Amsterdam-based ChainCraft, a company that develops and exploits proprietary fermentation processes to produce biochemicals from organic waste, announced on Tuesday that it has raised €11M in a fresh round of funding.
ChainCraft uses an inventive fermentation method to replace fossil and palm oil-based compounds with circular chemicals made from food waste.
The company says it will use the funds to build a factory on an industrial scale and quicken expansion plans at its current demo facility in Amsterdam.
Producing biochemicals from organic waste
Founded in 2010 by Niels van Stralen, ChainCraft claims that biobased chemistry can be circular and cost-competitive. It helps industries move away from fossil and palm oil with biobased chemicals made from food waste.
The company’s first product range, Medium Chain Fatty Acids (MCFA), can be used in existing and new applications in animal feed, lubricants, plasticisers, polymers, coatings, and flavours and fragrances. The main product, the C6 fatty acid Caproic Acid, can serve as an important intermediate for a C6 chemistry platform.
Recently, ChainCraft announced a partnership with animal feed company Agrifirm for the purchase of circular fatty acids produced in the demo factory. The company says it will soon reach other purchase agreements with partners in the chemical and animal feed industries, as well as for demonstration and large-scale facilities.
Investors in this round
The round saw investment from Convent Capital, and existing investors Shift Invest, Horizon 3 and PDENH.
Founded in 2011, Convent Capital is a Dutch-based investment firm that backs SMEs in the Benelux region. The firm’s new fund, Agro Food Growth Fund, offers growth financing to sustainable and creative businesses in the agri and food industries.
Founded in 2009, SHIFT Invest is a Dutch impact venture capital fund that invests in innovations related to food & agriculture, green industries, energy transition, and sustainable mobility & logistics. It backs startups that are achieving a positive environmental impact and financial return.
PDENH is an investment fund with €85M from the Province of North Holland. It makes investments in “cutting-edge” and sustainable businesses. The firm backs businesses and initiatives with a strong emphasis on the circular economy, sustainable transportation, and the energy transition. Business operations must be conducted in Noord-Holland in order for a PDENH investment to be considered, and PDENH investments must provide financial, economic, and social results.