Today, paper cups are still the most commonly used vessel for spontaneous coffee and beverage runs. Where possible, we must ensure the value embodied in paper cups—specifically the high-quality fiber—is recovered, rather than wasted in the landfill.

Since 2018, the NextGen Consortium, managed by the Closed Loop Partners Center for the Circular Economy, has worked to increase the circularity of foodservice packaging, with a focus on cups––from single-use fiber and plastic cups to reusable cups. The Consortium has worked with stakeholders across the paper cup recovery value chain—paper mills, materials recovery facilities (MRFs), brands, consumers and local communities, as well as industry groups including the Foodservice Packaging Institute (FPI)—to test cup recovery, and scale stronger infrastructure and end markets for paper cup recycling.

Scaling paper cup recovery is hinged on creating solutions that work for different locations. Each city and facility is distinct in their needs, opportunities and challenges, and solutions must be tailored to each context. End markets must exist to strengthen the business case for materials recovery for paper mills and MRFs.

With paper cups now included in Recycled Materials Association’s materials specifications list, momentum is accelerating for cup acceptance at different facilities across the U.S.

Circular Services, the largest private recycling company in the U.S., owns and operates the Austin, Texas, MRF which has been among the facilities that have moved the needle on cup acceptance in the U.S.

To learn more about why the Austin MRF made the decision to accept cups, and the work needed to further scale acceptance in more locations across the U.S., we went straight to the source.

Joaquin Mariel, Chief Commercial Officer at Circular Services, interviewed by Daniel Liswood, Senior Project Director of the NextGen Consortium at Closed Loop Partners’ Center for the Circular Economy:

Dan Liswood: To get us started, can you share more about Circular Services, and why paper cups are a material of interest to your company?

Joaquin Mariel: Circular Services is one of the largest privately held recycling and circular economy services providers in the United States. We are a commodities company––we don’t own landfills or manage waste. Our focus is on recovering materials like paper, plastic, glass and metal because we believe these are not waste, but valuable commodities that should be kept in circulation, not buried. Recovering and selling these materials is not only possible, it’s profitable.

The fiber in paper cups and other polycoated paper items is a valuable commodity. We’re always looking to expand the list of materials we can recover, and any opportunity to divert more from landfill is worth exploring.

DL: After many years of work to advance increased cup recovery across the U.S., we are very excited about the cup acceptance milestone in the City of Austin! Can you share more about what exactly is now accepted at Circular Services’ Austin MRF?

JM: Our MRF in Austin, TX is now accepting polycoated paper items—typically used as food and beverage containers. This includes paper cups (hot and cold), food and beverage cartons, paper plates and paper to-go containers. These items should be recycled like other containers: empty of food or liquid and with lids on.

Further, our partnership with the City of Austin is an additional motivator to expand the accepted materials list. Austin has focused on aggressive zero-waste objectives for several years, so we are mission-aligned. This helped streamline contract updates and community engagement efforts once we were ready to process polycoated paper.

DL: Before we dive into what made this possible, can you share more about why cups and cartons could not be accepted before?

JM: For a material to be accepted at our MRFs, we must have the capability to effectively sort it, either into its own stream or an existing commodity stream, and there must be reliable end-markets that purchase, process and reuse the material. If the material is a new commodity, there also has to be sufficient volume to justify the addition of a dedicated sortation system. In Austin, we did not have dedicated sortation to separate cups and cartons at our MRF and there hadn’t been consistent end markets for polycoated paper.

We’re fortunate that there is increasing focus on end market development––and thanks to generous grant support from the Foodservice Packaging Institute, the Carton Council of North America, and the NextGen Consortium, we’ve now installed the equipment needed to sort and bale these items for sale.

DL: How have broader conditions changed to support cup acceptance at your facility? What needs to be true for cup acceptance to continue growing?

JM: Several conditions have supported cup acceptance at our facility. Grants for sorting technology have enabled us to adapt our processes, and the development of more reliable end markets provides confidence that recovered cups have a sustainable outlet. Collaboration across the value chain has also been critical, ensuring all perspectives are considered in building a system that works.

For cup acceptance to continue growing, we’ll need to see continued investment in sorting capabilities, strong and stable end markets, and ongoing collaboration among stakeholders to align solutions across the system.

DL: Does accepting cups at the Austin facility change your perspective on cup recycling in other markets?

JM: Accepting cups at our Austin facility doesn’t necessarily change our perspective, but it does serve as a valuable proof point. It shows what conditions need to align—sufficient volume, the right infrastructure and strong end markets—for cup recycling to be successful.

Recycling is inherently regional, since material composition and market access vary widely. What we’re learning in Austin will help us identify where similar conditions exist in other markets—or highlight where gaps still need to be addressed. Any opportunity to divert more material from landfill is a win, and we’re always working to make more of those opportunities possible.

The Break Up With Single-Use Bags campaign deploys messages in stores and in communities across four southern California counties to remind people to bring their own reusable bag rather than relying on paper or plastic single-use bags.

Photo Credit: Nick Pizzolato

Since its launch, our team has visited hundreds of stores across Southern California, meeting with our retail partners and store teams, and seeing how the campaign is coming to life.

From big retailers to neighborhood shops, we’ve heard the response: customers, retailers and communities welcome a little help in making changes that reduce waste and save money. Read about what we’ve learned so far!

Who is participating in the campaign?

Over the last few months, we worked with retailers big and small to bring this bag reduction and reuse campaign into over 1,300 stores across the Inland Empire, Orange County and San Diego County. Teams were out in the field for weeks, dropping off free signage and talking with store staff. We also connected more than 300 stakeholders, from city governments to community nonprofits, to strengthen a local effort that will reach millions of people.

What does the campaign look like on the ground?

The campaign isn’t limited to just stores. Messaging appears at home, in the community, in the parking lot, and at checkout. In stores, it’s about giving people simple reminders and the confidence to choose what works best for them, bringing a bag or skipping one altogether. Those little nudges add up, turning good intentions into everyday habits. We’ve found that to be true in Beyond the Bag’s past in-market tests in Denver and Tucson, which resulted in up to 9.5 million fewer bags used across those two test markets.

