Bridging the Gap: Amit Paul on the Realities of Scaling Green Chemistry Innovations

As the demand for green chemistry solutions grows, startups face significant hurdles in securing the funding needed to transform their innovations into reality. The shift away from chemicals of concern is critical, yet many investors struggle to grasp the unique complexities of the chemistry sector. This disconnect often leaves startups navigating a challenging landscape where traditional funding expectations can stifle the growth of transformative technologies.

Amit Paul, CEO and co-founder of Paxymer, is actively working to address these challenges. Paxymer specializes in developing halogen-free flame retardants, focusing on replacing persistent and harmful chemicals with safer alternatives. With over 14 years of dedication to this mission, Amit has witnessed firsthand the need for systemic change in how we approach chemistry and innovation. In our conversation, he shares insights into the complexities of scaling chemistry startups, the importance of collaboration, and the broader vision for a more sustainable future.

Change Chemistry: Your family has a strong background in chemistry, particularly your father's influence. Can you share how that shaped your own path and perspectives in the industry?

Amit Paul: My father is the chemical brain behind the company. He worked in Swedish industries for years but grew frustrated when projects stopped before addressing safety concerns. This “good enough” mentality, especially in the ‘80s, led him to start his own consultancy in 1985 when I was two.

Growing up, we always discussed what makes chemistry “good” and the importance of minimizing hazards. I initially thought I’d follow his path, but life took me in another direction. In my teens, I became a pop artist before returning to business school and eventually the family company.

After a few years, I realized the startup model wasn’t creating real change in the chemical industry. It became clear that we needed to challenge incumbent chemistries on a larger scale. Now, I’m focused on creating structures for systemic change.

Change Chemistry: Tell us more about that. What issues do you see with the startup model?

Amit: The startup model we use today is largely borrowed from the tech sector, where it works because you can iterate quickly and at low cost, minimizing risk. In tech, you can pivot fast. But in industrial settings, like with Paxymer, it’s a different story. Our product iterations took six to twelve months, and getting feedback could take up to three years. Even after refining the product, scaling it up is complex and risky, requiring significant time and resources.

We’ve seen green companies receive huge investments but still fail because they couldn’t scale successfully. So, in addition to the technology risk, there’s scaling risk, and even when you overcome those, there’s market risk. Unlike in tech, you can’t create a new market from scratch—you're constrained by existing regulations and market structures.

The timelines and risks in industrial contexts are simply too long and complex for the traditional startup model to handle effectively. Ignoring these risks leads to failures.

Change Chemistry: Do funders understand the unique challenges of chemistry startups compared to tech startups?

Amit: They generally don’t. They expect quick returns, often within 8 to 10 years, which forces startups to present an oversimplified narrative, focused on a single market vertical. But chemistry technologies can impact multiple markets, making it hard to conform to narrow investor expectations.

For example, investors want a clear path in a fragmented market like plastics, but that limits a startup's ability to address broader opportunities. If the technology doesn’t scale as fast as expected, trust breaks down, and founders end up managing investor relations instead of growing the company.

Another issue is that many investors come from outside the industry and don’t fully grasp the complexities of scaling chemistry innovations. They push for sales without understanding that the technology might need reframing to fit real market needs.

We need more collaborative models where chemists can stay flexible and adapt their technology to real-world demands. Open innovation, where big companies solicit new technologies, is promising, but many brands don’t fully understand what it takes to develop new materials.

There’s often a mismatch: chemistry startups struggle with a clear path to market, and brands can’t be engaged ‘early enough’. Scaling from pilot to industrial production is also a challenge, with a disconnect between innovation and commercial viability.

At the Innovators Roundtable, I’ll be discussing how brands, the chemical industry, and startups can collaborate more effectively. Brands need to define their needs in neutral spaces like Change Chemistry and define quantities in off-take agreements, allowing startups to contribute with a partial license of their technology without disrupting their existing workflows. Finally, the technology is integrated into existing supply chains. This way, we can assess and mitigate both technical and commercial risks. Because we have the chemical industry on board, we have the expertise needed for scaling the technologies at a relevant pace. We can move the industry forward with trust and collaboration.

Change Chemistry: What does the actual facilitation of that future startup model look like?

Amit: I think it's a combination of different elements. First, it's about dialog facilitation, bringing all the relevant stakeholders to the table in a setting where we can have open, honest conversations. It’s important to make this a safe space so that people feel comfortable sharing the real challenges they’re facing, both on a social level and from a contractual standpoint.

