Metycle raises $5M in Seed round to expand scrap metal trading platform

Cologne-based trading platform for scrap and recycled metals startup Metycle secures $5 million in Seed funding for expansion and tech development.
Metycle raises $5M in Seed round to expand scrap metal trading platform

Metycle, a cologne-based trading platform for scrap and recycled metals has announced the successful close of a $5 million in a Seed funding round. According to the startup, the new investment will allow the company to expand to new geographies as it continues to further develop its technology and AI-based enhanced quality control measures.

The €1.5 million pre-seed round was led by Market One Capital and DFF, and included participation from angel investors longtime recycling metals industry veteran Tom Bird and Caya co-founder Louis Pfitzner.

With Metycle, co-founders Sebastian Brenner and Rafael Suchan are taking their long experience working in Asia, China specifically, and addressing the $600+ billion global market that is the secondary metals, or scrap, industry.

According to Metcycle, the production of primary metals results in 3.6 billion tonnes of CO² emissions on an annual basis, recycled or scrap metals can serve the same job as their primary counterparts, without a decline in quality, with a CO² footprint reduction of 60-95 percent.

Where Metcycle fits into the picture is by providing a digitised and efficient marketplace aimed at facilitating the trading of these materials. Specifically when the company notes that 70 percent of all global metal smelting capacities are located in Asia, the canvas starts to become clear when considering the founders combined 16 years of experience working in the area.

To be certain, Metycle is a brokerage platform that facilitates trade between buyers and sellers. The startup is not involved in the trade between buyers and sellers. The company's financial service provider facilitates each payment and holds the funds secure in an individual escrow account until the goods have been delivered.

Project A led Metycle’s Seed funding round with Partech, and existing investors Market One Capital and Dutch Founders Fund (DFF) participating. The round also saw the involvement of angel investors including GMH Group’s Anne-Marie Großmann, former CEO at Klöckner & Co. Gisbert Rühl, Flink’s Christoph Cordes, and Philipp Andernach of Antunnacum.

Lead image via Metcycle. Photo: Uncredited.

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