Cyclize receives 5 million euros in seed financing

Seed funding for Cyclize: New approaches in the chemical industry with 4.75 million euros. The money will go towards synthesis gas technology.

Munich, February 21, 2024 - The Stuttgart-based climate tech start-up Cyclize has successfully closed a seed financing round of 4.75 million euros. The financing round was led by UVC Partners, with participation from High-Tech Gründerfonds, Aurum Impact, UnternehmerTUM Funding for Innovators and other business angels. Cyclize, a spin-off from the University of Stuttgart, focuses on a technology for defossilization in the chemical industry.

"With our process, we are sending a signal for climate-neutral chemistry

Maike Lambarth, co-founder and CEO of Cyclize

The technology developed by Cyclize uses mixed plastic waste and CO2 as a starting material to produce synthesis gas. This synthesis gas serves as the basic building block for the production of high-quality chemicals as well as plastics, methanol, hydrogen and e-fuels. The aim is to reduce global industrial CO2 emissions that are produced when products such as plastics are recycled.

Maike Lambarth, co-founder and CEO of Cyclize, emphasizes the importance of the Cyclize plasma for climate-neutral chemistry. The process enables chemical companies to remain competitive and counter rising energy prices. Cyclize sees itself as contributing to the circular economy by recycling plastics and using the energy in these products to make the reforming process more efficient.

The Cyclize technology solves two major problems: Firstly, only nine percent of the plastic produced globally is recycled today. In addition, this plastic is not reused and ends up in landfills.

Amanda Birkenholz, lead investor

The financing round, led by UVC Partners, will enable Cyclize to scale up its plasma-based technology. This is intended to replace fossil resources with waste materials and contribute to net-zero production. The fresh capital will be used for test series with pilot customers as well as the further development and adaptation of the technology.

Amanda Birkenholz, lead investor, emphasizes that Cyclize is also tackling the challenge of the low recycling rate of plastic. By using the energy in plastic waste, companies can reduce costs and gain a decisive advantage, especially in light of the current energy price policy.

Successful spin-off from the University of Stuttgart

Cyclize, a spin-off from the University of Stuttgart, has specialized in the development of a technology for defossilization in the chemical industry. The process uses mixed plastic waste and CO2 as a starting material to produce synthesis gas - a gas mixture of carbon monoxide and hydrogen. This synthesis gas forms the basic building block for the production of high-quality chemicals as well as plastics, methanol, hydrogen and e-fuels.

In contrast to the previous linear use of fossil resources such as natural gas to produce synthesis gas, Cyclize relies on a plasma-based process. This not only enables efficient competitiveness with fossil synthesis gas, but also progress towards a circular economy for carbon. The aim is to avoid hundreds of megatons of CO2 per year by 2050. By using waste materials instead of fossil resources, Cyclize is thus helping to overcome the challenges of today's linear economy and make a sustainable contribution to reducing CO2 emissions.