Withers tech advises Archipelago Eco Investors on warehoused investment into Waste Recognition platform Greyparrot AI

Firm News 08 July 2022 Experience: Technology
Venture Capital

Withers tech, the technology, life sciences and venture capital focused team at international law firm Withers, has advised client Archipelago Eco Investors on the first investment to be made through its Future of Plastics Fund (FPF), a new circular economy impact fund focused on plastics and climate. The investment is into GreyParrot, a cutting-edge Artificial Intelligence (AI) Waste Recognition System and Analytics Platform which will enable better sorting of plastics and other waste streams. (1)

The transaction has been “warehoused” for the FPF by the Accelerating Growth Fund Ltd (AGF), a subsidiary of climate action NGO WRAP, which has committed to invest into the Future of Plastics Fund.
The investment into GreyParrot is part of a £7.5m Series A investment round which will enable the company to grow and expand across the waste management sector, and into new waste streams Greyparrot AI is developing an innovative AI Waste Recognition System will automate waste composition analysis and the monitoring, auditing, and sorting of waste flows at scale around the world.

AGF’s investment will be ‘warehoused’ until FPF reaches its first close later this year and, with investment and support from AGF and other institutional investors, family offices and high net worth investors, FPF is targeting a final close of €100m in 2023. Following first close of FPF, AGF will transfer the investment to FPF as part of its commitment.

Archipelago Eco Investors has created FPF to provide catalytic venture capital investment into scalable technologies and solutions across the plastics economy, from packaging to textiles and e-commerce. An Article 9 Impact Fund, it will invest in a portfolio of SMEs to support upstream innovation in the production of plastics, as well as downstream solutions in the collection, sorting, cleaning and recycling of plastic products.

Withers tech partner Sarah Melaney comments: “This was a really innovative deal to be involved in, working at the cutting edge of both venture capital investment tools, as well as worldwide efforts to turn the corner on plastics waste. Through warehousing AGF’s investment we made it possible for FPF to commit to funding Greyparrot AI as part of the current investment round. This investment by Archipelago Eco Investors illustrates their approach to backing clean ventures that are breaking down barriers for plastics in the circular economy.”

The Withers tech team was led by Sarah, working alongside partner Rachel Hawkins, senior associate Neil Jones and associate Siraj Mahmood.

(1) – ‘Warehouse’ is a term commonly used to describe an investment made by a committed limited partner to a new fund which is still in formation, made on behalf of the new fund and intended to be transferred to the fund at some point in the future.