Photo Credit: Nick Pizzolato

What are we hearing so far?

Customers and employees appreciate the support, as California prepares to phase out plastic bags effective January 1, 2026. Many pointed out that the “reusable” bags currently provided by stores don’t always end up being reused. At the same time, customers don’t want to return to the single-use bags of the past and are apprehensive about relying on paper bags, which they consider less durable.

“They’re going away completely? I really don’t like paper bags so I’ll probably start just bringing my own, then.” – Customer in Santee, CA (San Diego County)

Photo Credit: Nick Pizzolato

But shoppers have built routines around their bag use, and breaking those habits takes support. What we are hearing customers ask for are practical options and simple reminders that make it easier to build new habits that move beyond flawed single-use bags. Retailers value the campaign as a way to mitigate challenges with the state’s transition to paper bags while helping customers make choices that work better for them.

“I recently stopped taking plastic bags because I found myself never reusing them, but it can be hard to remember your bag all the time. Signs like these are helpful, I’d love to see them everywhere.” – Customer in Irvine, CA (Orange County)

Why a break-up?

We knew from the start that if we were going to ask customers to change a habit, the message needed to stand out, and ideally, make them smile. The break-up theme grew out of consumer testing in Southern California and landed on the right balance of lighthearted, relatable, memorable and actionable.

It also gives customers choice, whether that means bringing a trusted reusable or skipping a bag altogether, while helping them move beyond the flawed and costly single-use options of the past. The campaign aims to support new habits in a way that feels less like a lecture and more like a wink.

What’s next?

The good news is that there is no definitive end to the campaign––it’s not meant to be a short-term fix. Rather, it is meant to be a tool toward a long-term shift, because we know that sustained change and impact happens over time.

Retailers can join anytime and roll out signage and messaging at their own pace, using free open-source assets, social media content, and step-by-step implementation guides. Smaller stores can even receive pre-printed signage at no cost.

By participating alongside nearly 1,300 other stores, retailers benefit from the higher impact of joint action, and reduce the risks of starting a new program alone. By proactively supporting their customers through this shift, retailers can also mitigate the operational and cost impacts of the state’s transition to paper bags.

The work doesn’t stop here. We’re collecting and analyzing on-the-ground data to understand the full impact of these interventions. The more we learn, the more effective we can be, not just in California, but anywhere retailers and communities want to reduce single-use waste.

One of the most important design decisions for reuse is selecting the right material. It’s also one of the most complex. 

While it would be easier to dictate one material for all reuse systems, the reality is that there is no one-size-fits-all solution. Different materials bring different advantages—and different challenges. Each has its merits for diverse situations and locations––from durability to recyclability, customer experience and cost. The variables are many, and the tradeoffs must be considered to yield the best results.  

In our work to bring reuse to market, we evaluate each material based on how well it fits into a given system: How often will it be returned? How will it be washed and stored? What will the customer do with it after use? Can it be recovered at end-of-life? 

Operational logistics, return rates and customer behavior all play a role in deciding which material is most appropriate. For example, where return rates are lower, lightweight materials with a lower environmental breakeven point are more effective. Where return rates are high, more durable materials will likely have a more positive long-term impact—even if they cost more upfront. 

To illustrate the complex interplay between materials and reuse systems, we explore the tradeoffs of the three most common materials for reusable packaging today: 1) plastic, 2) metal, and 3) glass and ceramic.  

PLASTIC: LIGHTER WEIGHT, LOWER CARBON IMPACT

Plastics for reusable foodservice applications can range from lower-stiffness materials like HDPE or PP, to more rigid resins like PET. 

The Pros 

One of plastic’s key advantages is its light weight. In fact, advances in manufacturing now allow reusable packaging to be lighter without compromising performance. For example, some expanded PP designs feature a lightweight foamed core sandwiched between two solid skin layers, adding insulating air pockets while reducing material use and maintaining durability. Plastics can also withstand being tossed carelessly into a return bin, while stainless steel may dent and glass or ceramic may break. Having a lighter weight per packaging unit translates into a lower purchase cost and smaller manufacturing carbon footprint compared to metal, glass and ceramic.  

In addition to the lower carbon footprint of producing lighter weight materials, the transportation footprint and cost of lighter materials is also comparatively lower. Today, plastic still offers the fastest path to environmental breakeven point for reuse, which is especially important for systems with low or unpredictable return rates. 

Plastic packaging can also be molded into different shapes and colors, increasing brand differentiation and consumer appeal. Plastics are generally perceived as less premium than other durable materials––but that is not necessarily a drawback, in the case of reuse. The lower perceived value may discourage consumers from keeping the packaging forever, supporting higher return rates for returnable packaging models. However, clear communication will be required to ensure customers don’t mistake reusable packaging for single use. When plastic reusable packaging needs to be decommissioned, there is a clear pathway to ensure that these materials don’t end up in landfill. These plastics are accepted in curbside recycling in most cities, and there are strong end markets to keep recycled PET, HDPE and PP in circulation in the U.S. 

The Cons 

Plastic comes with messaging challenges. It can be confusing to “eliminate single-use plastics” and then replace it with another plastic item. Plastic also doesn’t tolerate heat and exposure to acidic foods as well as other materials. It may also stain or retain odors from certain foods, requiring earlier decommissioning. 

Human health is also a concern with plastics. Raw material extraction, processing and manufacturing can create health concerns for workers and communities. Some consumers are starting to think more about the potential health impacts of using plastics, especially for food and beverage. While a scratch in stainless steel is typically only an aesthetic issue, a scratch in a rigid plastic product can be both an aesthetic and food hygiene issue. One concern is the consumption of microplastics, which have been found in tap water, beer, sea salt and tea. Another concern is chemical leaching from additives used to enhance plastic performance. Food-grade plastics used in packaging and foodservice applications undergo rigorous FDA testing and are approved by regulators as safe for their intended use.  

In our study of consumer perceptions of different reusable hot cups, consumers expressed low interest in trying reusable clear plastic cups for hot coffee or tea, and many reported they would throw clear cups in the trash or recycling instead of returning them. Recycled plastic, however, received high interest for trial and return, and consumers showed relatively low concerns related to leaching. 

