Information on the Target

traceless materials GmbH, founded in 2020 by Dr. Anne Lamp and Johanna Baare, is an innovative bioeconomy start-up based in Hamburg, Germany. The company's mission is to contribute to a regenerative, climate-friendly economy while tackling the pervasive issue of plastic pollution. traceless specializes in processing agricultural plant side-streams to create fully biodegradable, home compostable, and plastic-free biomaterials suitable for various applications, particularly in the packaging industry.

With a commitment to sustainability, traceless is scaling its innovative technology from pilot to industrial levels to harness the ecological potential of these biomaterials and reduce reliance on traditional plastics. This scaling is viewed as crucial for increasing the company's production capacity and market presence.

Industry Overview in Germany

The bio-based materials industry in Germany is witnessing significant growth, driven by the increasing demand for sustainable solutions across multiple sectors. As environmental concerns rise, industries are looking to reduce their carbon footprints and adopt eco-friendly practices. The German government has also implemented various initiatives aimed at promoting sustainability, thereby creating a favorable environment for bioeconomy enterprises.

Germany is a leader in the European Union’s transition towards a circular economy, with strong support for innovations in biodegradable materials and sustainable practices. This emphasis on environmental sustainability reflects in national policies that are geared towards fostering innovations in renewable resources and waste reduction, effectively positioning the bioeconomy as a critical contributor to economic growth.

The market for biodegradable materials is further bolstered by advancements in green technologies that enhance production efficiency and material performance. Consequently, the packaging sector, which is a major contributor to plastic waste, is increasingly gravitating towards sustainable alternatives facilitated by innovative companies like traceless.

As consumers become more environmentally conscious, the demand for sustainable packaging solutions is expected to continue rising. This trend is creating new opportunities for companies that can deliver innovative products that meet environmental standards while offering functionality and cost-effectiveness.

The Rationale Behind the Deal

The recent investment round, led by United Bankers’ UB Forest Industry Green Growth Fund I LP (UB FIGG), which raised EUR 36.6 million, underscores the growing interest in sustainable technologies that combat climate change. By supporting traceless, UB FIGG aims to foster innovations that not only provide sustainable material alternatives but also align with its mission to enhance resource efficiency in the forest and bio-based industries.

This partnership is seen as a strategic move towards scaling up production and widening the market reach of traceless, while simultaneously contributing positively to environmental challenges such as plastic pollution and climate change.

Information About the Investor

UB FIGG is a private equity fund dedicated to investing in sustainable practices within the plastic and bio-based materials sector. Commencing its operations in 2023, the fund aims to mobilize over EUR 300 million in investments, targeting companies that prioritize sustainable practices and the efficient use of natural resources. Through its investments, UB FIGG seeks to support innovations that can provide viable alternatives to traditional fossil-based materials.

As a signatory of the Operating Principles for Impact Management, UB FIGG emphasizes accountability and transparency in assessing the environmental and climate impact of its investments. The fund’s commitment to sustainability aligns with the broader trends in the investment community, where responsible investment practices are becoming increasingly important.

View of Dealert

The investment by UB FIGG in traceless materials represents a strategic alignment with current market trends advocating for environmentally friendly solutions. The growing market for bio-based materials, particularly in the packaging sector, indicates a promising future for traceless as demand for sustainable options continues to soar. This deal is a timely opportunity for UB FIGG to capitalize on the expanding market for biodegradable materials.

From an investment perspective, traceless is well-positioned to benefit from increasing consumer preferences for sustainable products. The scalability of its technology further enhances the potential for long-term growth and profitability, making it a compelling opportunity within the bioeconomy sector.

However, investors must also factor in the competitive landscape and potential challenges in transitioning from pilot production to industrial scale. Achieving the goals of sustainability while maintaining economic feasibility will be essential for traceless to realize its mission and attract continuous investment.

Overall, this investment is likely to yield positive returns, not only in financial terms but also in terms of societal impact, supporting industry shifts towards sustainability and demonstrating the viability of innovative solutions in addressing environmental challenges.

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