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traceless materials GmbH

traceless materials GmbH Advances with EIC Accelerator Funding and Secures €36.6 Million Series A for Sustainable Bioplastic Production

GermanyEIC Accelerator2021

Table of Contents

  1. The EIC Accelerator Project
  2. The Funding Rounds
  3. The Press Releases
  4. The Technology Advancements
  5. The Partnerships and Customers
  6. The Hiring and Company Growth
  7. The Media Features and Publications

1 The EIC Accelerator Project

EIC Accelerator Program Overview

The EIC Accelerator is a flagship funding initiative under the European Innovation Council (EIC), designed to support innovative startups and small and medium-sized enterprises (SMEs) with high-risk, high-potential projects. It aims to bridge the gap between research and market, helping businesses accelerate the development of breakthrough technologies and scaling them into viable market solutions.

The program primarily targets DeepTech sectors, including biotechnology, advanced materials, renewable energy, and digital technologies, focusing on projects that have the potential to disrupt existing markets or create new ones.

Funding Structure

The EIC Accelerator offers a blended finance option that includes both grants and equity investments:

1. Grants: Up to €2.5 million can be awarded as a grant to fund the innovation process. This funding is typically used for activities such as product development, prototyping, and market validation. The grant component serves to reduce the financial pressure on startups while they are developing their technology.
2. Equity Investments: The program provides equity funding of up to €15 million until 2024 and up to €10 million starting in 2025. This equity investment is designed to help startups scale their operations and attract additional private funding. The EIC typically takes a minority stake in the company, ensuring that the founders retain control while benefiting from the financial support.

Purpose in the European Ecosystem

The EIC Accelerator plays a critical role in the European DeepTech and startup ecosystem by:

  • Promoting Innovation: It encourages the development of innovative technologies that address societal and environmental challenges, supporting the EU’s goals for sustainable development.
  • Facilitating Market Entry: By providing financial support, the EIC helps innovative companies overcome the "valley of death"—the challenging phase that occurs between initial funding and market readiness.
  • Fostering Collaboration: The program enhances collaboration between startups, larger companies, and research institutions, allowing for knowledge sharing and resource pooling.
  • Stimulating Economic Growth: By supporting high-potential startups, the EIC Accelerator contributes to job creation and economic growth within the EU.

Role in Scaling and Funding

The EIC Accelerator is instrumental in helping companies scale through:

  • Funding Access: The combination of grants and equity enables startups to secure the necessary capital for growth, making them more attractive to private investors.
  • Business Development Support: The program offers coaching, mentoring, and access to a network of investors and industry experts, helping companies refine their business models and strategies.
  • Market Validation: By funding the development of innovative technologies, the EIC helps startups validate their products in the market, which can enhance their credibility and appeal to future investors.

Case Study: traceless materials GmbH and the MaEtra Project

Company Name: traceless materials GmbH
Project Acronym: MaEtra (Market Entry traceless materials)
Funding Type: Blended finance
Website: traceless.eu
Country: Germany
Date of EIC Accelerator Cut-off: June 16, 2021

Project Overview

Traceless materials GmbH focuses on developing sustainable alternatives to conventional plastic materials. Their project, MaEtra, aims to facilitate the market entry of their innovative, biodegradable materials that can potentially replace single-use plastics. The funding from the EIC Accelerator will support the scaling of their production capabilities and market penetration strategies.

Technology Basics and Background

Traceless materials GmbH has developed a proprietary technology that transforms agricultural waste into biodegradable materials. This innovative approach not only addresses the pressing issue of plastic waste but also utilizes resources that would otherwise be discarded, aligning with the principles of a circular economy.

