Scaling Circular Solutions: Why Access to the Right Capital and Partners Matters

In the last mile of today’s cold chain, standard single-use plastic encased gel packs are among the biggest sources of waste. With a lack of recovery pathways, the vast majority are discarded in landfill or end up contaminating recycling streams. The challenge lies in what the gel packs are made of: often single-use, non-curbside recyclable low-density polyethylene (LDPE), and a petroleum derivative for the gel.

Yet the growth of industries that are dependent on the cold chain––such as meal kit delivery services––are now facing upcoming Extended Producer Responsibility and “Truth in Labeling” regulations. With these shifts comes an increasing demand for less wasteful alternatives, and a new wave of sustainable cold chain solutions for perishables.

Enter Minus Works, a manufacturing and technology company developing circular solutions to shift the cold chain from linear to circular systems. In 2023, as the Series A startup was building products to reduce waste in the shipping of perishables, clear market demand brought the company to their next phase of growth. But to support this growth and disrupt the cold chain industry, the company required capital and a platform to scale its solution and impact.

Closed Loop Partners’ catalytic private credit group, the Closed Loop Infrastructure Group, having invested heavily in solutions across material collection, sortation, processing, end manufacturing and enabling technology, saw a key opportunity to advance circularity for this industry. Through its platform––an investment firm, innovation center and operating group––Closed Loop Partners is positioned to provide capital, expertise and access to an extensive network spanning entrepreneurs, industry experts, global companies, financial institutions and municipalities. The Closed Loop Infrastructure Group, backed by several of the world’s largest retailers, corporate foundations, industry associations, materials science and consumer goods companies, deployed growth capital––particularly, catalytic debt financing––to accelerate Minus Works’ growth.

Minus Works’ solution aligned with the Infrastructure Group’s mandate. Their alternative gel packs, the BRiQ smarter coolant, used recycled content paper and a compostable gel interior, serving as a non-toxic, circular alternative to single-use plastic wrapped gel packs. By using a recycled fiber casing for their product, Minus Works created a new end market for recycled paper, driving the demand pull-through needed to improve the quality and quantity of materials kept in circulation across North America. Additionally, with freezing co-located at the gel manufacturing site, the company also reduces the required production space by 80%, in turn resulting in lower costs and emissions associated with transportation.

Following its investment, Closed Loop Partners’ Infrastructure Group worked closely with Minus Works, exploring opportunities to refine the product and ensure its circularity at scale. Through its connection to Closed Loop Partners’ larger network, Minus Works was also able to identify alternative financing options for growth that could complement the debt financing they received from Closed Loop Partners.

With funding from Closed Loop Partners and other strategic investors, Minus Works positioned themselves for scale. One year later in October 2024, Minus Works announced their acquisition by Nordic Cold Chain Solutions, a leading provider of cold chain solutions, to further scale their technology and integrate their business within a larger platform of cold chain solutions. This acquisition represents not only a significant milestone in Minus Works’ growth and the important role of catalytic capital––but also signals the inherent value of businesses focusing on circular economy.

As more industries and supply chains demand greater resource efficiency and solutions that reduce waste and emissions, circular economy infrastructure and technologies will be pivotal. Catalytic capital will continue to play an important role in the growth of circular economy solutions. Its ability to accelerate and de-risk the development of high-impact projects and companies opens opportunities to attract additional forms of traditional financing that can bolster growth.

Closed Loop Partners’ Infrastructure Group, building on Closed Loop Partners’ 10-year track record, continues to deploy a flexible mix of financing solutions––such as secured and unsecured loans and mezzanine debt, or catalytic equity financing––supporting companies, cities and projects that need access to large pools of capital. Through a platform of support, we aim to transform industries, keep more materials in circulation and accelerate the transition to a circular economy.

To learn more about Closed Loop Partners’ Infrastructure Group and apply for funding, visit here.

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