More capital and a stronger network can facilitate better business

Summary of the contribution of Jamie Butterworth, partner at Circularity Capital.

An economy based on digging things out of the ground works well when there is an abundance of materials, but today there are serious concerns about security of supplies and price volatility. Finance is key to encouraging the transition to a circular economy but it is difficult for circular economy companies to raise money, particularly SMEs.

We look for two types of company – transformers are businesses that are moving from a linear to a circular economy model, while enablers have a particular product, service, solution or innovation that helps other companies to transform.

It is difficult to attract large investors to the circular economy because most large institutional investors either make very large investments in funds or invest in funds of funds – they need products to invest in and there aren’t any at the moment. But the circular economy creates real investable opportunities – it improves customer relationships, the visibility and quality of earnings and the valuation of companies.

Also read the article 'Unravelling the investment opportunities for the circular economy'.

View a short video of Jamie Butterworth on the commercial opportunities of the circular economy.