Circular Economies Case Studies - Softmatter Ventures

JULY 2018
CIRCULAR ECONOMY CASE STUDIES AISHAH AVDIU / PG.1
Circular Economy
Case Studies
Prepared by Aishah Avdiu

Introduction
Waste to Energy
Case Study: Calera
Consumer Software
Case Study: Too Good To Go
Case Study: How Good
Biofabrication
Case Study: Modern Meadow
Case Study: Memphis Meats
Conclusion
Sources Cited
Appendix
3
4
6
8
10
11
12
Contents

Although the world is continuously evolving to reduce climate change, immense
challenges lie ahead. Amidst a volatile political system with tendencies
of moving backwards as opposed to forwards, this era calls for impactful
innovation. Collectively, we find ourselves in a time of rapid sustainable
development that has the potential to create a future of true coexistence
between humanity and the planet. Investors, businesses and governments
throughout the world are rapidly accepting that the transition to “low-emission,
climate-resilient growth” is both essential and profit-positive.[1]
One of the most impactful ways to deploy capital is to direct investment
toward disruptive technologies which reduce waste. In this white paper, we
explore case study startups in waste-to-energy, consumer software, and
bio-fabrication industries and their potential to continue the path toward total
sustainability.
Tsing Capital, a sustainable venture capital fund in China defines the
transformation of the sustainability landscape over the past decade as a
distinct three-phase evolution: Envirotech, Cleantech and now, Sustaintech.
During Envirotech, enterprises targeted policy-driven channels such as
environmental protection, which relies on rapid growth in order to reach
efficient economies of scale. The second stage, Cleantech, was characterized
by innovation, producing high value and CAPEX-efficient companies. The
third stage, Sustaintech, is demand driven, where disruptive innovation in both
technologies and business models are the key to commercial and sustainable
success. [2]
The companies profiled within this paper exemplify the characteristics of the
Sustaintech market, and highlight key areas for investment which are promising
prospects for venture capital entities, but more importantly, crucial to slowing
the degrading state of our environment.
Introduction
Next Section: Waste to Energy »

Waste to
Energy
Waste to Energy systems are infrastructures which turn a waste product into
either electrical energy or fuel in the form of a gas. There are several types of
Waste to Energy technologies, and their primary differentiating factor is what
sort of conversion they perform. Most prevalently, the waste source will be
a biomass waste (usually originating from agricultural compost), a municipal
solid waste (originating from household garbage), or from emissions. [3]
Historically, the Waste to Energy industry has kept their performance
statistics––such as jobs, energy, and GHG offset––fairly confidential.
Regardless, when compared with all other renewable energy technologies
(except nuclear), Waste to Energy systems consistently outperform in terms
of reliability, efficiency, scale, and net GHG emissions reductions. Energy
generated in a standard facility exceeds the potential of several dozen wind
turbines, and thousands of solar PV cells under consistent sun and wind
conditions.
A tremendous opportunity lies in the hidden gem of renewable infrastructure
that is Waste to Energy systems. In the near future, markets will see growing
research and investment across many industries to reduce emissions and
increase energy efficiency. As regulations continue to tighten and compliance
becomes essential, capturing emissions will soon become a commonplace
rather than an innovative anomaly. [4] [5]
A primary success within the waste to energy space is manure management
which converts animal waste into biofuel. The system effectively kills
pathogens through added oxygen and converts manure to dry fuel via
evaporation. The dry product is burned to generate energy through steam.
Livestock producers are starting to implement waste to energy systems to
turn animal waste management into an economic opportunity rather than an
environmental challenge. [6]
Beyond the most prevalent forms of waste-to-energy such as agricultural or
solid waste conversion systems, new creative applications of the phenomenon
are being developed. One of the most unique examples is Calera.
Case Study: Calera
This Californian start-up is making waves in the waste to energy space. They
have developed an innovative technology which extracts carbon dioxide from
industrial emissions and bubbles it through seawater to manufacture cement.
[7] The process models after nature itself, by imitating that used by coral,
which builds shells and reefs from the calcium and magnesium in seawater.
Section Continued »

Next Section: Consumer Software »
Calera’s technology remediates emissions from air pollution sources, and
greatly reduces emissions from the traditional cement production process.
Their first plant is in Monterey Bay area, in close proximity to a power plant
which is responsible for emitting 3.5 million tons of carbon dioxide each
year. The company’s potential business model is unusual: They will give
away cement to customers while charging polluters a fee for removing their
emissions. [7]
Calera exemplifies the concept of sustainable innovation which results in a
dynamic business model. As they strive to go to market with their cement
product, it is yet to be determined whether waste to energy cement can rival
traditional Portland cement in strength and durability.