1. Biopolymer Production: The company's technology involves creating biopolymers from natural fibers and biowaste. These materials can be processed into various forms, such as films and molded products, which exhibit similar properties to conventional plastics but decompose naturally over time.
2. Environmental Impact: The use of traceless materials significantly reduces the carbon footprint associated with traditional plastic production. The biodegradability of these materials means they do not contribute to long-term pollution, offering a sustainable alternative for industries heavily reliant on single-use plastics.
3. Market Potential: As global regulations tighten around plastic usage and consumers increasingly demand sustainable products, traceless materials GmbH is well-positioned to capture market share in the biodegradable materials sector. The EIC Accelerator funding will enable them to refine their production processes and expand their market presence.

In summary, the EIC Accelerator program is a vital component of the European innovation landscape, providing essential support to companies like traceless materials GmbH as they strive to bring groundbreaking technologies to market. Through its blended finance model, the EIC facilitates not only the development of innovative solutions but also the creation of sustainable business practices that can benefit society as a whole.

2 The Funding Rounds

Since receiving the EIC Accelerator funding on June 16, 2021, traceless materials GmbH, a Hamburg-based bioeconomy startup, has secured additional funding to advance its mission of providing sustainable alternatives to conventional plastics.

Funding Rounds:

1. Seed Funding (May 2021): Prior to the EIC Accelerator funding, traceless materials raised a seed financing round of an undisclosed amount. Investors included Planet A Ventures, High-Tech Gründerfonds (HTGF), and b.value AG. The funds were intended to support the hiring of new personnel and the construction of a pilot plant to scale production from laboratory to market-ready levels. (finsmes.com)
2. Series A Funding (€36.6 Million) (September 2023): On September 25, 2023, traceless materials completed a €36.6 million Series A funding round. The round was co-led by UB Forest Industry Green Growth Fund (UB FIGG) and SWEN Capital Partners' Blue Ocean fund. Additional participants included GLS Bank, Hamburg; Hamburger Sparkasse; Planet A Ventures; HTGF; and b.value. The capital is earmarked for constructing a demonstration plant in Hamburg to scale production capabilities for their innovative biomaterial technology. (traceless.eu)

Investor Information:

  • UB Forest Industry Green Growth Fund (UB FIGG): A private equity fund investing in sustainable and resource-efficient forest and bio-based industries. (htgf.de)
  • SWEN Capital Partners' Blue Ocean Fund: Invests in innovations addressing threats to ocean health, including pollution and climate change. (htgf.de)
  • GLS Bank and Hamburger Sparkasse: Local banking institutions in Hamburg that participated in the Series A funding round. (htgf.de)
  • Planet A Ventures: A green-tech investor supporting sustainable startups. (htgf.de)
  • High-Tech Gründerfonds (HTGF): A seed investor financing tech startups with growth potential. (htgf.de)
  • b.value AG: A deep-tech investor supporting innovative companies. (htgf.de)

Company Valuations and Exit Events:

Specific valuations for traceless materials GmbH during these funding rounds are not publicly disclosed. As of now, there have been no reported exit events.

In summary, since the EIC Accelerator funding in June 2021, traceless materials GmbH has secured a seed funding round in May 2021 and a significant Series A funding round in September 2023, with participation from various investors committed to sustainable and innovative solutions.

3 The Press Releases

Since receiving the EIC Accelerator funding on June 16, 2021, traceless materials GmbH has made significant strides in advancing its mission to provide sustainable alternatives to conventional plastics. Below is a summary of their key press releases and developments:

1. €36.6 Million Series A Funding Round (September 25, 2023): Traceless secured €36.6 million in a Series A funding round, led by UB Forest Industry Green Growth Fund ("UB FIGG") and complemented by SWEN CP’s Blue Ocean fund. This funding is earmarked for constructing their first industrial-scale production plant in Hamburg, Germany. The plant aims to produce traceless®, a bio-circular alternative to plastic, on a large scale, addressing global plastic pollution, climate change, resource scarcity, and biodiversity loss. (traceless.eu)