In summary, plastic can play a critical role in the transition from early-stage activations to a scaled reuse economy. For programs with high reuse rates, plastic is still an option for functional and financial reasons, but metal, glass and ceramic have also become viable options. 

METAL: GREATER DURABILITY, LONGER LIFE 

Metal reusable packaging is often made of stainless steel or aluminum. 

The Pros 

Metal packaging’s key advantages include durability and the ability to provide what many consumers describe as an “improved” or “premium” experience. Metals—especially stainless steel—are incredibly durable. When used for packaging, it retains its quality through many washing cycles, making it ideal for reuse models with high return rates, such as closed-loop settings (for example, school cafeterias) and bring-your-own (BYO) programs.  

Metal is also technically highly recyclable and offers a strong end-of-life pathway—if it’s captured. Aluminum is widely accepted in U.S. recycling systems and has a strong secondary market, with minimum degradation from repeated recycling (in contrast to plastic). However, metal packaging often requires linings to be compatible with many food, beverage and personal care formulas, creating recycling and washing challenges.  

Stainless steel is also 100% recyclable, though not commonly accepted curbside. However, because it is a high-value material, reuse operators can potentially find recovery alternatives for decommissioned packaging via business-to-business recycling.  

The Cons 

The benefits of metal come with trade-offs, particularly higher financial and environmental costs.  

Metals are generally more expensive than plastic, making them less affordable for some businesses and consumers. The process of mining and converting raw materials into metal is also very carbon intensive.  

For certain applications, like hot or frozen items, metal packaging can be polarizing. In one study, we found that one third of consumers prefer metal cups due to insulation and perceived quality, while another third avoid them, often citing taste concerns or discomfort with how hot the cup feels. But context matters. Coffee drinkers may need double-walled steel formats that insulate well, while sport fans might prefer an aluminum cold cup to keep them cool at a summer game.  

GLASS AND CERAMIC: ELEVATED EXPERIENCE, HIGH SATISFACTION

This includes packaging made of borosilicate glass, a type of glass known for its high resistance to thermal shock and chemical corrosion.  

The Pros 

Glass and ceramic offer an elevated consumer experience in many product categories, with consumers defining them as “aesthetically pleasing”. Both materials are well-liked for dine-in environments, in both home and retail settings. These materials are also highly stable and compatible with food and personal care products. They do not retain odors or flavors, and can be effectively sanitized across many use cycles. 

If recycled glass is used, the environmental benefits are notable. Using 10% more cullet––also known as recycled glass––in glass manufacturing can save 2–3% of energy and reduce CO2 emissions by 4–10%. Reuse of glass at scale has also been used for beverage globally. In the U.S., reuse is limited but does exist in programs like Oregon’s BottleDrop Refill and local dairy operations like Straus Creamery and Oberweis Dairy in the Midwest.  

The Cons 

While extremely sturdy and durable overall, one drop on a hard surface, or a collision with another product can result in chips or cracks that render the product unusable. This limits the scalability of returnable programs that depend on broad consumer participation in open systems.  

From a financial and environmental standpoint, glass and ceramic are also costly to manufacture relative to plastic. Both are made from widely available raw materials but have energy-intensive manufacturing processes and high transport emissions due to their weight. Forming raw materials into glass requires melting them at high temperatures, which accounts for 70% to 80% of the energy consumption of the entire manufacturing process and is typically accomplished by burning natural gas. The good news is that according to NREL, glass manufacturing emissions can be reduced by over 80% through recycled content, electrification and renewable energy. .  

One major issue with ceramic is that it cannot typically be recycled—when collected, it is often downcycled into materials like brick or concrete. Glass, on the other hand, is highly recyclable, with established pathways to recover reusable glass at the end of its life, if the right systems are in place. The highest value recycled glass is collected through drop-off programs where it can be sorted by color before it breaks, as mixed color cullet is of little to no value to processors. However, U.S. recyclers face big challenges collecting and sorting curbside glass today. Small-format plastics contaminate glass streams at materials recovery facilities (MRFs)and most glass is sent to landfill. This is a key challenge that the Center for the Circular Economy at Closed Loop Partners is looking to solve through its Consortium to Recover Small-Format Packaging.  

Material Fit Depends on System Design  

This partial analysis illustrates the complexity involved in selecting materials for reuse systems—and the need to go beyond a static lifecycle analysis. Aligning material selection with system design is critical. Because of the complexity and relative novelty of reuse systems in many product categories, innovation and experimentation are more important than ever. As reuse systems evolve, the Center for the Circular Economy’s pragmatic, data-driven and collaborative approach will continue to reduce risk in reuse, and accelerate the scale-up of the materials and systems that work.  

CALL FOR INNOVATION

Are you developing materials or technologies that could reshape reuse systems?

We’re always looking to collaborate with innovators designing and building solutions for real-world systems—solutions that deliver on performance, cost and environmental impact. Contact us at [email protected]

SUMMARY TABLE

At Closed Loop Partners, we invest in companies that are not only solving urgent environmental challenges but also building resilience into the systems we rely on every day. Our investment in LAIIER—a Denver-based startup pioneering printed sensor technology for leak detection—is a reflection of this mission. LAIIER is tackling a critical and costly issue: liquid leaks in commercial and industrial buildings and infrastructure. By detecting water and other liquid leaks, they are enabling a future where our built environment is smarter, more sustainable, and more resilient to climate-related risks.

The Problem: Hidden Leaks, Escalating Risks

Leaks in buildings and infrastructure like wind turbines are a silent threat. They cause billions in damage annually, disrupt operations and contribute to the waste of finite water resources. In data centers, commercial real estate and industrial facilities, even minor leaks can lead to catastrophic failures. Traditional detection methods are slow and reactive, with average response times exceeding 80 hours. This delay not only drives up insurance claims and repair costs but also increases vulnerability to infrastructure stress, reducing the life of critical assets. The more rapidly these assets must be sunset, the more we need to rely on new materials to replace them––an increasing risk as global supply chains increase in volatility and material availability is less consistent.

