Evoralis Secures £2.5M

Cambridge Spinout Evoralis Secures £2.5M to Solve Enzymatic Recycling for Textiles

Evoralis is developing innovative enzymes that can break down even the toughest mixed and blended fibers, paving the way for a truly circular economy in textiles.

LONDON, 17 SEPTEMBER 2024 – Evoralis, a pioneering company specializing in the discovery and development of plastic-depolymerizing enzymes, has raised £2.5M in a Seed funding round. This investment marks a significant milestone in Evoralis' mission to transform the recycling landscape for textiles and other plastics. The round was led by LIFTT S.p.A with co-investment from Cambridge Enterprise Ventures and Parkwalk Advisors, Backbone Ventures, circular economy-focused investors Circular Plastics Accelerator and Archipelago Ventures, as well as angel investors. CPI has successfully converted their convertible loan into equity, acquiring shares in the company. 

Evoralis, a spin-out from the University of Cambridge Hollfelder Lab, harnesses a unique ultrahigh-throughput screening platform based on microfluidics to discover and refine enzymes capable of breaking down complex plastics into their constituent building blocks. This platform, which accelerates enzyme screening by up to 1,000 times compared to traditional methods, is a game-changer in the pursuit of an economically viable circular economy for textiles and plastics.

The Demand and the Solution

The textile industry is at a critical juncture, with global fiber production nearly doubling over the past two decades to 109 million tonnes in 2023 much of which is not, and cannot be, recycled. =The challenge of recycling mixed and blended fibers is immediate and pressing; Europe alone generates approximately 6 million tonnes of post-consumer textile waste annually, with 60% of clothing sold today containing fossil-based plastic which cannot easily be recovered using existing methods of recycling.

Evoralis is addressing this challenge with its groundbreaking enzymatic technology, which will offer a viable solution for recycling over 80% of textiles, including those composed of mixed and blended fibers containing plastic. Evoralis’ revolutionary approach will enable the separation of different materials within textiles, and has the potential to unlock a USD 560 billion economic opportunity. 

The company's platform has already attracted attention from major fashion retailers, who have engaged Evoralis to develop enzymes specifically for recycling nylon and polyurethane – two of the most difficult synthetic polymers to recycle.

Quotes

Daniel Kaute, CEO of Evoralis said: "We are thrilled to have the support of LIFTT and our other investors as we take this crucial step forward in transforming textile recycling. This funding will enable us to further develop our enzyme technology, making it possible to recycle textiles and plastics that were previously deemed unrecyclable. Our vision is to create a world where waste is a resource, and this investment brings us closer to making that vision a reality."

Edoardo Bianchi from LIFTT said: "Leading this investment round reflects our confidence in Evoralis' groundbreaking technology and its potential to revolutionize textile recycling. At LIFTT, we are committed to supporting innovative solutions that address critical environmental challenges, and Evoralis’ approach to enzymatic recycling is a game-changer for the circular economy."

Philippe Bernet, partner at Backbone Ventures, remarked, “While we typically focus on the DACH region, we made an exception for this UK-based company due to the exceptional strength and track record of the team, which was highly recommended to us by our trusted Venture Partner Jürgen Eck. He will be joining the Board of Directors as independent director and Chair of Evoralis. The groundbreaking technology they’ve developed within the Cambridge University, along with the commercial interest they've already generated, truly impressed us.”

Claire Shrewsbury, Director of Insights and Innovations at WRAP, “The use of enzymes in chemical recycling is a huge moment in the history of textile-to-textile recycling. It will transform the opportunities for difficult to recycle fractions such as mixed fibre blends. Clothing and textiles leave a huge mark on the environment and it’s imperative we recover these valuable resources. In the UK alone, around 1,453,000 tonnes of post-consumer textiles were produced in 2022. Over half (759,000 tonnes) was sent to landfill or incineration at end of life – lost forever. The importance of investing in new technologies to recapture and recycle this valuable material into recycled content to displace the use of virgin materials in the textiles industry cannot be emphasised strongly enough.”

Fatima Kranc, Investment Manager at Cambridge Enterprise Ventures, said “We are delighted to be part of Evoralis' seed round investment. This aligns with our ongoing commitment to supporting University of Cambridge founders in bringing innovative solutions to market. Evoralis' work with enzymes for bio-recycling textiles is an exciting development and adding them to our sustainability portfolio is an important leap forward. As an Investment Director on the Board, I look forward to the journey ahead with the Evoralis team.”

– ENDS –

Evoralis is a pioneering enzyme specialist in plastic recycling, focused on developing innovative solutions for breaking down complex plastic blends, particularly within the textile industry. Leveraging a unique ultrahigh-throughput screening platform in combination with bioinformatics, Evoralis creates commercially viable enzymes that enable the recycling of challenging plastics such as polyester (PET), nylon (PA), and polyurethane (PUR). Founded as a spin-out from the University of Cambridge’s Hollfelder Lab, Evoralis is poised to revolutionize textile recycling and contribute to a truly circular economy.