2. Partnership with Mondi for Plastic-Free Paper Coating (June 18, 2024): Traceless announced a strategic partnership with Mondi, a global leader in packaging and paper manufacturing. The collaboration focuses on integrating traceless® as a natural, compostable alternative to synthetic plastic coatings in the paper industry. This partnership aims to reduce reliance on fossil fuels and decrease plastic waste, aligning with both companies' sustainability goals. (life-sciences-europe.com)

3. €5 Million Funding from the German Federal Ministry for the Environment (May 17, 2023): The German Federal Ministry for the Environment awarded traceless €5 million to establish a demonstration plant in Hamburg. This facility will implement traceless's innovative technology on an industrial scale for the first time, producing several thousand tons of the material annually and replacing conventional plastics. The project is expected to significantly reduce CO2 emissions, conserve fossil resources, and save water and agricultural land. (hamburg-business.com)

4. Location Announcement for First Large-Scale Production Plant (March 7, 2024): Traceless revealed the location for its inaugural large-scale production plant in Hamburg-Harburg, situated in a former industrial bakery. The facility is set to commence operations in 2025, with plans to produce several thousand tons of traceless® granulate annually. This move signifies a substantial step toward industrializing their technology and scaling up production to meet growing demand. (life-sciences-europe.com)

5. Awarded the Deutsche Gründerpreis (September 14, 2022): Traceless was honored with the Deutsche Gründerpreis, one of Germany's most prestigious business awards, recognizing the company as the best startup of the year. The award highlights traceless's innovative approach to producing sustainable materials from plant residues, offering a viable alternative to conventional plastics. (startupcity.hamburg)

6. Featured in Science-TV Show Galileo (July 18, 2023): Traceless was featured in the renowned science-TV show "Galileo," showcasing their innovative approach to combating plastic pollution through the development of traceless®, a natural biomaterial alternative to conventional plastics. (traceless.eu)

These developments underscore traceless materials GmbH's commitment to advancing sustainable material technologies and scaling up production to address environmental challenges associated with plastic pollution.

4 The Technology Advancements

Traceless materials GmbH, founded in 2020, specializes in developing sustainable, bio-based materials as alternatives to conventional plastics. Their flagship product, traceless®, is a compostable biomaterial derived from agricultural residues, offering a plastic-free solution with a minimal ecological footprint. This material is versatile, suitable for applications ranging from molded parts and flexible films to paper coatings and adhesives. (bionity.com)

Advancements Since EIC Accelerator Funding (June 16, 2021):

Since receiving the EIC Accelerator funding in June 2021, traceless materials has achieved several significant milestones:

1. Product Development and Market Introduction:
  • C&A Partnership (December 2022): Traceless collaborated with fashion retailer C&A to replace conventional plastic hooks with traceless® hooks in their Hamburg Altona store. This pilot project marked the first market introduction of their bio-circular material innovation. (startupcity.hamburg)
    • 2. Strategic Partnerships:
  • Mondi Collaboration (June 2024): Traceless entered a strategic partnership with Mondi, a global leader in packaging and paper, to scale the use of traceless® as a natural alternative in paper coatings. This collaboration aims to reduce reliance on fossil fuels and decrease plastic waste in the paper industry. (startupcity.hamburg)
    • 3. Funding and Expansion:
    • Series A Funding (September 2023): The company secured €36.6 million in a Series A funding round, led by UB Forest Industry Green Growth Fund and SWEN CP’s Blue Ocean Fund. This investment is intended to expand production capabilities and scale their innovative biomaterial technology to an industrial level. (finsmes.com)
    • Federal Funding (May 2023): Traceless received €5 million from the German Federal Ministry for the Environment's Environmental Innovation Program to construct a demonstration production plant in Hamburg. This facility aims to implement their technology on an industrial scale, substituting several thousand metric tons of conventional plastic annually. (bionity.com)
    4. Technological Advancements:
  • The company has been scaling up its production from pilot to industrial scale, demonstrating the feasibility of their technology in large-scale applications. (bionity.com)
    • 5. Market Demonstrations:
  • The partnership with C&A and the collaboration with Mondi serve as key demonstrations of traceless® in the market, showcasing its potential to replace conventional plastics in various applications.
    • 6. Intellectual Property and Publications:
  • While specific details about new patents, scientific studies, clinical trials, or whitepapers are not readily available, the company's ongoing collaborations and funding suggest active development and potential publication of research related to their technology.