LAIIER’s technology offers a proactive defense—detecting leaks before they become disasters and enabling buildings to respond faster and smarter.

The Solution: Smart Sensors for a Resilient, Less Wasteful Future

LAIIER’s innovation lies in its Severn WLD™ system—a printed, adhesive sensor that can detect as little as two drops of liquid. These ultra-thin, flexible sensors can be installed in hard-to-reach areas and integrated directly into building materials, including roofing systems. This is especially critical for data centers and other high-value infrastructure, where downtime from water damage can cost millions.

The sensors are paired with LAIIER Cloud™, a real-time monitoring platform that provides analytics, remote configuration and alerts. This combination enables rapid response to leaks, reducing the risk of structural damage, mold and system failures. It also supports long-term resilience planning by generating data that can inform predictive maintenance and infrastructure upgrades.

LAIIER’s impact extends beyond resilience. Their technology is a powerful enabler of the circular economy. By catching leaks early, LAIIER prevents damage to walls, floors and ceilings––materials that would otherwise end up in landfills. This approach reduces both water and material waste, all while helping customers lower their insurance premiums and utility costs––creating a compelling value proposition that’s both environmental and economic.

The Applications: Where Smart Sensors Are Most Needed Today

One of the most exciting applications of LAIIER’s technology is in integrated roofing systems. Through a strategic partnership with Carlisle Construction Materials––who also participated in this funding round––LAIIER is embedding sensors into roofing membranes. This creates “smart roofs” that can detect and localize leaks in real time, providing a critical layer of protection for buildings vulnerable to heavy rainfall.

Data centers also benefit significantly from partnerships with LAIIER. As we build more, faster to meet our growing demand for AI, increasingly hyperscalers are relying on water-based cooling technologies. This means leaks can come from the inside just as easily as from outside sources––and when water intrusion compromises sensitive equipment, it can lead to cascading failures.

Why Now?

Rising insurance costs, stricter building codes and increasing costs from damaged equipment and downtime are driving demand for proactive leak detection. LAIIER’s technology addresses all of these challenges––helping customers reduce risk, save resources and build smarter, more adaptive infrastructure.

We invested in LAIIER because we believe in their mission, their team and their technology. Co-Founders Matt Johnson and Bibi Nelson bring over a decade of experience in printed electronics and have built a culture of thoughtful, impact-driven innovation. With a differentiated product, a growing customer base and strong strategic partners in insurance, roofing and elsewhere, LAIIER is poised to become a category-defining company in smart infrastructure. We’re proud to support them as they help build a more resilient, circular and sustainable future.

Learn more about LAIIER here.

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

Reuse is not easy.  

Transitioning everyday goods from disposable to reusable — products and packaging that are returned, collected, washed, refilled then redistributed — is complex. For decades, the retail industry has relied on a system where hundreds of thousands of product categories have been optimized to stay fresh and stable through supply chains, deliver a great consumer experience, and be conveniently disposed of anywhere after years of use. Moving away from this is no small feat. At a small scale, the cost of washing and collecting containers alone currently can be prohibitive. That’s before the price of the reusable container itself is factored in, divided by the number of times it’s actually reused.  

Reuse is possible.  

Closed Loop Partners’ Center for the Circular Economy spent the last seven years building multi-brand, multi-sector collaborations that are solving complex reuse challenges that many brands can’t tackle on their own. In Petaluma, California, the Center launched the nation’s first citywide reusable cup program, and saw consumers adopting and maintaining new reuse behaviors almost overnight. Return rates increased week by week, while costs went down. Similarly, our reuse pilots in retail stores throughout Denver and Tucson drove a significant shift in consumer behavior by rallying public and private sectors behind a commitment to move beyond single-use bags and make reduction and reuse a daily norm. 

Reuse is coming to retail, and to entire cities. 

Today, there’s renewed momentum — and urgency — driving the growth of reuse. New policy mandates, on top of consumer and climate pressures, are pushing brands and retailers to refocus on solutions that reduce waste. The first reuse target of SB-54, the California law that mandates packaging reduction and reuse, is effective in just 18 months. It’s no longer a question of whether brands need to build capability in reuse but how and when.  

That’s why the Center for the Circular Economy is launching the Reuse Cities Initiative, the largest ever citywide reuse program in the U.S. Starting in California in 2026, the initiative builds upon the Center’s reuse work in cities across the U.S., including Denver, Tucson and Petaluma and is designed to address the two biggest barriers to scale: 

1. Cost — how to reduce the cost of reuse to make it viable for brands, retailers and consumers; 
2. Consumer behavior — how to offer consumers great options that help them build the daily habits needed to return and participate consistently. 

Reuse can scale.  

The Center has established an in-market implementation approach that works. In collaboration with brands, operators, municipalities and innovators, over the last seven years, we’ve already built the blueprint to shift consumer behavior and reduce system costs—now we’re applying these lessons at scale: 

• Collaboration: Citywide activation and cross-sector alignment helps drive measurable behavior change; 

• Supply Chain Redesign: Partnerships between brands, innovators and operators unlock shared infrastructure and logistics improvements; 

• Consistent Messaging: Unified consumer messaging across partners helps reinforce trust and drive loyalty; 

• Packaging Engineering: End-to-end testing to reach environmental breakeven points faster; 

• Operational Alignment: Seamlessly integrating reuse into retail and foodservice environments without disrupting operations increases retailer adoption. 

As an extension of the NextGen Consortium’s successful in-market reuse programming, the Center is bringing this proven framework to life through a long-term city launch in California. The timing couldn’t be better: this initiative will lay the groundwork for compliance with SB-54 by building critical reuse infrastructure, including a high-volume, tech-enabled washing facility. This facility will support higher throughput, lower costs, and more standardized operations — bringing reuse closer to cost parity with single-use packaging.  

The Reuse Cities Initiative will focus on reusable packaging across multiple retail categories, initially building off of the NextGen Consortium’s in-market food service packaging reuse programming,  and anchored on high-volume venues like stadiums, schools, possibly an airport, where we can deliver better unit economics and higher return rates.    

