LONDON–(BUSINESS WIRE)–Queen of Raw, Inc., a New York-based climate fintech company specializing in recovering value from excess inventory, has raised funds from Future Planet Capital (“FPC”), the investor international venture and impact capital firm with approximately $400 million in committed capital and a portfolio including 23andMe, Vaccitech and Tokamak.
Every year, $288 billion in excess inventory ends up as waste in landfills, burned or laid to rest in warehouses. Queen of Raw makes it a source of income through sustainable solutions. Its flagship SaaS software, Materia MX, was stealthily released more than a year ago in response to growing supply chain inefficiencies, rising prices and excess inventory that has increased amid the pandemic. These market forces deplete corporate profits.
Businesses using Materia MX can digitally manage, resell, and recycle excess inventory from one centralized location, with end-to-end automation and cloud reporting. Business losses are recouped and capital is preserved for deployment during downturns. No investment required.
For its customers, including some of the world’s largest Fortune 500 companies, the amount of wasted materials represents up to 15% or more of their bottom line. “At This Volume” says Stephanie Benedetto, the founder and CEO of Queen of Raw, “Waste is not only irresponsible to the environment, it’s a financial risk and a problem for the CFO.” An example of the impact: In just a few weeks, by leveraging the software, a customer saved $14 million in inventory and storage costs, generating revenue by recycling 10 tons of excess material into Asia and diverting 95% of landfills and incineration.
Stephanie Benedetto’s family have been in the textile business for over 100 years and have witnessed the waste that can result, with the average tee shirt requiring 700 gallons of water to produce. According to the United Nations, the textile industry is the world’s second largest polluter of clean water globally. Through its initiatives, Queen of Raw has already saved over 1 billion gallons of water – enough clean water for 1.43 million people around the world to drink for 3 years.
How do you reliably measure impact? Together with the CTO and co-founder of Queen of Raw, Phil Derasmo, they integrated a reporting tool into the software. Launched in 2022, consumers and businesses can see their waste footprint. Proprietary algorithms based on scientific standards have been developed with data scientists from the Massachusetts Institute of Technology (“MIT”) Solve program. When a company resells and recycles excess inventory, the algorithms measure the environmental and economic impacts on the chain. Everything is backed up by recording and proof. By communicating these circular economy efforts to end consumers, a Fortune 500 customer increased their conversion rate by 3 times.
Prior to joining Queen of Raw, Phil Derasmo spent more than 15 years building solutions for large organizations, from the Department of Environmental Protection to Citi. He designed Queen of Raw’s blockchain and machine learning-based technology to intelligently address business needs, turn pollution into profit, and solve the global water crisis.
Ed Phillips, partner at Future Planet Capital, said: “The textile industry is responsible for around 35% of microplastics in the ocean and up to 10% of global CO2 production. It’s rare to find smart founders like Stephanie and Phil who tackle a challenge so big, so elegantly. Queen of Raw’s SaaS solution has the potential to clean up supply chains, drastically reduce ocean pollution, and create a circular economy in unfinished goods. Beyond that, the opportunity to move to other waste streams is significant. »
This investment advances FPC’s Blue Ocean strategy, announced earlier this year in partnership with the Prince Albert II of Monaco Foundation and the Prince’s Government. Future Planet Capital first identified Queen of Raw as a high-growth, high-impact company profitably tackling the blue economy through its partnership with MIT Solve.
Participation in the deal included True Wealth Ventures, a board member of Queen of Raw, a venture capital fund specializing in women-led businesses that improve environmental or human health. Queen of Raw has raised enough to reach profitability and beyond, signed software deals with three of the world’s top 5 apparel and footwear brands, and expanded operations, with a team on the ground in the United States , Europe and Asia.
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About Queen of Raw
With Queen of Raw’s no-code software, called Materia MX, companies meet regulatory requirements, reduce inventory loss, and create a more financially successful business at the product and operational level. Its customers have seen a cost reduction of more than 15% and a conversion rate multiplied by 3 thanks to greater participation in the circular economy. Take action on excess inventory with automated cloud reuse, resale, and recycling. Proprietary algorithms, developed according to scientific standards and with data scientists from MIT Solve, measure the environmental and economic impacts of a company’s on-chain activities. Go Raw at queenofraw.com.
About Future Planet Capital
Future Planet Capital is the impact-focused venture capital firm designed to support growing companies from the world’s top universities and research ecosystems. Based in London, but investing globally, the company has committed capital of nearly $400 million from institutional investors having backed more than 300 companies across geographies and stadiums. Future Planet Capital’s mission is to profitably solve the world’s greatest challenges in climate change, education, health, sustainable growth and security. Learn more at futureplanetcapital.com.
About True Wealth Ventures
True Wealth Ventures is an early-stage venture capital firm that invests in women-led businesses that improve human and/or environmental health. The company has been selected to the ImpactAssets 50 list, a global list of impact fund managers across all sectors and asset classes. True Wealth Ventures’ 2018 $20 million fund I close made it the largest venture capital fund ever raised at the time with a proprietary gender diversity strategy. Fund I’s 80% female sponsors were also unprecedented. Following the close of a $35 million oversubscribed Fund II, True Wealth’s current total assets under management are approximately $60 million and now has 15 portfolio companies. Additional information can be found at truewealthvc.com.