Consumer
Software
In the recent past, the sharing economy has generated quite the buzz with
now-household names like Uber and Airbnb penetrating the mass market.
This industry is characterized by rapid development, and positive prospects
for fundraising. Notable drivers of the Sharing Economy industry stem from
resource scarcity and social change. The success of this industry is reliant on
consumer software which enable everyday users to access platforms which
optimize daily life while increasing lifestyle sustainability.
Beyond consumer software being instrumental to the sharing economy,
exciting software has emerged to increase efficiency and sustainability
for both businesses and consumers. These platforms, in the form of apps,
connect the consumer to the business, and offer options which decrease an
individual’s carbon or waste footprint while increasing convenience.
Case Study: Too Good To Go
Too Good To Go is one of Europe’s most impactful sustainability startups.
Based in Copenhagen, they give stores and restaurants a platform to sell their
surplus food to consumers. Active in eight European countries, the start-up
fights food waste along with their 3 million customers. During their two years in
operation, they’ve partnered with over 5,000 stores and saved the equivalent
of 2.5 million meals from becoming food waste.
The business model offers a dual incentive for their partner businesses:
increasing revenue through maximizing previously sunk inventory, as well
as new customer acquisition through presence on the app. Their concept is
not the first of its kind, however, they prove to other similar start-ups that the
concept is scalable and overcomes hindrances such as consumer perception.
Their expansion around major European countries validates the demand and
ethos for similar business models, and underscores the viability to invest in
similar concepts domestically. [8]
Case Study: How Good
How Good is an app with the mission of helping consumers make informed
and sustainable choices at the grocery store. Partnered with farmers and food
scientists, their proprietary algorithm scores products on 60 indicators of
sustainability. Their database contains more than 200,000 products, allowing
consumers to filter by the rankings of ‘good’, ‘great’, and ‘best’. In 2013, the best
rated products saw an average of 31% in increased sales, incentivizing further
partnerships with groceries nationwide.

Currently, their program includes grocers in over 25 states. How Good is free
in the app store, and also free of ads on the platform. An example of apps
pushing the landscape of consumer software toward sustainability, How Good
enables any consumer to make informed choices when shopping. [9]
Next Section: Biofabrication »

Biofabrication An industry defined by a fascinating intersection between design and science,
Biofabrication marries the brilliance of biology with the need for sustainable
innovation. Products of the future will be constructed using microorganisms,
reducing environmental impact while maintaining beauty and functionality.
Biofabrication harnesses organisms like bacteria, algae, mycelium, yeast, and
mammalian cells to cultivate consumer products, from fashion, to furniture,
or foods. [10]
The industry is one of the most infantile within the sustaintech revolution,
however in recent years rapid development is occurring. In Brooklyn, New
York, an annual exhibition has opened dedicated to emerging technologies in
the space: Biofabricate. Each Fall, the conference brings together scientists,
founders, investors, and researchers to open the conversation and discovery
within the sustainable biofabrication industry. Noteable technologies involve
engineering food-grade meats from singular tissue cells, growing textiles from
mycelium, and creating furniture and building materials using fungi.
Case Study: Modern Meadow
Leather production is a highly resource-intensive process which is entirely
reliant on the problematic livestock industry. Modern Meadow has found
a solution driven by biofabrication. Their scientists have created a unique
leather material made from collagen, a common protein in mammalian skin.
The bioleather material, called Zoa™ is engineered to satisfy structural and
aesthetic properties required in the competitive textile market.
Their process is sustainable and innovative, without compromising the need
for a high-quality, beautiful end product. Modern Meadow has raised over $40
million dollars in funding to grow and scale their synthetic biological leather
alternative, and bring it to market in 2019.
By creating a nearly identical alternative to animal-based leather, Modern
Meadow is positioned to completely disrupt the textile industry in the name of
a reduced carbon footprint. Steps toward reducing the ethical concerns and
ecological impact in the fast fashion industry remain one of the most crucial
areas of impact in our society. [11]
Case Study: Memphis Meats
Perhaps the most intriguing and controversial facet of the biofabrication
space is the rapid development of cellular agriculture. Cellular agriculture
is a blanket term which encompasses the process of growing various