    • These developments highlight traceless materials GmbH's commitment to advancing sustainable materials and their growing presence in the market.

    5 The Partnerships and Customers

    Since receiving the EIC Accelerator funding on June 16, 2021, traceless materials GmbH has established several significant partnerships and secured key customers, enhancing its position in the market and advancing its technology.

    New Partners:

  • Mondi plc: In June 2024, traceless materials announced a strategic partnership with Mondi, a global leader in packaging and paper. This collaboration aims to scale the application of traceless®, a novel natural plastic alternative, across the paper industry. (life-sciences-europe.com)

    • New Customers:

    • Lufthansa: In September 2022, Lufthansa began testing protective covers made from traceless materials on individual flights, marking one of the first industrial applications of traceless® products. (chemeurope.com)
    • OTTO: In 2022, traceless materials collaborated with OTTO, a major European e-commerce company, to launch a pilot product in the fashion packaging sector, utilizing traceless® materials. (eu-startups.com)

    Nature and Purpose of Relationships:

    • Mondi Partnership: The partnership with Mondi focuses on integrating traceless® materials into paper coatings, providing a sustainable alternative to conventional plastic coatings. This collaboration aims to reduce reliance on fossil fuels and decrease plastic waste, aligning with both companies' sustainability goals. (life-sciences-europe.com)
    • Lufthansa Collaboration: The collaboration with Lufthansa involves testing protective covers made from traceless® materials on flights, assessing their performance and feasibility for broader use in the airline's operations. (chemeurope.com)
    • OTTO Pilot Project: The pilot project with OTTO focuses on developing and testing fashion packaging solutions made from traceless® materials, aiming to replace conventional plastic packaging in the fashion industry. (eu-startups.com)

    Market Positioning:

    These partnerships and customer engagements position traceless materials GmbH as a leading innovator in sustainable materials, particularly in the packaging and fashion sectors. Collaborating with industry leaders like Mondi and OTTO enhances the company's credibility and market reach, facilitating the adoption of traceless® materials in mainstream applications.

    Technology Advancements and Scaling:

    • Mondi Partnership: The collaboration with Mondi provides traceless materials GmbH with access to Mondi's extensive research and development resources, accelerating the scaling of traceless® materials in the paper industry. (life-sciences-europe.com)
    • Lufthansa Collaboration: Testing traceless® materials in real-world airline operations offers valuable insights into the material's performance and durability, informing further technological refinements and scaling strategies. (chemeurope.com)
    • OTTO Pilot Project: The pilot project with OTTO serves as a testing ground for traceless® materials in the fashion packaging sector, providing data to optimize production processes and scale up manufacturing capabilities. (eu-startups.com)

    These collaborations collectively support traceless materials GmbH in advancing its technology, scaling production, and expanding its market presence, contributing to the company's mission of providing sustainable alternatives to conventional plastics.

    6 The Hiring and Company Growth

    Since receiving the EIC Accelerator funding on June 16, 2021, traceless materials GmbH has demonstrated significant growth and development.

    Current Team Size and Hiring Status:

    As of September 2023, traceless materials employed approximately 40 individuals. (finsmes.com) By November 2024, this number had increased to around 55 employees across four continents, including Europe, Africa, Asia, and North America. (leadiq.com) The company has been actively expanding its team to support its scaling efforts.

