Impact Investment Readiness with Critical

Pictured: Rui Peng, Co-founder/Chief Executive at Critical. Supplied by Critical

Critical, a Māori-owned company based in Aotearoa, New Zealand, is dedicated to addressing the urgent issues of climate change and plastic pollution. Their mission is to transform plastic waste into beautiful, low- carbon, and endlessly recyclable materials, primarily targeting the construction industry with their flagship product, Cleanstone. Their customer base includes specifiers, property developers, retailers, shop fitters, fit-out architects, and product manufacturers.

Participation in the Impact Investment Readiness Programme

Critical, which had previously missed out on funding, applied for the 2022 Ākina Impact Investment Readiness Programme (IIRP) and secured a spot in this programme for the first time.

Eligibility Requirements

To be eligible for the IIRP, organisations need to meet certain criteria, including being a New Zealand incorporated entity with activities benefiting New Zealand, having a realistic plan for making a social, environmental, and/ or cultural difference, demonstrating a growth strategy that requires significant financial investment, and presenting a plan to get ready for that investment.

Mission and Vision

Critical’s core mission is deeply rooted in their commitment to Māori values and their responsibility to care for the natural world (te Taiao) by uplifting its mauri (life force). They strive to be good tīpuna (ancestors) for future generations and ensure the prosperity of their tamariki (children) for millennia to come.

Key Challenges and Environmental Impact

Climate change and plastics pollution are among the most significant challenges of our era. In New Zealand, over 400,000 tonnes of new plastics are imported annually, while up to 330,000 tonnes of used plastics end up in landfills. Critical addresses these challenges by producing Cleanstone, a stunning, sustainable, 100% recycled plastic panel. Made from locally reclaimed New Zealand plastic waste, Cleanstone has a low carbon footprint (0.006 - 0.012 CO2 e/kg) and is manufactured using locally recycled plastic instead of oil, contributing to reducing the carbon footprint in the built environment.

 
 

Support from Ākina

As part of the Impact Investment Readiness Programme, Critical received valuable support from Ākina, including intellectual property and legal advice for provisional patents, legal fees related to creating a nominee structure in preparation for a seed investment round, and assistance with updating their Shareholders Agreement to reflect their impact objectives.

Investment Round:

At the time of the Ākina FY23 Impact Report Launch (December 2023), Critical has successfully raised $1.25m towards their current $1.5m investment round, and once the raise is closed will bring in seven new shareholders. At the time of participating in the Impact Investment Readiness Programme, they were already engaged in a capital raise with first investors on board and a lead funder.

Investor Profile

The impact investors attracted by Critical are focused on achieving environmental, social and cultural outcomes, alongside financial returns.

Global Expansion

Critical’s vision extends beyond New Zealand. They have received interest from various markets, including Europe, the United States, Asia, India, and the UK, signifying the global relevance of their mission. The company acknowledges that the challenges of climate change and plastic pollution are not limited to New Zealand and is actively working to expand their presence worldwide.

Conclusion

Critical’s success with the Ākina Impact Investment Readiness Programme showcases the impact that purpose- driven businesses can have in addressing pressing environmental challenges. Their innovative approach to transforming plastic waste into sustainable building materials aligns perfectly with Te Ao Māori and commitment to future generations. With the support of Ākina, Critical is well on its way to making a significant contribution to environmental sustainability and the fight against climate change and plastic pollution.

Learn more about Ākina IIRP 2022 recipients, Critical. here

It's not too late to apply for the 2023 Ākina IIRP!

Does your organisation exist to create positive impact for people and the planet AND you’re getting ready to get investment?

The first three recipients for the 2023 Ākina IIRP have been announced, with applications still open and are being assessed on a rolling basis until all funding is allocated.

Our programme partners are particularly interested in impact-led organisations looking to grow based in:

  • Te Tai Tokerau, Northland

  • Tāmaki Makaurau, Auckland

  • Te Moana-a-Toi, Bay of Plenty

As well as a specific call for impact-led Māori or Pasifika businesses based in:

  • Horowhenua

  • Tairāwhiti, Gisborne

  • Te Tai Tokerau, Northland

Other areas of the motu are encouraged to apply if they believe they meet the criteria too.

The IIRP is made possible with the generous support from our programme partners, Bay Trust, Foundation North, Russell McVeagh and The Tindall Foundation.

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