Suzano announced that it will initially allocate US$ 70 million to Suzano Ventures, a fund for investment and promotion of startups. The company’s corporate venture capital (CVC), which integrates the strategy of building a global platform to stimulate open innovation in the low carbon area, will focus on businesses from the laboratory stage (pre-seed) to the most structured (series A), which include solutions related to the forest-based bioeconomy.
Suzano has four areas of interest: new materials derived from eucalyptus biomass, sustainable packaging, AgriTech and carbon. “With Suzano Ventures, we want to accelerate the company’s innovation process”, explains carbon business and corporate venture director Julio Ramundo.
According to the executive, there is no deadline or resource target for the CVC, which may receive more contributions in the future. In addition to the US$ 70 million, the company aims to close at least one investment this year and Suzano Venture is already analyzing an English startup in the area of new materials.
“We believe that, in the coming months, there will be a recurring flow of opportunities”, highlights Ramundo. The investments must represent participations of 10% to 40% in the startups, without the acquisition of control, since the pulp company’s proposal is to become a partner. “We do not want to have a dominant or arrogant position, but for Suzano to be the preferred partner of these ecosystems in the world”.
Suzano Ventures is expected to launch the first competition for project selection in August and will make recurring calls. In the coming months, the idea is to close agreements with accelerators for startups in the “pre-seed” stage.
The company plans to invest in around 15 to 15 seed and series A projects and between 15 and 20 pre-seed projects in Brazil and abroad.
Suzano already has a robust research and development base and an international presence, having made direct investments in startups. Futuragene, a biotechnology company focused on forest improvement, is now a wholly owned subsidiary of the company.
The Finnish company Spinnova has developed a technology for producing textile fibers from cellulose and wood residues without the use of harmful chemicals. The European company went public in 2021, valued at 390 million euros.
