Sustainability helps startups increase their valuation by up to 17%

According to an Amazon study, Spanish investors reward startups with a strong profile focused on sustainability. These investors, both venture capital and private equity, say that start-ups with strong sustainability credentials can get a valuation up to 17% higher, which represents an opportunity for those entrepreneurial people who are thinking of creating more sustainable products and businesses. Conversely, start-ups with poor sustainability credentials could see their valuation reduced by as much as 9%.

More than two in three investors surveyed (67%) say they have requested more details about a startup’s sustainability credentials in the last 12 months. in which they were considering investing, placing special focus on ensuring that they comply with the SDG (environmental, social and governance) commitments of their organization.

On the other hand, almost half (48%) of these investors acknowledges having turned down at least one funding opportunity start-ups in the last year, due to concerns related to their environmental impact. Asked about the most frequent reasons for discarding, investors mention concerns about the sustainability of their logistics throughout the supply chain, or about responsible waste management processes.

On the other hand, almost seven in ten investors (68%) consider that current and future regulation on SDGs is a brake when it comes to investing in start-ups focused on sustainability. In order to move forward, the vast majority of Spanish investors (85%) believe that new companies need more support to incorporate environmentally sustainable practices. 86% of the study participants acknowledge that more than half of the startups they evaluate lack the technology and knowledge necessary to operate more sustainably.

Amazon Sustainability Accelerator

The results of the study have been presented coinciding with the announcement of the 16 European startups that will participate in the second edition of the Amazon Sustainability Accelerator, an initiative of Amazon, the EIT Climate-KIC, Europe’s leading center for innovation on climate change, and WRAP , the UK’s leading climate action NGO.

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The accelerator is open to startups dedicated to create more sustainable consumer products and, for the first time, also to those that develop technologies that can help the industry to recycle more effectively and efficiently. The program has received more than 1,500 applications this year, and among the sixteen companies selected there are two based in Spain: the Catalan Infinite Athletic and the Majorcan, FUNQ.

The founders of Infinite Athletic set out to create the first infinitely recyclable garment in history. After more than two years of research, they managed to develop a technology never used before in the world of sports, which provided durability, resistance, elasticity and softness to the touch, as well as comfort for practicing sports. All this from the strings that were discarded from the rackets, with no other materials than the polyester itself so that they could always be recycled. Its co-founder, Francois Devycomments: “At Infinite Athletic, our mission is to solve the textile business model through an innovative double circularity process. Participating in the Amazon Sustainability Accelerator will help us scale this solution, so we can all play for the planet.”

For their part, the creators of FUNQ set themselves the challenge of finding an alternative to bottled drinks, allowing anyone to turn tap water into a great-tasting, healthy and sustainable soft drink. To do this, they developed a 100% natural and low-sugar syrup. Its co-founder and CEO, michael schwarzcomments: «At FUNQ we thirst for change. We are convinced that the beverage industry needs to be reimagined: the idea is to replace plastic bottled drinks with your own drink, mixed at home with tap water. We are very excited to be part of the Amazon Sustainability Accelerator as we truly believe that this idea has the potential to not only transform the beverage industry with a more complex tasting product made from natural ingredients, but also have a positive impact on our planet, generating a more responsible consumption”.

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