types of foods within a lab, using singular cells as the basis for products like
hamburgers, fish fillets, chicken nuggets and more. Thus far, no synthetically
engineered products have reached the marketplace, but that will soon change.
Memphis Meats, a startup from San Francisco, aims to bring their cell-
cultured meatballs, sausages, and hot dogs to market within the next five
years. [12] Their process ensures the highest quality meat at every stage in the
production process, by nature of the fact that the meat is engineered “from
the cell up.” Memphis meats strives “to keep the benefits of conventional meat
while making our products healthier, more nutritious and safer,” eliminating
the bulk of the issues which make conventional meat production problematic
and inefficient. The most prevalent issues of traditional livestock farming like
high water usage, animal mistreatment, quality control inconsistencies, use of
antibiotics, and generally high inputs are eliminated or significantly reduced
by cellular-cultivated meats and fish. The sustainable payoff of a startup like
Memphis Meats is a product which greatly reduces waste and greenhouse
gas emissions while delivering something delicious and chemically identical
to traditional meat. With high-profile investors like Tyson, Bill Gates, and
Richard Branson, Memphis Meats is a trailblazer in the world of agricultural
biofabrication. [13]
Next Section: Conclusion »

Conclusion A promising extension of the sustainability industry’s revolution, Sustaintech
integrates intelligent technologies with innovative, non-traditional business
models. Extraordinary growth and opportunity lie within the Sustaintech
industry, awaiting continued early-mover funding to back these emerging
technologies.
As per Bloomberg New Energy Finance, global new investment in sustainability
was at a historical peak of $329 billion in 2015 and a CAGR of 18% since
2004––comprised of investment through venture capital and private equity
investment, government and corporate R&D grants, as well as asset finance––
indicating growth in a market that is unique in both its disruptive marvel and
sheer ecological necessity. [1] (Figure A)
The companies examined throughout this paper exemplify the need to
direct investment capital into areas capable of high-impact consumer
waste reduction, identified as: Waste-to-energy, consumer software, and
bio-fabrication channels. With the potential to change the course of human
society, these innovations pave the way toward an optimistic future.
Next Section: Sources Cited »

Sources Cited Frankfurt School-UNEP Centre/BNE, 2016. Bloomberg New Energy Finance, Global Trends
in Renewable Energy Investment 2016, (Accessed July 12th 2018.)
Qi Lu, Jing Wan, Jing Ge, Djavan De Clercq of Tsing Capital, The Road to Sustainability, 2017.
(Accessed June 20th 2018.)
Nate Seltenrich, Emerging Waste-to-Energy Technologies: Solid Waste Solution or Dead
End? Environmental Health Perspectives, Vol. 124, 2016. (Accessed July 8th, 2018.)
John F. Williams, John C. Parker, Measuring the Sustainable Return On Investment SROI Of
Waste To Energy. May 11, 2010. (Accessed June 25, 2018.)
BOURJI A, BARNHART J, WINNINGHAM J, WINSTEAD A. Convert waste heat into eco-
friendly energy. Hydrocarbon Processing. December 2010. (Accessed June 22, 2018.)
First Research, Trends within the animal production industry as of 2018. June 6th, 2018.
(Accessed June 22, 2018.)
Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami, Why Sustainability is now the key
driver of innovation. Harvard Business Review, September 2009, pp 57-64. (Accessed July
6th 2018.)
Too Good to Go, About Us, Site, 2018. Accessed (July 5th, 2018.)
https://toogoodtogo.co.uk/about-us
How Good, About Us, Site, 2018. (Accessed July 6th 2018.)
https://howgood.com
“Biofabricate Summit.” Biofabricate, 2018, (Accessed July 5th 2018.)
www.biofabricate.co
Glynis Sweeny, Fast Fashion is the Second Dirtiest Industry in the World next to Big Oil,
EcoWatch, Aug. 17th, 2015. (Accessed July 9th, 2018.)
Elizabeth Devitt, Artificial chicken grown from cells gets a taste test—but who will regulate
it? Science Magazine, March 15th 2017. (Accessed July 12th 2018.)
Memphis Meats, About Us, Site, 2018. (Accessed July 12th 2018.)
http://www.memphismeats.com/home/#aboutus
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Next Section: Appendix »

Appendix [1] Frankfurt School-UNEP Centre/BNE, 2016. Bloomberg New Energy Finance, Global
Trends in Renewable Energy Investment 2016, Accessed July 12th 2018.
Accessed through:
[2] Qi Lu, Jing Wan, Jing Ge, Djavan De Clercq of Tsing Capital, The Road to
Sustainability, 2017. Accessed June 20th 2018.)
A.
End •

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