Collateral Good Ventures Fashion I is a climate-first venture capital fund, which has been designed to accelerate sustainability in the fashion industry. Hugo Boss, the luxury fashion brand, has recently announced that they are reportedly the first company to invest in this new initiative.

The project has a total target volume of 100m euros and Hugo Boss has agreed that an estimated 10% of this target will be provided through their investment. The fashion brand has agreed to do this because it will help the sustainable and already popular venture reach its goal. The new venture is evidently popular as it has started to attract interest from notable family offices, asset managers and institutional investors, despite still being relatively new.

Hugo Boss has pointed out that the drive behind this initiative is to subsidise the growth of the companies and strengthen the initiative’s commitment to a more sustainable future, consequently highlighting Hugo Boss’ commitment to the same ideals. Therefore, the fund that Hugo Boss has provided will be used by the project over a time span of five years. It will be dedicated to subsidising several portfolio companies. These companies will all fit the category of being startups in the early growth and potential stages. They will also all be companies that are focusing on the development of innovative sustainability solutions and technologies. This criteria will also include companies which are focusing on various points within and throughout the value chain, this could include the upcycling of raw materials, the prevention of microfibre release and repair and care solutions.

Chief executive officer of Hugo Boss, Daniel Grieder, commented, “Through this new form of investment, Hugo Boss will look for new solutions to target areas such as increasing circularity, using only nature-positive materials, eliminating microplastic pollution, and achieving zero emissions. Our CLAIM 5 strategy defines our growth trajectory, but at the same time, it is guided by our commitment to be sustainable throughout. The partnership with Collateral Good perfectly complements our sustainability strategy ‘For a bold and better future’, which strives for a planet free of waste and pollution.”