Welcome back to another episode of the EUVC Podcast, where we gather Europe’s venture family to share the stories, insights, and lessons that drive our ecosystem forward.
Today we welcome Enrique Alvarado Hablutzel, Co-founder and Chief Investment Officer of Chi Impact Capital, and Marvin Nusseck, Finance Lead at Circle Economy. Together they’re behind the landmark Circularity Gap Report, the reference point for tracking how much capital flows into the circular economy — and where it still falls short.
We dive into the latest data, why most money is still chasing recovery-phase solutions with the least systemic impact, the outdated risk models blocking capital flows, and how circularity can address not only climate but also geopolitics, competitiveness, and resource security.
🎧 Here’s what’s covered:
01:00 Why the Circularity Gap Report matters: tracking where capital really flows.
03:00 The numbers: From $10B in 2018 to $42B peak in 2021 — and why momentum slowed.
05:00 VC on the ground: Enrique on why linear models still attract most capital.
07:00 Where the money goes: 50% of flows target recovery, not design or use phases.
08:00 Geopolitics & resources: Why circularity = resource security in a multipolar world.
10:00 Cynics & excuses: Why “China won’t play along” isn’t a reason to sit out.
12:00 Linear risk models: Outdated finance ignores systemic and material risks.
15:00 What’s missing: Correctly pricing resources — recycled vs. virgin.
17:00 Investor levers: Bio-based chemicals, methanol, hydrogen as circular enablers.
20:00 Circularity as systemic lens: Tackling biodiversity, climate, and geopolitics together.
23:00 Local loops: Why Amsterdam and Dutch PP partnerships matter.
25:00 Misalignment: Money goes to transport, but construction offers far bigger impact.
26:00 The 7.2% economy: More than 90% of global materials are still in a linear economy.
You can watch the episode here or add it to your queue on Apple or Spotify 🎧 (chapters for easy navigation are available on both).
✍️ Show Notes
The Circularity Gap Report
Tracks capital flows into circular economy solutions worldwide.
Headline finding: capital flows are rising (2018: $10B → 2023: $28B) but peaked in 2021 at $42B.
Half of all money still goes to recovery-phase solutions (waste & recycling), which have the least systemic impact compared to design or use phases.
Why Venture Still Feels Linear
Enrique: most VC money still favors linear business models with software-style margins, not reuse, repair, or service models.
Circularity needs patient, mission-aligned capital and new ways to de-risk innovation.
Geopolitics & Resource Security
Marvin: resources are global, complex value chains (your phone contains minerals from across the world).
Circular loops = resource security and resilience against shocks like China halting exports.
Linear Risk Models
Financial institutions still rely on outdated risk models that ignore resource dependence.
Without factoring “linear risk” (the cost of staying in take–make–waste models), capital won’t shift.
Policy Levers & Pricing
Core issue: virgin materials remain cheaper than recycled ones.
Solutions: tax waste, subsidize recycled inputs, end subsidies for virgin extraction.
Where the Impact Lies
Construction and the built environment = huge circular impact potential, but underfunded.
Transportation attracts more money but has relatively lower systemic leverage.
The 7.2% Economy
Only 7.2% of global resources are cycled back into the economy.
90% of extracted materials = linear, wasted. A staggering loss of value and sustainability.
Systemic Lens
Circularity isn’t “another ESG buzzword” but a holistic framework that ties together biodiversity, climate, geopolitics, and industrial resilience.
💡 One-liner takeaway:
Circularity isn’t recycling — it’s systemic resilience. With 90% of resources still wasted, fixing finance and pricing is key to shifting capital into the loops that secure Europe’s future.
Want to learn how a top LP navigates the industry? Join us on September 18th at 1:00 PM CET for an exclusive AMA with Raida Daouk, founder & Managing Partner of Amkan Ventures, the only (so far) fund of funds dedicated to backing solo GPs.
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With over a decade of experience spanning banking, venture capital, and fund-of-funds investing, Raida Daouk is the Founder and Managing Partner of Amkan Ventures—the first solo GP-led fund of funds in the Gulf region. She has backed several emerging U.S. venture managers and is building a portfolio of early-stage tech funds. Her mission is to bridge Gulf-based family offices with high-performing, hard-to-access venture funds in the U.S., unlocking global opportunities for regional investors.
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