For more information, visit Evoralis or contact: info@evoralis.com

LIFTT is an Italian Venture Capital chaired by the scientist-entrepreneur Stefano Buono. Operating in every industry with a focus on deep-tech, to date it has raised €104M and completed 51 investments in innovative start-ups. While generating value for its shareholders, LIFTT supports the creation of businesses, development, employment, and economic growth, through the implementation of an ethical and transparent governance model. 

Backbone Ventures is an early-stage venture capital firm based in Zurich and Frankfurt am Main. Founded in 2018, Backbone has a track record of 41 investments with already two successful exits so far. With a pioneering investment- and a strong ecosystem approach, Backbone’s mission is to achieve a positive impact for the next generation by supporting underprivileged, outstanding entrepreneurs to reach new levels of success and to become the trusted partner for founders and investors in pre-seed venture capital in Europe. Learn more at backbone.vc.

Circular Plastics Accelerator (registered as Circular Plastics – Accelerating Growth LLP) is a Limited Liability Partnership (LLP) wholly owned by Accelerating Growth Fund Ltd and supported by Archipelago Ventures Ltd. The Accelerating Growth Fund Ltd is a wholly owned subsidiary of WRAP, established to hold their investments in circular economy businesses and funds. WRAP is a global environmental NGO working around the world to tackle the causes of the climate crisis and give the planet a sustainable future. Its vision is a thriving world in which climate change is no longer a problem and it brings together and work with governments, businesses, and individuals to ensure that the world’s natural resources are used more sustainably. The organisation has an office in Washington DC for WRAP in the Americas work, encompassing projects from Chile to Canada. 

For more information on WRAP visit: WRAP - The Climate Crisis: Act Now

Parkwalk Advisors -  Parkwalk is the largest growth EIS fund manager, backing world-changing technologies emerging from the UK’s leading universities and research institutions. With £500m of assets under management, it has invested in over 180 companies across its award-winning Parkwalk Opportunities and Knowledge Intensive EIS Funds, as well as the enterprise and innovation funds Parkwalk manages for the Universities of Cambridge, Oxford, Bristol and Imperial College. 

Parkwalk invests in businesses creating solutions to real-world challenges, with IP-protected innovations, across a range of sectors including life sciences, AI, quantum computing, advanced materials, genomics, cleantech, future of mobility, medtech and big data. 

Cambridge Enterprise Ventures is the investment arm of the University of Cambridge. We support a diverse range of entrepreneurs and founders by investing University of Cambridge capital into high potential, high impact early-stage businesses. 

As venture investors, we help founders by building high value-add syndicated rounds, providing board experience and leveraging long standing connections to the Cambridge ecosystem and beyond. 

We establish and accelerate strong, purposeful and successful University spin-outs, invested in from the University, to address global challenges and support the generation of positive impact from the ideas, academics and entrepreneurs of Cambridge.

Cambridge Enterprise Ventures invests University of Cambridge capital from the University Venture Fund and the University Discovery Fund. 

During the lifetime of the fund, we have invested over £42 million, with portfolio companies going on to raise £3 billion in follow-on funding. To date, over 150 companies have been invested in across a wide range of sectors. 

Since 1995, we have managed investments made by the University Venture Fund, an evergreen fund investing ringfenced University capital, into new companies. In 2020 the University invested a further £30 million into the University Venture Fund, with £10 million committed to sustainability investments. 

The University Discovery Fund was created in 2008 as a donated fund, to invest in science with clear commercial potential. The original raise has since returned £8.6 million to invest in the next generation of innovation.

Additionally, the University of Cambridge Enterprise Fund (UCEF) was launched in 2012 as a co-investment fund between Parkwalk Advisors and Cambridge Enterprise. The first of its kind, this leading early-stage university Enterprise Investment Scheme offers offer alumni and the wider investment ecosystem opportunities to invest into scientific and technological companies from the University.  

CPI Enterprises is the venture capital and investor engagement arm of CPI, launched in 2019 to stimulate impactful investment into early-stage deep tech companies. As part of the Centre for Process Innovation (CPI), CPI Enterprises leverages CPI's world-class technical expertise, facilities, and network to help innovators turn their ideas into commercial realities. The firm is unique in that it not only supports companies with technical expertise but also directly invests in them, making it a vital player in bridging the "valley of death" for early-stage deep tech ventures.

CPI Enterprises has made over 12 investments to date, with one successful exit, and its portfolio spans multiple sectors. The organization is driven by a passion for innovation and a commitment to supporting companies that tackle some of the biggest challenges in society, such as sustainability and healthcare.

This evolution represents the next stage in CPI’s mission to support innovation and drive growth in the UK's economy through deep tech investments.