Retailers play a key role. 

Retailers and consumer brands from all sectors can play a big role in the Reuse Cities initiative. The initiative is setting up new regional reuse infrastructure that is initially set up to service the foodservice brands in the NextGen Consortium, but can expand to serve other packaging categories.  

Leveraging the infrastructure (washing, reverse logistics, tracking systems, community education program) from the Reuse Cities Initiatives, brands and retailers will have an accessible entry point to reuse. Just as the beverage industry laid the foundation for current recycling systems, the foodservice sector is pioneering this next wave of at-scale reuse in retail and beyond.   

To learn more about how your team can engage with the 2026 citywide launch, get in touch with us at [email protected]. 

When it comes to reuse, words matter. As we reinvent reusable packaging systems to thrive in today’s world, effective communication is as crucial as any operational consideration. Successful systems depend on brands and solution providers effectively guiding consumers to feel inspired and empowered to reuse—or at the very least, to foster awareness of and participation in new reusable programs. 

Reuse comes with new habits: using and disposing is such an engrained part of our daily lives that asking people to return packaging takes significant cognitive effort. It involves asking time-starved consumers to digest new information and to act on it consistently throughout their day-to-day lives. To break through the noise of the 50-400 ads that bombard Americans every day, the first challenge of a new reuse program is to disrupt. Then, there are a few quick seconds to explain the new system and inspire consumers to take action, seeding a new habit that will be formed over time with consistent repetitions. 

In 2024, Closed Loop Partners’ Center for the Circular Economy led an unprecedented collaboration in California that got an entire city reusing. The NextGen Consortium’s Petaluma Reusable Cup Project1 took on the challenge of making reusable cups a citywide norm. Working together with leading global brands, 30 local businesses and many local champions, we launched a campaign to inspire Petaluma to be part of the solution. The campaign reached 8.7 million media impressions, with 80% of people in the city aware of the program. In-store comms and signage played a disproportionate role in successfully driving awareness, understanding and returns. 

In its three months, the initiative saw over 220,000 cups returned in the town of ~60,000 residents. Valuable learnings from over 1,000 consumer interviews and surveys during the Petaluma Reusable Cup Project taught us the best practices to strengthen reuse messaging.  

Below are 5 keys strategies for brands and innovators to get their customers to reuse: 

1. Use consistent keywords and familiar phrases. People often don’t read instructions when approaching their trash bins, so they need consistent use of simple keywords to understand what they are supposed to do differently. A catchy slogan like ‘sip, return, repeat’ helps land the message. The use of clear fonts and bold text is also vital to cementing these new instructions.  
2. Lean on visual cues. Logos and symbols are important cues to quickly trigger the desired action. As it takes time for a logo to stand alone and carry its own meaning, symbols should be used along with words until they are recognized widely. It took time for the chasing arrows to become the universal sign for recycling, and it will take some time for reuse logos to get there too.  
3. Colors are an effective and accessible communication tool. Colors transcend words and logos. The right color selection can make consumers pause and look for more information. Colors can also convey that a product is more premium, influencing how shoppers subconsciously think about disposal. Matching the color of the bin to packaging can cue that items are meant to go there. In Petaluma, using color to signal that purple cups go in the purple bins helped business and consumers explain and understand the system quickly. 
4. Don’t overwhelm your customers with the problem of all packaging waste. Focus on the solution at hand and desired action, instead of the full scale of packaging waste to be solved for the planet, to help consumers engage meaningfully. And it’s best not to overpromise. Consumer communications should prioritize the part of the solution users need to participate in (i.e., in returnable packaging systems, to “return” packaging after use) rather than abstract or highly technical ecological benefits (i.e., that a reusable cup helps to avoid XX tons of CO2e).  
5. Gratitude and positivity go a long way. To show impact and build trust, corresponding signage and employee prompts can help drive home reuse as a new norm. Phrases like “thanks for being part of the solution” clue customers into how their action is contributing.  Gratitude can also serve as positive reinforcement to accelerate a new social norm. Showcasing how many single-use cups have been prevented from going to landfill also helps reinforce the desired behavior and can be framed as a community achievement. 

Show up consistently to deliver the message.

Packaging is the main vehicle for communication; each word and square inch counts to inspire and educate consumers on desired circular actions. Here’s how the Petaluma reusable cup was designed to disrupt, engage and inspire consumers to return: 

 When and how to use messaging on your packaging and collection bins: 

Language is just one part of the reuse culture; collaboration and consistency are key.

No matter how effective it may be, one sign, ad or piece of packaging design alone cannot spark a culture of reuse. It takes trusted brands, businesses, as well as public and community influencers working together to reshape the norm away from single-use packaging. 

As brands refine language to make reuse compelling, being at the table with the right partners is critical to making reuse stick. As reuse moves from closed systems to city-wide programs, using words that resonate––and collaborating with partners across the value chain––will be a key driver to further scale.  

Emily Molstad, CEO of our portfolio company, VALIS Insights, and Aly Bryan, Investor on the Closed Loop Ventures Group team at Closed Loop Partners, explore how the metals processing system in the U.S. is misaligned––with high value scrap going to low value applications far away from where it’s recovered. The discussion explores the core reasons for this misalignment, and how our portfolio company, VALIS, is supporting processors to make more money with local processing while keeping copper, nickel, aluminum and many other metals in domestic circulation.

There has never been a better time to strengthen metals circularity, and Closed Loop Ventures Group is energized to continue to support the VALIS team.

Aly: One of the things that’s always struck me about scrap processing in the U.S. is the amount of scrap that’s exported. After all, there are valuable materials in those exports! Copper, nickel, aluminum. Why is it that valuable scrap gets sent overseas today?

