A spokesperson for the company confirmed the Chemovator incubator has shut down. It comes amid restructuring of the company.
BASF’s incubation arm, Chemovator. Photo courtesy of Chemovator
German chemicals group BASF has shut down its startup incubation programme, Chemovator, amid a wider restructuring at the company.
Set up in 2018, the Chemovator programme was designed to help build and scale startups using the core business’s expertise. Companies created by the incubator were spun out to raise capital from external investors.
A spokesperson for BASF said the company closed the incubator today, July 1, and placed its existing investments under the management of BASF Venture Capital, the company’s corporate investment unit.
In recent years, BASF has suffered falling revenue and squeezed margins from high energy prices, which have affected its chemicals production operations, which in turn impacts the company’s other business units.
As part of its restructuring efforts, it has sold parts of the business to generate value. In February, it struck a deal to sell its Brazilian decorative paints business to US paint company Sherman-Williams for $1.15bn. It has also started to sell its coatings business, according to reports from Bloomberg.
BASF’s strategic investment arm, BASF Venture Capital, was founded in 2001. It invests in decarbonisation, materials and agtech startups. It was separate to Chemovator but collaborated with the incubator to share insight into the chemicals industry.