The second part involves figuring out what contracts and structures we need to ensure that everyone feels their interests are safeguarded. It’s about de-risking the process for everyone involved.

The third part is about speed—can we do this fast enough? The value we’re providing comes from moving these technologies and applications forward at a much faster pace by clearly defining the scope of the projects.

Change Chemistry: Can you tell me about your history with Change Chemistry?

Amit: We were part of one of the first Startup Cohorts, and it’s been valuable. We’ve had meaningful conversations that led to concrete outcomes, like sampling and exploring new directions.

The cohort model and facilitated discussions have been helpful, and Change Chemistry’s consortium-building is inspiring. It makes me think about expanding this approach, like creating a structured project with an SPV (special purpose vehicle), where people invest through contributions and clearly define ownership. This would increase commitment.

What stands out is the trust Joel and the team have built. They’ve gathered the right people, maintaining integrity and focusing on realistic, needs-based discussions. They acknowledge what isn’t working while pushing for solutions, which has been invaluable.

We’ve also learned that for chemistry startups, it’s hard to know where your product fits until you engage deeply with potential customers. Often, there’s no immediate demand, even when everything checks out, as we’ve seen with Paxymer. The market waits for legislative changes before they implement new technology at scale, and Change Chemistry’s discussions have helped us uncover this reality earlier, saving us time and money.

Change Chemistry: Given your experiences and the insights we've discussed, what guidance or considerations would you offer to the Change Chemistry community?

Amit: The people I’ve met in the Change Chemistry community are genuinely engaged, smart, clever, and nice. However, sometimes we leave these conversations feeling frustrated that more isn’t happening.

A thinker I admire, Bayo Akomolafe, says, “The times are urgent – let’s slow down.” I appreciate this sentiment because what we don’t have time for is to make mistakes again. It’s good to have an action bias and a desire to get things done, but we need to focus on getting the right things done. We should take the time to orient ourselves and identify what those right things are.

Additionally, I read a lot about complex systems, and it’s crucial to understand the difference between complicated and complex. Complex systems involve emergent properties that can’t be explained simply by their parts, and you can’t always control the outcomes. You might adjust one aspect, but it could lead to unexpected results. This underscores the need for experimentation.

I encourage us to focus on small experiments rather than grand ideas. Sometimes, the smallest experiments are more valuable than the largest solutions. We should let go of the notion that big problems require big solutions and just play with it.

Change Chemistry: Would you mind if we talked a bit about what you do outside of your work at Paxymer? Do you see connections between your recreational activities and your work?

Amit: Right now, most of my time outside of work is spent with my family. In terms of hobbies, the sport I’m most attached to is backcountry skiing. I also enjoy running and biking—pretty much anything outdoors. Recently, I’ve started wrestling, specifically Brazilian Jiu-Jitsu. It’s my first real encounter with martial arts, and it’s been incredible. What fascinates me is how much it relates to systemic change work. In Jiu-Jitsu, I’ve had to unlearn certain habits, like only exerting energy when I’m stuck or pushing against pressure instead of using free body parts to move. It’s been a huge lesson in patience and efficiency.

It makes me think about activism too—like, who am I serving when I just push back against the biggest obstacle? How can I be more efficient and respectful of the process? 

When you’re in nature, you have to be aware of your context. It’s crucial to understand maps and know where you’re going, but I also find that when I’m moving in nature, I never have my nose down. I might follow a compass, but it’s essential to see where the next step is and read the terrain. It’s vital to stay connected to your current situation and make choices accordingly, allowing for deviations based on context. There’s also a level of humility involved.

In both outdoor and work situations, I think about what we can know and what we can’t. It’s about discernment and curiosity—asking the right questions. I’ve learned that nothing is impossible; you can always find a different way. Sometimes, walking steeply up a mountain is necessary, but often taking a longer, flatter route can be faster.

I draw a lot of embodied knowledge from my experiences in nature, and I’ve realized that learning is what matters most to me. I used to be that person pushing against the current, thinking I was making a significant impact. But sometimes, you need to stop, look around, and float with the river. It may feel like you’re doing nothing, but that approach can be more effective.

We look forward to welcoming Amit Paul as a presenter in our “Creating supportive incentives and funding for innovation, scale and adoption of sustainable chemicals” session at the 2024 Innovators Roundtable this October! Register now to attend.