Emily: One of the biggest challenges in scrap metal is the fragmented nature of the secondary metals processing system––which produces alloys or remelts metal scrap to create new products. While there are several, multinational organizations operating in the space, huge volumes of scrap metal go through a localized system of processors within a region. This makes sense, since it wouldn’t be economical to lug every end-of-life car to a centralized processing facility. So instead, they’re processed at smaller facilities closer to consumers. However, those regional processors have long-standing customer relationships, which, historically, have been overseas, in areas where labor costs for manual sortation are low. This means that a lot of high value metals from local manufacturers are transported long distances and become commodities elsewhere, instead of being recaptured within the domestic market. This has remained the status quo for a long time, as scrap processors often prefer to sell how they’ve always sold, with hesitancy to take advantage of changing market conditions that allow them to operate more profitably while supporting national security of metals and minerals.

Aly: What do you mean by changing market conditions?

Emily: Let’s look at aluminum as an example. All the different types of aluminum, such as high-value wrought and lower-value cast alloys that are in our cars, home appliances and other products, are packaged into a recycled material specification known in the industry as “Twitch.” Historically all these mixed alloys were blended together and downcycled, or downgraded, into cast aluminum. This is because there was sufficient demand for cast aluminum. Wrought aluminum producers met their supply through other sources. Over time, the distribution of different types of aluminum alloys that are used in manufacturing has shifted. There’s now a considerable amount of high-value wrought aluminum that’s being lost when it’s downcycled, and wrought producers need more supply to meet growing demand, creating a market for sorting Twitch further into its cast and wrought fractions. This changing market condition was validated at the ReMA National Convention, with the association governance voting to approve a new industry specification called “Vesper,” which is defined as the wrought aluminum sorted from Twitch. There’s now language in place to support buyer and seller agreements, validating the growing demand for sorted products that drive the economics for investing in further processing of mixed scrap metal.

Aly: How does VALIS work with processors to improve their economics and sell inventory domestically?

Emily: At VALIS, we’re building integrated hardware and software solutions that help scrap processors improve the efficiency of their day-to-day operations. We provide them with tools to capture accurate, reliable data on their material quality so they can more effectively monitor their process and sell their products. All that quality data is tied into the digital twin we build of their entire processing line. By integrating with their equipment and capturing production information, we can give them full visibility into the performance of their operations, alert them to issues within their sorting process, and give them tools to predict production volumes based on historical performance. They can tie in pricing metrics to understand the economics of making changes to their operations or help them easily see how improving sortation would contribute to their profitability.

Aly: You’re in market today with VALI-Sample, your sampling product that provides a more efficient way to sample and track composition of drop-out and shredded products. Why have your partners chosen to roll out VALI-Sample across their plants?

Emily: It would be physically impossible to get a detailed analysis of all the metal running through a processing yard. Sampling helps gain visibility into material quality and value, and measure operational performance. Data generated during sampling then informs sales and processing decisions. But today, that data is captured on pen and paper, or analyzed in massive spreadsheets. That leads to human error and a lack of trust in the results. There’s also uncertainty around how well a sample represents reality. Without high quality, reliable data, decision makers are limited in the actions they can take to improve their business. VALI-Sample delivers the accurate data that processors need. It’s an easy-to-use hardware tool that delivers an improved work experience for sampling technicians. It is enabled by a powerful software platform that gives facility managers the ability to audit their sampling process, and sales managers the receipts on material quality they need to back up sales or defend against a claim.

Aly: Like many, I’ve spent more time talking and thinking about tariffs in the past four months than ever before. The metals industry was among the earliest hit––with tariffs on everything from aluminum to copper and steel. How are your customers able to be more agile and resilient to tariffs?

Emily: Tariffs can make it more expensive to import virgin metals for new manufacturing, incentivizing processors to find domestic solutions. Since so many of these metals are partially recovered domestically today, processors who are willing to go the extra mile and do the extra sortation step are going to be much better positioned to supply local smelters and ultimately local manufacturers of new products. By integrating our technology, we can help processors navigate these challenges and capitalize on the opportunities presented by the boom in domestic manufacturing.

Aly: As we close out our discussion, I’ll ask you the question I ask all our founders on “Making Circularity Stick”: What do we need to make circularity stick in the scrap metal industry?

Emily: In a phrase? Cross-value chain collaboration. Looking ahead, we believe that involving the entire ecosystem is key to making circularity the default way of doing things in metals. Automotive manufacturers need to be transparent on alloy specs and source recycled metals, metal producers need to increase recycled content in their systems, scrap processors need to improve the quality of their outputs to better match the requirements of mill processes, and so on. We need all of these actors to work together, challenging what’s possible, and continuously raising the bar on circularity in metals to get there. At VALIS Insights, we are proud to be at the forefront of making circularity stick in the metals recycling industry. By leveraging technology and data, we are partnering with our customers to transform the processing system and pave the way for a more sustainable future together.

“Making Circularity Stick” is a collection of interviews with founders across the Closed Loop Ventures Group portfolio sharing their experiences of making circularity stick across industries. If you’re interested in connecting with the founders sharing their stories, please reach out to Aly Bryan at [email protected].

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

Today, food waste in consumer-facing businesses is largely caused by operational inefficiencies within foodservice supply chains, such as difficulty forecasting and inefficient preparation techniques, in addition to plate waste. Chain restaurants often overbuy food and over-prep unordered food to avoid missing revenue opportunities. Misaligned production not only results in large volumes of food waste, but also creates major financial losses, given that food costs represent on average 30-50% of a restaurant’s total spend. By improving these operational inefficiencies within this supply chain, food retailers have an opportunity to achieve a net benefit of over $5 billion.[2]

What is needed to improve operations?

Closed Loop Ventures Group––the venture capital arm of Closed Loop Partners, a firm focused on building the circular economy––recently led the seed investment round in ClearCOGS, a leading provider of AI-powered predictive analytics for restaurants, for their platform solution that supports consumer-facing businesses in improving their operations and mitigating food waste.

ClearCOGS offers a comprehensive AI-powered demand planning and data analytics platform for restaurant operators and foodservice businesses, providing exceptional accuracy and immediate benefit to bottom lines. They analyze historical transactions and recipe data provided by the restaurant to generate precise, item-level forecasts that guide prep schedules, ordering and staffing decisions. Their integration with Toast, a leading cloud-based restaurant management software company, offers Toast customers with ClearCOGS accounts a one-click integration for their freemium offerings.

