Venture building and circular economy  

In recent years, the circular economy has become a cornerstone of the debate on sustainability, innovation, and competitiveness. Companies, institutions, and investors increasingly recognize the need to reduce dependence on virgin resources, rethink production models, and design systems capable of regenerating value over time. However, despite the growing number of pilot projects and experiments, many circular solutions still struggle to scale.


The limitation is not only technological or regulatory. It is primarily entrepreneurial.
This is where venture building emerges as a strategic lever to transform circular innovation into companies capable of succeeding in the market.

Why the circular economy struggles to become business

According to the Ellen MacArthur Foundation, the transition to a circular economy requires a profound shift not only in products, but above all in business models and value chains (Completing the Picture, 2019). However, many circular initiatives face recurring challenges:


– complex business models that are often not immediately profitable

– the need to coordinate multiple actors across the value chain

– high upfront costs with returns spread over time

– regulatory and market uncertainty

– a lack of dedicated entrepreneurial skills


The OECD also highlights how the absence of robust and replicable business models represents one of the main barriers to the widespread adoption of the circular economy (Business Models for the Circular Economy, 2020).


In this context, circularity risks remaining confined to experimental initiatives, without generating systemic change. The real challenge is not only to design circular solutions, but to build companies capable of turning them into scalable business models.

What is venture building


Venture building is an approach to innovation that goes beyond traditional incubators and accelerators.
A venture builder does not simply support existing startups, but actively participates in the creation of new companies, focusing on:


– identifying real problems and market opportunities

– validating solutions

– building the team

– defining the business model

– developing the go-to-market strategy


Unlike accelerators, which work with already established startups, venture building operates upstream, reducing risk and increasing the likelihood of long-term success. This approach is increasingly adopted in complex sectors such as energy, mobility, materials, and, increasingly, the circular economy.

Why venture building is particularly suited to circularity 

The circular economy has characteristics that make venture building a particularly effective tool.


1. Circularity is systemic

Circular solutions rarely involve a single actor. They require collaboration across the value chain, dedicated infrastructure, reverse logistics, and new services. Venture building enables the design of companies born to operate within complex ecosystems, rather than as isolated entities.


2. Business models must be tested

Product-as-a-service, sharing, remanufacturing, second life: these are models that must be validated in real-world conditions. Venture building enables rapid experimentation, continuous iteration, and progressive adaptation, reducing the risk of failure.


3. Impact and economics must grow together

The European Commission highlights that the circular transition requires companies capable of combining environmental sustainability with economic robustness (EU Circular Economy Action Plan, 2020). Venture building operates precisely at this intersection.

From circular problem to a new company

A venture building journey in the circular economy almost always starts from a concrete problem, such as:

– unvalorized waste streams

– critical materials that are difficult to recover

– products designed for an excessively short useful life

– inefficiencies along the value chain


The process follows several key phases:

– analysis of the problem and the market context

– validation of the circular solution

– definition of the business model

– creation of the new venture

– monitoring of economic and environmental performance


Across all these phases, measuring circularity becomes essential: without reliable data, it is impossible to make informed decisions, attract investment, or demonstrate the value generated.

The role of measurement and data

In recent years, international frameworks have emerged highlighting the importance of measuring circularity in a structured way. The Global Circularity Protocol for Business developed by the WBCSD, for example, proposes shared indicators to measure, manage, and communicate companies’ circular performance.


Measurement supports venture building by enabling organizations to:

– assess the feasibility of new initiatives

– identify hotspots and opportunities for improvement

– monitor the evolution of the business model

– communicate results transparently to investors and stakeholders

Tondo’s contribution: tools and circular venture building

Tondo operates at the intersection of circular innovation, measurement, and venture building, supporting companies and organizations in transforming ideas into concrete initiatives.


Circularity measurement tools


Tondo uses nationally and internationally recognized methodologies to measure the circularity of products, companies, and territories. These include:


– the Material Circularity Indicator developed by the Ellen MacArthur Foundation for products

– UNI/TS 11820 for measuring corporate circularity

– an advanced tool integrating ISO 59020 and Circulytics, combining quantitative analysis with strategic assessment


These tools enable the transformation of data into entrepreneurial decisions, a key element in venture building pathways.


AI Circular Venture Sprint

To accelerate the creation of new circular companies, Tondo has launched the AI Circular Venture Sprint, an intensive 2–3 month program that combines:

– analysis of circular challenges

– the use of artificial intelligence

– rapid validation of business models

– development of new market-ready ventures


Circularity + AI tool

Tondo has also launched a pilot that integrates circularity measurement tools and artificial intelligence, selecting a limited number of companies to test how circularity data can inform strategic roadmaps and new entrepreneurial initiatives.

The role of companies and territories

Circular venture building does not concern only independent startups. It increasingly involves established companies, industrial value chains, and territories seeking to valorize local resources and reduce systemic waste.


As also highlighted by the Ellen MacArthur Foundation, collaboration among actors is one of the key levers for scaling circularity and generating real impact.

Conclusion

The transition to a circular economy will not be achieved solely through public policies or pilot projects. It will succeed if we are able to build new companies capable of operating in the market, generating economic value, and reducing environmental impacts.


Venture building represents one of the most promising levers for transforming circularity from vision into reality. Along this journey, reliable measurement tools, structured data, and approaches such as those developed by Tondo are essential to making circular innovation concrete, scalable, and long-lasting.

Francesco Castellano

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up. In recent years, Francesco Castellano founded Tondo, a hub of... Read more

Francesco Castellano is a seasoned business leader and strategist with over 20 years of experience spanning research, finance, consulting, and entrepreneurship. He has held impactful roles, including serving as a consultant at Bain & Company, launching Uber operations in Turin, and working as Managing Director of a Swiss start-up.

In recent years, Francesco Castellano founded Tondo, a hub of organizations dedicated to promoting Circular Economy approaches and supporting companies in transitioning to sustainable and circular practices. He is also the ideator and coordinator of the Re-think Circular Economy Forum, a high-profile event held across Italy to showcase innovative Circular Economy solutions.

Francesco Castellano collaborates with European institutions, serving as an expert for the European Commission’s Circular Cities and Regions Initiative and mentoring startups in the European Institute of Innovation and Technology’s (EIT) New European Bauhaus Booster Program. Through these roles, he actively supports the development and scaling of circular economy ventures across Europe.

He is also a sought-after speaker and lecturer, sharing his expertise on Circular Economy, Innovation, and Entrepreneurship at universities and international events. Francesco holds executive education certificates from prestigious institutions such as MIT, Harvard, and the University of Virginia, further solidifying his credentials in strategy, sustainability, and innovation.

Fluent in Italian, English, and Spanish, Francesco Castellano combines his diverse skill set with a passion for Circular Economy, Cleantech Innovations, and Entrepreneurship. His strong background in Corporate Strategy, Sustainability, Innovation Development, and Finance enables him to drive impactful change in every initiative he undertakes.

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