Circular startups can succeed with a strong ecosystem

Complex regulations, difficult-to-predict waste streams, high capital requirements, and dependence on many supply chain partners often leave promising circular innovations stuck in the pilot phase. This is one of the main findings of research conducted by the Brabantse Ontwikkelings Maatschappij into what is needed for circular startups to scale successfully.

With the announced European Circular Economy Act, circular policy is once again high on the European agenda. The European Commission is working on a proposal expected to be presented in 2026 that should provide clearer, better-aligned conditions for the reuse of raw materials. This policy development highlights a broader issue: circular innovation can only scale if the system evolves alongside it.

The study, which examined practical cases of residual-stream valorization companies such as PeelPioneers, Revyve, Recell, Fiber Foods, NoPalm Ingredients, TORWASH, and UBQ Materials, shows that circular startups play a key role in the transition to a sustainable economy, but consistently encounter major barriers. Support from a strong ecosystem and government authorities is crucial for these companies.

Below are the main conclusions from the study:

Make the circular economy a strategic priority

Circularity could reduce Dutch CO₂ emissions by approximately 7.2 million tons per year, increase raw material security through local sourcing, and reduce dependence on global supply chains, potentially increasing European GDP by as much as 7 percentage points by 2030.

Increase the competitiveness of circular startups

Circular startups are crucial accelerators of the circular economy because they apply more disruptive circular strategies than established companies. At the same time, competitiveness compared to linear alternatives remains a challenge, but also a prerequisite for growth. The study identifies four segments of success factors that can strengthen the competitiveness of residual-stream valorization propositions: market, process, feedstock, and ecosystem.

Stimulate collaboration within broad ecosystems

Scaling strongly depends on collaboration within a broad ecosystem of customers, suppliers, knowledge institutions, investors, accelerators, media organizations, governments, and industry associations. Strategic involvement from these stakeholders is essential to overcome barriers.

Regulatory change is necessary

In addition to ecosystem support, structural regulatory changes are needed. Policy frameworks must evolve with measures such as true pricing and adapted End-of-Waste criteria. Investors also need financing models that match capital-intensive, long-term propositions.