Latin America. With the launch of Suzano Ventures, a global corporate venture capital initiative, Suzano will invest $70 million in a variety of businesses with the potential to revolutionize its sector and beyond.
Brazilian company Suzano, a global producer of hardwood pulp, is looking to address some of the world's most pressing environmental challenges.
The initiative will focus on companies operating in at least one of the four applications of the bioeconomy: improving the measurement and management of carbon capture, accelerating and maximizing agroforestry performance, developing new technologies and applications for pulp biomass, and creating more efficient pulp packaging from renewable sources.
"Suzano has created Suzano Ventures to offer support and financing to the growing ecosystem of entrepreneurs who are bringing new ideas to the bioeconomy and the broader environmental challenges we all face," said Julio Ramundo, director of Carbon Businesses and Corporate Ventures at Suzano.
"Suzano Ventures will provide financial and strategic support to these companies and, using Suzano's broader network and resources, will help accelerate sustainable solutions for the pulp sector and many others."
Investments will be allocated to companies in the initial and series A funding phase. Suzano Ventures will also have an accelerator program structure that will leverage solutions in the laboratory phase or seeking commercial validation (pre-seed).
Successes
Among its most recent successes is Spinnova, a Finnish company that has developed the technology to produce a highly sustainable textile fiber from wood pulp fiber. Production requires very little water, does not use fossil materials or waste.
Suzano's initial investment in Spinnova, made in 2017, was five million euros, followed by other investment rounds. In 2021, Spinnova floated the company in Nasdaq Helsinki's first northern growth market and had a market capitalization of €390 million at the time of listing.
Thus woodspin was formed, a joint venture between Suzano and Spinnova. It is currently building a plant that is expected to begin fiber production for global textile brands in 2022. Major fashion groups such as H&M, Adidas and Marimekko have already signed agreements with Woodspin to support the development of their materials.
Now, with Suzano Ventures, the company wants to scale similar projects and ensure greater structure and agility in the analysis of innovative projects and new start-ups seeking capital, which align with Suzano's areas of expertise.
Suzano's team of R&D experts operating in Brazil, North America, China and Israel will identify potential investments and a new dedicated Suzano Ventures team will be formed to work with partners to scale their ideas and operations.