    Growth and Recent Hires:

    The substantial increase in team size reflects traceless materials' commitment to scaling its operations. In September 2023, the company secured €36.6 million in Series A funding, led by UB Forest Industry Green Growth Fund and SWEN Capital Partners' Blue Ocean Fund, to expand production capabilities. (finsmes.com) This funding is intended to support the construction of a demonstration plant in Hamburg, marking the first industrial-scale implementation of their innovative biomaterial technology. (chemeurope.com)

    Key Positions and Management Changes:

    While specific details about recent key hires are not publicly disclosed, the company's expansion suggests the addition of professionals across various departments to support scaling efforts. Notably, co-founder and CEO Dr. Anne Lamp has been actively involved in representing the company at significant industry events, such as the Chemistry Summit at the German Chancellery, highlighting the company's growing influence in the sector. (startupport.de)

    Implications for the Company's Future:

    The strategic hiring and scaling initiatives position traceless materials to effectively implement its technology on an industrial scale, aiming to replace conventional plastics and contribute to environmental sustainability. The recent funding and team expansion are critical steps toward achieving these objectives, enabling the company to meet increasing demand and drive the green transformation of the industry.

    7 The Media Features and Publications

    Since receiving the EIC Accelerator funding on June 16, 2021, traceless materials GmbH has been featured in various media outlets, participated in notable events, and engaged in significant partnerships. Below is a summary of their activities and media coverage:

    Media Features:

    • April 17, 2024: Featured on the Planetary Business Podcast, discussing the challenges of implementing sustainable practices in large corporations and the role of traceless materials in promoting natural solutions. (traceless.eu)
    • March 7, 2024: Announced the establishment of their first large-scale production plant in Hamburg-Harburg, marking a significant milestone in scaling their innovative biomaterial technology. (traceless.eu)
    • January 26, 2024: Highlighted in the film "Plastic Fantastic," addressing the global issue of plastic pollution and showcasing traceless materials' contributions to sustainable solutions. (traceless.eu)
    • November 9, 2023: Featured in the Science-TV show "Galileo," discussing the science behind their biomaterial and its potential impact on reducing plastic waste. (traceless.eu)
    • December 5, 2022: Recognized as one of the winners of the Next Economy Award, acknowledging their innovative approach to sustainable materials. (traceless.eu)

    Publications:

    • September 25, 2023: Silicon Canals reported on traceless materials securing €36.6 million in Series A funding to expand their production capabilities and implement their technology on an industrial scale. (siliconcanals.com)
    • June 23, 2022: Bioökonomie.de highlighted traceless materials' nomination for the German Founder Award 2022, recognizing their innovative approach to replacing plastic with biodegradable materials. (biooekonomie.de)
    • September 9, 2022: Yumda.com covered traceless materials' nomination for the German Founders Award 2022 in the StartUp category, emphasizing their commitment to sustainability and innovation. (yumda.com)

    Podcasts and Interviews:

  • April 17, 2024: Anne Lamp, CEO of traceless materials, appeared on the Planetary Business Podcast, discussing the challenges and opportunities in implementing sustainable practices within large corporations. (traceless.eu)

    • Conferences and Events:

    • October 1, 2024: Participated in FACHPACK 2024 in Nürnberg and IAAPA Expo Europe 2024 in Vienna, showcasing their sustainable materials to industry professionals. (traceless.eu)
    • June 18, 2024: Announced a partnership with Mondi Group to scale natural, regenerative solutions in paper coating, highlighting their commitment to sustainable practices in the packaging industry. (traceless.eu)
    • May 16, 2024: Attended London's Rethinking Materials Summit, engaging with fellow innovators to discuss advancements in sustainable materials. (traceless.eu)

    Event Involvement:

    • January 9, 2025: Hosted a visit from Michael Kellner, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action, to their demonstration plant construction site, emphasizing governmental support for their initiatives. (traceless.eu)
    • April 26, 2024: Participated in the Skillbased offering new momentum for the working world event, discussing the role of sustainable materials in modern industries. (traceless.eu)

    These activities and media features underscore traceless materials GmbH's ongoing commitment to innovation and sustainability in the materials industry.

    EIC Accelerator Winner - 2021