Collateral Good, a climate-first Venture Capital platform based in Zürich, has unveiled an ambitious strategy focused on sustainable fashion, with significant financial backing from the renowned global fashion company, HUGO BOSS. The launch of this venture comes with a formidable target size of €100 million, aiming to spearhead global investments in innovation and technology dedicated to propelling the textile and fashion industry towards sustainability.
The textile and fashion industry currently contributes to over 8 percent of global greenhouse gas emissions, in addition to the extensive use of water and chemicals. In response to these environmental challenges, the Collateral Good Sustainable Fashion fund is positioned to play a transformative role. With an initial funding range of €1 to 3 million per startup, the fund is set to support 20 to 25 innovative ventures across the entire fashion value and supply chain.
Collateral Good's Holistic Approach and Martin Ott's Leadership Transforming the Fashion Industry
The fund's investment focus spans diverse areas, including the recycling of textiles, utilization of upcycled raw materials, development of novel dyeing materials and processes, and enhancing supply chain transparency. This holistic approach addresses the multifaceted challenges faced by the industry, offering a comprehensive solution to mitigate its environmental impact.
Leading the charge is Martin Ott, the former Managing Director for Adidas Ventures, who heads the experienced investment team. The Collateral Good Sustainable Fashion fund has not only secured backing from HUGO BOSS but has also attracted interest from esteemed family offices, asset managers, and institutional investors, underscoring the widespread recognition of the fund's potential impact.
In addition, the company works constantly on implementing material strategies, collaborating with international initiatives such as Cotton made in Africa (CmiA) and the Leather Working Group (LWG), and maintaining close partnerships with its suppliers.
HUGO BOSS and Collateral Good's Pioneering Partnership in Fashion Innovation
CEO Daniel Grieder articulates HUGO BOSS's dedication to the pioneering initiative, expressing excitement about the collaboration with Collateral Good, a distinguished and seasoned Venture Capital Investor in Sustainability. The goal is to support cutting-edge technologies and innovations that promote sustainability in the fashion industry, with a focus on integrating these advancements into products and processes on a large scale. The overarching aim is to expedite the shift toward a more sustainable fashion system, creating fresh opportunities for the industry and its stakeholders.
Michael Kleindl, Founder and Managing Partner of Collateral Good, expresses his enthusiasm, underscoring the importance of HUGO BOSS as a lead investor. He emphasizes the excitement in announcing HUGO BOSS as a key investor in Collateral Good Ventures Fashion I, citing them as the ideal partner in their mission to decarbonize the fashion industry.
With this strategic alliance between Collateral Good and HUGO BOSS, the fashion industry is poised to witness a paradigm shift towards sustainability, driven by cutting-edge technologies and innovative solutions. The fund's commitment to fostering positive change aligns with the urgent need for a more environmentally conscious approach within the global fashion landscape.n