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As 2021 draws to a close, Closed Loop Partners' venture capital group-Closed Loop Ventures Group-reported that it has closed venture fund II backed by investors such as Microsoft and the Autodesk Foundation. An executive at Closed Loop Partners stated that the investment arm exceeded the fund's $50 million target, but did not disclose the specific amount.

"[The fund] was oversubscribed through our $50 million goal. This fact shows the direction of the industry and the needs of investors, as well as the needs of the broader macro environment, which recognizes that cyclicality is the future of the industry Part of it and we are all working together," said Danielle Joseph, managing director of Closed Loop Partners. 

Joseph said that with the closure of the fund, the group is turning its attention to investing in next-generation recycling companies and supporting their founders.

Closed Loop Ventures Group invests in seed and pre-seed companies focusing on the development of circular economy.

This is the same approach as Venture Fund I, which has 19 portfolio companies and represents the same industries Closed Loop Partners is seeking to fund with the second fund—plastics and packaging, food and agriculture, fashion and clothing, and transparency and logistics.

Algramo is a Chilean start-up company that aims to solve the "poverty tax" that some households pay for daily necessities (such as washing powder) by allowing people to reuse them. Thrilling is a resale startup that works with thrift and antique shops. Cooperating to expand its influence through the online market, The Renewal Workshop works with brands and retailers to give clothing a second life through resale, and they are all on the list of companies that received funding from the first venture fund. 

"Many of them are entering their Series A financing, and some of them are entering their Series B financing or subsequent rounds. We are very happy to grow with them," Joseph said.

In addition to monetary funds, Closed Loop Partners also uses the insight and expertise of its investors—and the challenges they face—to make better investment decisions.

"I think our investor portfolio is actually a unique combination of individual investors, family offices, and business promoters who, as traditional limited partners, invest directly in fund tools," Joseph said.

Donors to the fund include Autodesk's charity, the Autodesk Foundation. The foundation also donated to Venture Fund I.

"We are honored to be an early investor in the Closed Loop Ventures Group and are redoubled in helping to expand emerging design and manufacturing methods to make end-to-end loops possible," said Executive Director Joe Speicher. The Autodesk Foundation and Autodesk Sustainability Leaders said in a statement.

Another well-known funder is Microsoft.

"Our investment in Ventures Group's Fund II is a key part of our goal of zero waste in 2030, driven by innovators and start-ups that help achieve this goal," said Brandon Middaugh of the Microsoft Climate Innovation Fund, who is Closed investor. Loop Partners' fund, in a statement.

Fund II has invested in 10 companies. griin is a start-up company headquartered in Israel, focusing on on-demand coffee roasting with zero pollution, and Partsimony, whose goal is to establish a cognitive supply chain and improve the efficiency of hardware companies and manufacturers. 

There is also ucrop.it, which is an application-based platform whose goal is to help farmers who adopt various sustainability practices to obtain better prices from corporate customers. When farmers share their crop cycle information on the platform, potential customers can view this information in the form of a blockchain log, which helps them review farmers' sustainability practices and provide better payments. Dimpora develops a film for waterproof clothing that does not contain perfluorinated and polyfluorinated chemicals (PFCS) commonly found in winter equipment and is related to human health risks. The company has also received funding from a venture capital group. 

In 2022, the fund plans to make more investments (Joseph pointed out that companies interested in funds are always welcome to apply on the website), and hope to see more investments in companies focused on building a circular economy.

"What we want to see is that we are not the only specialized fund in this field, just like we are today, investing in these early-stage circular economy companies," Joseph said. "Invite a broader risk ecosystem to join us, independent of us, to truly accelerate the transition from this linear economy to a more circular economy."

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