The Leipzig-based chemistry startup aevoloop has raised around €3.25 million in a Seed investment round, together with just under €5 million in funding from to accelerate the market launch of its circular technology.
The public funding is co-financed by the European Regional Development Fund (ERDF) and the Free State of Saxony as part of an R&D collaborative project grant from the Sächsische Aufbaubank (SAB). It is provided under the “Saxy Plastics” project, in which aevoloop is cooperating with the Leibniz Institute of Polymer Research, Leipzig University and the Center for the Transformation of Chemistry (CTC). Alongside lead investor Circulate Capital, Positron Ventures and bmp Ventures via the IBG Innovationsfonds (Innovation Fund) are also investing.
“Plastic is not fundamentally bad – only the way we handle it,” says Dr Manuel Häußler, Co-founder and scientific lead at aevoloop. “With our technology, we make plastics fully recyclable. In doing so, we combine the performance of conventional plastics with true circularity. Our goal is a world in which sustainable plastic can be used endlessly – without waste and without squandering.”
This funding round enters a 2025 European landscape in which circular-plastics and sustainable-materials ventures are increasingly attracting capital.
In the UK, Epoch Biodesign secured €17 million in Series A funding to expand its enzyme-based recycling platform, while Dutch firm Xycle obtained investment for a chemical-recycling facility in Rotterdam. In Germany, VYTAL Global raised €14.2 million to scale its reusable-packaging infrastructure, and CYNiO, located in the broader Leipzig region, attracted over €2 million for CO₂-based speciality chemicals.
This pattern underscores Germany’s growing concentration of activity in sustainable-chemistry innovation. Within this context, aevoloop’s combination of private Seed capital and significant public co-funding positions it as part of a pan-European shift towards circular polymer technologies that bridge industrial scalability with environmental performance.
Wolfgang Hafenmayer, founding partner of lead investor Circulate Capital, adds: “aevoloop’s technology is a significant advance for the circular economy in polyolefins. For the first time, we have a true material alternative – without the compromises that other solutions entail. It’s precisely this kind of scalable innovation that can drive a systemic shift across the entire plastic value chain.”
Founded in 2024, aevoloop has developed a patented plastic circular technology. It enables chemically recyclable and biodegradable plastics that can be fully reused without any loss of quality.
In this way, aevoloop combines the performance of conventional plastics with true circularity and enables upcycling instead of downcycling – for sustainable packaging, films, injection-moulded parts and textiles.
This enables high-performance, chemically recyclable and biodegradable plastics and, for the first time, combines the advantages of conventional polymer materials with true circularity.
The startup replaces individual links in conventional polyethylene or polypropylene chains with bonds that can be selectively opened – through a kind of “predetermined breaking point.” They reprotedly retain all properties in use, but at the end of their life cycle they can be chemically broken down into their basic components and processed into new plastic.
This can be used like conventional polyolefins and, unlike other sustainable plastics, is not limited to niche applications. The biodegradability of these novel plastics also offers, in the long term, a solution to the microplastics problem.
The underlying technology can be used immediately on existing extruders and injection-moulding machines. In addition, production is comparatively cost-effective – purely bio-based alternatives are often significantly more expensive.
Read the orginal article: https://www.eu-startups.com/2025/10/germanys-aevoloop-backs-circular-plastics-innovation-with-e8-million-boost-to-tackle-waste-and-microplastics/
