Cologne-based METYCLE, a B2B marketplace for global scrap and recycled metal trading, announced on Tuesday that it has secured €1.5M in a pre-Seed round of funding.
The round was led by marketplace-focused Warsaw-based VC firm Market One Capital and Amsterdam-based Dutch Founders Fund (DFF).
The round also saw participation from Angel investors Tom Bird, ambassador and veteran of the global recycling industry, and Louis Pfitzner, entrepreneur and marketplace investor.
Supporting the transition to a carbon-neutral world
According to METYCLE, more than $600B is spent on the worldwide scrap metal industry each year. Infrastructural projects and the shift to a green economy rely heavily on metals. Because of this, the demand for metals is growing.
However, the production of primary metals is extremely CO2 intensive, which accounts for more than 3.6 billion tons – or more than 10 per cent – of the world’s yearly direct CO2 emissions, despite the fact that it helps to decrease CO2 emissions in its uses.
On the other hand, compared to most other materials, metals have a major benefit as they can be recycled indefinitely without losing quality and that too with a 60–95 per cent lower carbon footprint.
This is where METYCLE looks to operate.
Founded in 2022 by Rafael Suchan and Sebastian Brenner, METYCLE aims to simplify access to metal waste and recycled metals for the manufacturing supply chain, and capitalise on CO2 savings across the value chain.
The Germany-based startup offers a trading platform that enables digital, fast, and efficient trade of secondary metals.
The platform directly connects buyers and sellers of scrap metal without middlemen. Direct negotiations result in better prices, better margins, and time benefits for both buyers and vendors.
Brenner says, “For suppliers, METYCLE takes the pain of negotiating, monitoring payment and logistics flows. For buyers, we give access to prime quality material, payment options in local currency and at payment terms.”
The two co-founders of METYCLE bring years of expertise in the metal recycling sector with a track record of creating and growing B2B marketplaces.
Capital utilisation
METYCLE claims to keep extending its service options in financing and hedging for buyers, as well as increasing its offering in product quality assurance.
To deliver a superior customer experience, the company says it will appoint the “best-in-class” foreign metal trading team, along with software product and tech teams.
Within the next 12 months, METYCLE expects to employ about 20 new experts in total.
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