Funding the Future 2025: Scaling with a license – and the finance – to operate

Breakout session on Permits

It sounds like a formality — but for first-of-a-kind (FOAK) facilities, it can be a structural blocker. Daan Molenaar from DCMR shared what regulators actually need from startups, and why they often don’t get it in time. Many entrepreneurs lack knowledge on the permit process, hold unrealistic expectations, or don’t yet know the specifics of their process — yet a permit is needed to signal “readiness” to investors. Grassa, a Circular Factory participant, illustrated the issue. They aim to build a biorefinery by 2027 but haven’t secured a location yet. Permitting is a chicken-and-egg dilemma: they can’t raise money without a permit, and can’t start applying for a permit without a site and the promise of funding.

What’s needed:

• Earlier and clearer engagement between startups and authorities
• National tools to offer “pre-permit” documentation for investors (e.g. statement of preliminary approval)
• Institutional support or subsidies during the costly “license to operate” phase (currently unsupported unlike R&D)
• Investors to flag permitting timelines and risks early, so they can co-create stepwise funding models

Breakout session on CAPEX-light

Outsourcing production is often framed as the holy grail of de-risking capital-intensive scale-ups. But is it? Two cases showed the nuance. Vivici, which produces dairy proteins via precision fermentation, chose a contract manufacturing strategy from day one. Their mature tech, strong IP protection (via patents + trade secrets), and board support made this a smart, capital-light move. In contrast, Revyve, which valorises brewers’ yeast using microorganisms, initially outsourced too — but encountered delays, rigid processes, and friction with innovation speed. Ultimately, they pivoted toward their own modular production facility to ensure control and scalability.

What’s needed:

• • Startups: Careful matching of production strategy to technical readiness and commercial maturity
  • Financiers: Capital models that reflect the long build-out timelines of industrial production — especially in biobased and fermentation sectors, where VC timelines often don’t align

Why circular pioneers can’t scale alone — and how the ecosystem can step up

Scaling circular industry isn’t just about tech or traction — it’s about navigating deeply systemic hurdles. From permitting to production, scale-ups need capital that matches their timelines, policies that match their realities, and support that spans the messy middle between pilot and plant. At Circular Factory, we’ll keep bringing these challenges to light — in our program, at our events, and in dialogue with investors, policymakers and fellow ecosystem builders. 

Many thanks to everyone who joined, listened, questioned and contributed!

Want to learn more about the cases, the sessions or the Circular Factory program? Get in touch with Circular Factory’s Community & Innovation Lead William Vuijk via w.vuijk@bluecity.nl.