Germany’s Aevoloop Secures €8M To Advance Circular Plastics And Fight Waste

The public funding, supported by the European Regional Development Fund (ERDF) and the Free State of Saxony, comes under the “Saxy Plastics” project led by Sächsische Aufbaubank (SAB). aevoloop collaborates with the Leibniz Institute of Polymer Research, Leipzig University, and the Center for the Transformation of Chemistry (CTC).

Investors include Circulate Capital, Positron Ventures, and bmp Ventures through the IBG Innovationsfonds.

“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.”

The funding comes amid a strong wave of investment in circular plastics and sustainable materials across Europe in 2025.

UK-based Epoch Biodesign raised €17 million to expand its enzyme recycling platform, the Netherlands’ Xycle secured backing for a chemical-recycling plant in Rotterdam and Germany’s VYTAL Global raised €14.2 million to scale its reusable-packaging network. Nearby, CYNiO attracted over €2 million to produce CO₂-based specialty chemicals.

Germany is becoming a hub for sustainable chemistry, and Aevoloop is leading the charge. With backing from both private investors and public funding, the startup is helping Europe move toward circular plastics that are eco-friendly, fully recyclable and scalable for real-world industrial use.

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 created a patented circular-plastics technology that produces chemically recyclable and biodegradable materials without compromising quality.

By introducing smart “break points” into conventional polymer chains, aevoloop’s materials maintain full performance during use but can later be broken down into their base components and reused indefinitely.

This innovation merges the durability of traditional plastics with true circularity, enabling upcycling for packaging, films, molded parts, and textiles. The materials can be processed on existing machinery and are cost-efficient, offering a scalable, sustainable alternative that may also help address the microplastics challenge.

About Aevoloop

Aevoloop is redefining plastics with a new generation of materials that are fully recyclable, biodegradable and high-performance. By merging sustainability with versatility the company aims to replace conventional plastics with circular alternatives that maintain quality while reducing waste and environmental impact. Aevoloop GmbH rethinking plastics for a cleaner future.