Funding of circular businesses starts with a different ecosystem

The transition to a circular economy requires different entrepreneurs and different financing. During the conference Circular Business in Transition, organized by Invest-NL, Het Groene Brein and three universities of applied sciences, one conclusion was central: circular enterprises only succeed if the ecosystem in which they operate also changes.

Circular entrepreneurs work with business models that focus on impact, reuse, and collaboration. But they are still often judged through a linear lens, focused on growth, profit, and scale. As keynote speaker Elisa Achterberg from cise.network stated: “Funders remain attached to outdated structures. Alternative metrics, cashflow-based financing, and revenue models where supply chain partners share financially are essential.”

Success begins with the ecosystem

Circular companies can only succeed if they are part of a Minimum Viable Ecosystem: a powerful network that aims to create value together across the entire chain. This collaboration – between startups, established companies and financiers – needs to be organised more consciously.

Time for a different way of guiding

The support for entrepreneurs also needs to change. Existing ‘venture building methods’ fall short if they do not consider impact, circularity and systemic change. Support for circular entrepreneurs should align with their reality: experimenting, collaborating and navigating in immature markets.

From theory to practice

During five breakout sessions, more than 150 participants worked on concrete issues faced by circular entrepreneurs in sectors including textiles, installation technology and street furniture. The results show that it works: supply chains started moving, new collaborations emerged, and follow-up actions have already been initiated.

At Invest-NL we see it as our mission to break down these barriers and enable the transition to a circular economy. We do this through suitable financing solutions, bringing the right parties together, and strengthening supply chain collaboration. This conference marked a new step in that process.