Backed by an all-star roster of strategic advisors and investors including actor Leonardo DiCaprio and circular economy pioneer William McDonough, a fledgling venture capital firm just announced the final close of its first $45 million fund. Called Regeneration.VC, the firm focuses on seed and series A investments in circular and regenerative approaches to consumer industries.
Why the focus on this segment? According to Smith, consumer supply chain accounts for 45% of global emissions. At the same time, climate- friendly apparel and consumer packaged goods provide a $4.5 trillion business opportunity, he says. The fund focuses on three areas: design (packaging and materials), use (products and brands) and reuse (reverse logistics and marketplaces) .
“Consumers have power,” says Michael Smith, general partner and co-founder. “We can vastly improve the planet through our buying decisions.”
A Circular Technosphere
A significant inspiration for the fund came from McDonough’s work on the circular economy— reusing or extending the life of materials in products. (McDonough is now a strategic advisor). For the fund, that translates into investing in companies making or using such materials, as well as upcycling, repairing and reselling stuff.
The process involves a “circular technosphere”, in which technology allows materials to move and circulate throughout the supply chain, and a “regenerative biosphere”, or natural systems for absorbing carbon, like trees—a carbon cycle flow, during which things are returned to the earth, regenerate the soil and draw down atmospheric carbon. “We’re marrying technology with biological processes,” says Smith.
For Smith and Dan Fishman, co-founder and general partner, a variety of changes in regulations and consumer sentiment are leading to big changes in the behavior of big brands. Already, numerous major corporations, from Nike to Unilever, are committing to circular strategies by 2030. And the EU recently came out with regulations regarding circular economy plans, Plus multiple states in the U.S. are working on circular-economy related rules. To keep up with all this, ”Big corporations know they have to do something,” says Smith. “And this is a meaningful way to engage in that process.”
Michael Smith and Dan Fishman
Carlos Lopez
As for DiCaprio, he’s both a strategic advisor and investor, serving as what Smith describes as a “sounding board” for the fund. Smith says he can’t reveal how much DiCaprio has invested, but describes him as “a major investor”. According to Smith, he and Fishman have known DiCaprio for a while. They approached him early on, about two years ago, and, says Smith, he signed on early as an investor.
Supercharging Early-Stage Ventures
The partners’ assessment of the investing landscape led them to early stage ventures. During their research, they found that most investment in the sector currently targets later-stage companies. What was lacking was money for businesses just getting market acceptance and revenues, but needing capital and expert advice to get to the next level. “We come on to supercharge that,” says Smith. They put together their basic framework in Nov. 2019 and started raising capital in Feb. 2021.
Regeneration has invested in five startups already, starting in April 2021, with a sixth to be announced soon. That includes such companies as Cruz Foam, which turns aquaculture processing waste streams into a certified compostable polystyrene alternative, and Arrive, which provides rental- and resale-as-a-service to global retailers and brands. The plan is to invest in about 17 investments, with a typical investment size of $1 million at a seed stage and $1.5 million to $3 million for Series A. Half of the fund’s capital will go to initial investments, with the rest for follow-on investments as companies grow.
Ultimately, “We want to see dozens of funds doing what we’re doing,” says Smith. “We’re planting our flag with the idea that this is a place you should care about.”
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
