Information on the Target

ChainCraft, a pioneering Dutch scale-up, is at the forefront of circular chemical production, leveraging innovative fermentation technology to create sustainable chemicals from food waste. In a recent funding round, ChainCraft successfully raised €11 million to support the development of its flagship industrial plant and enhance its existing pilot operations in Amsterdam.

The company has positioned itself as a viable alternative to fossil and palm oil-based chemicals, addressing the increasing demand for environmentally friendly solutions in various industries. Through strategic partnerships, such as the recent long-term agreement with Agrifirm, ChainCraft is solidifying its role in the market, with more agreements anticipated in the near future to cater to the growing need for sustainable chemical alternatives.

Industry Overview in the Netherlands

The chemical industry is a major contributor to global greenhouse gas emissions, accounting for 14% of the total. It heavily relies on fossil fuels and palm oils, which are utilized by petrochemical companies to meet the rising demand for fatty acids across multiple sectors, including agri-food, chemical, and materials. As public awareness of environmental issues grows, industries are facing increasing pressure to adopt sustainable practices.

In the Netherlands, the circular economy is gaining traction, driven by both regulatory changes and market dynamics, which prioritize sustainability. Companies are actively seeking to reduce their reliance on traditional, resource-intensive processes in favor of innovative, environmentally friendly alternatives. This transition is essential not only for compliance with national and international regulations but also for enhancing competitiveness in a rapidly evolving marketplace.

Furthermore, the Netherlands has a strong focus on agricultural and food waste management, producing over 200 million tonnes of food waste annually. This vast resource presents significant opportunities for the circular chemical industry to innovate and thrive by transforming food waste into valuable products, like medium-chain fatty acids (MCFA), using sustainable methods. As more players recognize the importance of sustainability, the demand for companies like ChainCraft is expected to rise.

The Rationale Behind the Deal

Investors are increasingly drawn to ChainCraft due to its innovative approach and the potential for significant positive environmental impact. The recent €11 million funding round, led by Convent Capital along with existing investors such as Shift Invest, Horizon 3, and PDENH, highlights the collective belief in ChainCraft's capacity to drive transformative change in the chemical industry.

With the industry's shift towards sustainability becoming more pronounced, ChainCraft's ability to convert food waste into circular chemicals positions it uniquely in the market. The funding will enable the company to scale its production capabilities and expand its outreach, fulfilling the rising demand for environmentally sustainable products in the chemical sector.

Information About the Investor

Convent Capital, established in 2011, is an independent investment firm in the Netherlands. It aims to support innovative and sustainable companies, focusing on growth capital for agri-food businesses through its Agri Food Growth Fund. The fund emphasizes generating a positive impact with every investment and supports the transition from a linear to a circular economy.

With a strong commitment to sustainability, Convent Capital actively seeks opportunities that align with its long-term investment philosophy while providing capital and strategic guidance. The firm’s extensive experience in scaling organic waste recycling operations is expected to bolster ChainCraft’s growth trajectory.

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This investment in ChainCraft presents a promising opportunity within the circular economy sector. The growing demand for sustainable alternatives in the chemical industry aligns perfectly with ChainCraft's innovative offerings derived from food waste, which are not only environmentally friendly but also commercially viable.

The backing from established investors indicates confidence in ChainCraft’s business model and the company's potential for significant growth. Additionally, strategic partnerships with industry leaders like Agrifirm enhance its market credibility and may lead to further lucrative contracts.

Overall, the funding round is a pivotal step towards ChainCraft's goal of revolutionizing the chemical industry by providing high-quality, circular solutions. This could mark the beginning of a more sustainable pathway for chemical production, benefiting both the environment and investors over the long term.

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