Through their solution, restaurants can make significant improvements to their operations and supply chains, streamlining production and inventory to more accurately meet demand and mitigate the inaccuracies that result in financial and environmental losses.

And the results speak for themselves.

“We were shocked that literally overnight we were able to add 2% to the bottom line with no operational changes.“ Goop Kitchen, Los Angeles, CA

“ClearCOGS reports are more accurate, saving as much as three racks of ribs daily, or more.” Red White & Que, Green Brook, NJ

“Implementing ClearCOGS was an effortless experience. The setup was straightforward, and the team at ClearCOGS provided exceptional support and resources, making it easy to customize the solution to our specific needs.” Blue Square Pizza, Hopkinton, MA

What’s their Special Sauce?

We invested in ClearCOGS knowing that the challenges in restaurants are best understood by those who have worked in them. Matt Wampler, CEO and Co-Founder of ClearCOGS, knows intimately the struggles of running a small business.

At 21, he took on the challenge of turning around a struggling sandwich shop. He put in the hours to successfully turn that around and scale other locations before deciding that helping other owners better manage their own operations was his next challenge. He is perfectly paired with Osa Osarenkhoe, CTO and Co-Founder of ClearCOGS, who studied Electrical Engineering (BA) and Computer Engineering (MA) before working in tech and launching his first start up.

We look forward to seeing what the team will unlock for the restaurant industry, tackling a major source of waste that––when addressed––can result in significant cost savings as valuable materials are diverted from landfill. Closed Loop Partners is delighted to work with ClearCOGS on scaling their solution, preventing food waste at restaurants.

If you are interested in talking more about food waste or getting in touch with ClearCOGS, please reach out.

About Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough circular solutions for foundational materials that underpin and significantly influence a wide array of vital sectors of the economy. These materials include organics, minerals, polymers and water. Closed Loop Ventures Group partners with founders and companies who rethink how products are designed, manufactured, consumed and recovered, with the shared vision of reimagining supply chains and eliminating waste. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Ventures Group and apply for funding, visit https://www.closedlooppartners.com/capital-management/apply-for-funding/ventures/

About ClearCOGS

ClearCOGS is an AI-driven forecasting solution designed specifically for restaurant operations. Its predictive analytics simplify critical daily decisions around food prep, ordering, and staffing—helping restaurants reduce food waste, improve operational efficiency, and maximize profitability. To learn more, visit www.clearcogs.com.da

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

[1] ReFed – https://refed.org/food-waste/the-problem

[2] ReFed – https://insights-engine.refed.org/solution-database?dataView=total&indicator=us-dollars-profit&stakeholder=foodservice

Eco-Products®, a Novolex® brand and certified B Corp, is a provider of foodservice packaging made from renewable, recycled and reusable materials. In 2023, the company launched CIRC (Controls Intended to Remove Contamination), an easy-to-use set of customizable tools and frameworks to help generators––such as restaurants and stadiums––packaging manufacturers, distributors, haulers and composters control and manage contamination from non-compostable products and get rid of contamination before it makes its way to the composter.  

Composting Consortium: We know that contamination is a systemic challenge and one of the greatest barriers to the recovery of compostable packaging. As a brand who sells and manufactures these compostable materials, tell us how you’re combating the pervasive challenge of contamination in food waste streams.

Eco-Products: Contamination in compost streams is the defining challenge for composters, often leading to inefficiencies and increased costs. We’ve experienced this reality firsthand in Colorado, where Eco-Products is headquartered. Contamination from non-compostable materials has wreaked havoc on the local composting ecosystem in Colorado. We believe that food-contact compostable packaging—in addition to recyclable and reusable materials—has a key role to play in diverting food waste from landfill. We want to see compostable packaging succeed as a solution, but we know that contamination must first be solved to achieve that reality. We know this challenge isn’t exclusive to Colorado, and we knew we had to do something about it, so we developed a program called CIRC (Controls Intended to Remove Contamination).

Composting Consortium: How exactly does the CIRC program work and who is it for? 

Eco-Products: Unlike third-party certifications, CIRC is a customizable tool that is designed to build trust, transparency and accountability between generators—such as restaurants, stadiums or event venues—packaging manufacturers, distributors, haulers and composters. The CIRC Toolkit offers a menu of recommended contamination controls spanning Procurement, Operations, Communication, and Composter & Hauler Engagement that we call “the scorecard.” Each section has a list of controls that are practical and useful for mitigating contamination in the compost stream. The program verifies that foodservice operators have taken key steps to avoid sending non-compostable items to composters, ensuring that everyone involved in the composting process is aware of their role in preventing contamination. With CIRC, composters can have greater confidence in the organics streams they receive.

Composting Consortium: Can you give us an example of how a stakeholder can use the tool?

Eco-Products: Yes! For example, a restaurant can reference the ‘Procurement’ section of the scorecard for a list of best practices and guidance when ordering and stocking certified compostable packaging. By following these order requirements, the restaurant can feel confident that the products they’re ordering have been approved by the certifier, the operator and the composter.

Composting Consortium: What makes CIRC different from other solutions?

Eco-Products: One of the standout features of the CIRC program is its open-source nature. This means that anyone, regardless of whether they are an Eco-Products customer, can access and benefit from the program’s resources.

For composters, the primary benefit of CIRC is the reduction in contamination, which leads to more efficient composting processes. With fewer non-compostable materials to sort out, composters can focus on their primary duty: producing high-quality compost.

For haulers and distributors, reducing contamination can lower the costs associated with handling and transporting contaminated loads.

For businesses and organizations committed to food waste reduction, adopting the CIRC program can contribute to a more sustainable waste management system. Restaurants, stadiums, and other venues that implement CIRC can enhance their reputation among environmentally conscious customers. Demonstrating a commitment to reducing waste and supporting composting efforts can attract and retain customers who value sustainability.

Composting Consortium: What advice would you give to brands, generators, haulers or composters who are struggling with contamination?

Eco-Products: Try using CIRC! To date, our program has been piloted at two locations: Knox College in Galesburg, Illinois and the University of Colorado, Boulder. In both instances, we’ve seen great results and dramatically reduced levels of contamination. We are calling on more stakeholders to utilize this free resource and are happy to support any organizations or businesses with the use and implementation of this tool.

