Loop Partners, the firm’s Closed Loop Ventures Group highlights how builder capital with a hands-on, active approach to building the circular economy is something entrepreneurs are seeking. She says, “The successful raise of Closed Loop Partners’ second venture fund signals the increasing understanding that circular supply chains represent the future of industry and materials. We are seeing more founders building businesses in the circular economy and a growing need for early-stage capital.”

According to Closed Loop Partners, the company’s venture capital team plans to continue to develop its goals for where it wants to see additional investment activity, including markets that are misunderstood in traditional venture capital investing, such as biopolymers as plastic alternatives and chemical recycling technologies.