Composting Consortium: What are your future plans for the CIRC program and how do you envision supporting the expansion of composting infrastructure?

Eco-Products:  We plan to expand our CIRC program this year by creating supplemental resources, including a check list for assessing operational contamination risk factors. By helping reduce contamination issues through CIRC, we aim to help create a pathway for compostable packaging to succeed as a solution for food scrap recovery.

Composting Consortium: What inspired you to join the Composting Consortium as a Material Innovation Partner?

Eco-Products: When we learned that the Composting Consortium launched a Material Innovation Platform last year, we knew we had to get involved. The Composting Consortium’s groundbreaking research and in-market testing over the last three years has paved the way for dialogues in this industry that are helping to move the needle for compostable packaging. In particular, the Disintegration Study was a game-changer for the industry—offering data and proof points on how certified compostable materials break down in compost piles. We’re excited to continue our partnership with the Composting Consortium because we believe that this initiative is uniquely positioned to scale food waste composting infrastructure, help solve for contamination and drive positive, lasting change for the industry.

Construction and demolition is now one of the biggest sources of waste in the world. By 2025, the annual volume of construction waste generated globally is expected to reach 2.2 billion tons.[1] In the U.S. alone, 600 million tons of construction and demolition debris were generated in 2018, more than twice the amount of municipal solid waste.[2]

The challenge lies not only in sheer volume, but in the complexity of construction materials. Non-concrete waste material––such as wood, drywall, asphalt shingles and tile––often have plasticizers (chemicals that make materials more flexible and easier to mold), trace or heavy metals and polychlorinated compounds in them, making it hard to recover those materials for their next lives. Furthermore, when those materials end up in landfills, they can leach those toxic chemicals into arable land and waterways––where they leave lasting environmental consequences.

Mycocycle, a biotechnology startup, found a solution to help address this complex challenge, inspired by fungi. Their patent-pending process improves the natural functions of fungi to transform construction waste into low-carbon raw materials for the built environment. Within a matter of weeks, their technology can turn organic waste from the built environment––such as carpet fiber and tires––into MycoFIBER©, MycoFILL© and MycoFOAM©, all raw materials that can replace virgin-derived materials.

Closed Loop Partners’ Ventures Group saw a key opportunity in Mycocycle’s technology, a solution that reimagined how materials can be recovered and kept in circulation. This aligned with Closed Loop Ventures Group’s focus on deploying early-stage funding to breakthrough circular solutions for foundational materials that underpin and influence vital sectors of the economy––from water and minerals to polymers and organics. Mycocycle’s solution to recover organic waste in the built environment unlocks new possibilities for circularity across a major industry.

Last year, Closed Loop Ventures Group led Mycocycle’s Series Seed extension to help address the growing challenge of construction waste––with participation from US Venture, the Illinois Department of Commerce and Economic Opportunity INVENT fund, and existing investor TELUS Pollinator Fund for Good.

Since then, over the past 10 months, the Mycocycle team has continued to impress––making significant progress on processing cost reductions and signing exclusivity agreements with major multinational companies for certain product categories. They are demonstrating that not only are their products not harboring the toxic chemicals of their inputs, but they are exhibiting significant performance improvements––in strength, elasticity and more––from the virgin-derived construction products they’re replacing.

Today, the team continues to operate in the south of Chicago––in a space nearly five times the size of the one they were working in over a year ago. And they are filling orders, using mycelium to transform organic waste from the built world into reusable, bio-based ingredients. Those ingredients are going into non-recoverable plastics, replacing food-grade fillers like corn stover, for which higher and better uses exist in biomanufacturing. They are also going into turf applications, replacing materials that have been outlawed in some geographies because of excessive microplastic shedding that pollutes airways and waterways. With products that are both cost competitive against the incumbents and gross margin accretive for the business, Mycocycle is on a path to scale that has already unlocked significant reductions in their processing costs––and there is still room for growth.

A big part of how Closed Loop Ventures Group invests is by identifying founders and leadership teams who balance a “no quitting” attitude with the detail orientation and the project management expertise to move the needle on tough challenges. Joanne Rodriguez, Founder & CEO of Mycocycle, and Colin Litow, COO of Mycocycle, exemplify these characteristics, creating a strong foundation for their team through its next phase of growth.

Today’s reality is that the built environment is still in the early stages of bringing circular principles to bear in the lion’s share of applications. Asynchronous design and demolition processes make it challenging to identify reuse and next life opportunities for materials, and the lifecycle of a building is long enough that it’s rare for an organization to think about disassembly and deconstruction at the time of design. Even if they were, less than 2% of the building stock is new each year.[3] Much more focus is needed on managing renovation and retrofit processes––not just tracking, but on finding new homes for the materials once they’re removed.

Mycocycle is a core part of the solution, as are the companies exploring opportunities to maintain or reduce costs while using recovered materials as inputs into their products. Closed Loop Partners’ Ventures Group is excited to continue to work with the Mycocycle team and those across the manufactured world as they lay the groundwork for a more circular future for the built environment.

About Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough circular solutions for foundational materials that underpin and significantly influence a wide array of vital sectors of the economy. These materials include organics, minerals, polymers and water. Closed Loop Ventures Group partners with founders and companies who rethink how products are designed, manufactured, consumed and recovered, with the shared vision of reimagining supply chains and eliminating waste. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Ventures Group and apply for funding, visit www.closedlooppartners.com.

 About Mycocycle

Mycocycle, Inc. is a nature-inspired and woman-owned biotechnology startup that leverages fungi to transform industrial waste into reusable materials. Founded in 2018, the company drives circularity in the construction supply chain and diverts waste from landfills. Mycocycle blends lab-cultivated fungi with debris at the point of waste generation to transform waste into new raw materials. To learn more, visit http://www.mycocycle.com.

[1] Source: Construction Dive.

[2] Source: Environmental Protection Agency.

[3] Source: https://www.usgbc.org/articles/existing-buildings-99

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.