For this third episode, we met in Oise, more precisely at the incubator iTerra. It has worked with the company TchaoMegot, labeled Greentech Innovation in 2022.
TchaoMegot
Can you introduce us to TchaoMegot?
TchaoMegot collects, decontaminates, and recycles cigarette butts by producing eco-designed insulation. We reuse 99.7% of the fiber from the butt to create a new clean raw material that will be used for building insulation, as well as textiles for jackets. To this end, we set up informative and communicative collection points in businesses and communities to collect the butts.
Tell us about our innovative solution
We have developed the world’s first innovative process capable of decontaminating the filter of cigarette butts. This process is done without water or toxic solvents, using a neutral solvent. This eliminates toxic substances to produce a clean, decontaminated, and odorless material.
We recycle this fiber in bulk or in sheets of varying thicknesses to reuse it in building insulation or the manufacture of jackets. This material is certified to be safely resold on the market.
How has iTerra helped you in developing your start-up?
iTerra helped us develop our solution from the very beginning. They enabled us to find grants and aids to bring our project to fruition. They have been a true facilitator in our development and establishment in the region.
What has the designation “Greentech Innovation” brought you in your development?
The Greentech Innovation label provides us daily with certification and recognition from the state in the eyes of businesses and communities. It reassures our clients, certifying that our solution is virtuous, viable, and respects a circular economy.
What challenges has TchaoMegot faced in its development? Can you give us an example?
The first challenge we faced was a major technological challenge: to decontaminate cigarette butts without using water or toxic solvents. Developing a process that is both effective and environmentally friendly required a lot of research and development.
This process took time to be optimized but also cost a lot of money to obtain the necessary certifications to prove its effectiveness.
Another ongoing challenge is convincing consumers and businesses of the reliability of our process. It is a very recent innovation on the market (2020), and we face a few competitors using different recycling methods. Thus, we must be as clear and convincing as possible regarding our solution.
What type of clients do you address?
Our solutions are aimed at everyone but particularly at businesses and communities (public and private actors). We have also implemented solutions for individuals with 5L collection bags.
What is the “Success Story” contract you are most proud of?
We are proud of all our partners who are committed to recycling butts to protect our environment.
Nevertheless, we recently installed 20 of our ashtrays at the Presidency of the Republic: Élysée and Palais de l’Alma, in February 2024. This is a true recognition of our project and one of the best rewards for us. This partnership reinforces our mission and inspires us to continue developing innovative solutions for a cleaner future. This action is a springboard and a significant credibility boost for our virtuous activity.
We are also very proud of all the businesses and communities that have committed to this action. We particularly think of: Levallois-Perret, Nogent-sur-Seine, Nhood, CHU de Reims, Béthune, La Poste… and many others.
What does it mean for you to have been recognized by the Forbes Under 30 France ranking?
This recognition is a validation of the importance of our mission. It highlights the positive environmental and social impact of our work. Being included in the Forbes Under 30 ranking gives our company exceptional visibility and strengthens our credibility with potential partners, investors, and clients. The recognition of Julien as an emerging leader inspires not only our team but also other young entrepreneurs and innovators to pursue ecological and sustainable initiatives. This distinction opens doors to new opportunities for collaboration, funding, and growth. It allows us to expand our network and access resources that can accelerate our development.
What are your next development goals?
We have just finalized a fundraising round of €3.6 million. This will allow us to transition to industrial scale and invest in a larger decontamination machine, going from 10 tons of treated butts per year to 300 tons. The goal is also to expand the team from 26 to 50 people by the end of the year.
Our ultimate goal is to establish our industrial site in all regions of France to reduce transport costs and our carbon footprint. Our ideal would be to equip as many businesses and communities with our solutions!
We aim to export our solution to Europe and internationally in the near future.
iTerra
Agathe Vuillemenot, director of the iTerra incubator, answers all our questions:
Why did you choose to support TchaoMegot?
When this enthusiastic young man entered our offices, his cigarette butt recycling project was still at the exploratory stage, but his entrepreneurial spirit was palpable and contagious. We thought that whatever he did, he would be an entrepreneur. It was in Julien Paque’s DNA; he could not escape his destiny. We believed in the man before believing in the project.
How did you support TchaoMegot? What role did you play in its development?
We first supported Julien during the incubation phase, even before the creation of a legal entity. The first step was to find funding to conduct analyses and overcome a significant technological barrier: proving that his process could decontaminate cigarette butts without using water. This is a true disruptive innovation.
What challenges were faced in supporting TchaoMegot? What challenges are associated with its sector? What opportunities did you identify?
One of the major challenges was innovating to create an industrial structure. At the time, investors preferred projects based on application development, which were less costly than industrial projects. The sector is also influenced by powerful lobbies, such as those from cigarette manufacturers. However, the opportunity for TchaoMegot came with the Extended Producer Responsibility (EPR) being drafted in its sector, and a growing awareness of the butt problem.
How do you work with start-ups to help them define their business model and validate their value proposition?
We offer training programs and individual support. We challenge the assumptions of project leaders with kindness but without complacency. The project leader remains in control of their project: we propose, we suggest, but we impose nothing.
How do you facilitate networking and collaboration opportunities among the start-ups in your incubator?
We naturally facilitate networking by using our extensive network. Iterra is at the center of a network of innovation and entrepreneurship actors. We have direct contact details for our interlocutors and we are never more than two handshakes away from the person sought. Julien and TchaoMegot have benefited from this ecosystem. We have created a community for iTerra beneficiaries, the Iterrians, with a very active Whatsapp group where no question goes unanswered.
How do you measure the impact of your support on start-ups, in terms of growth, funding, or other key outcomes?
Our first measure is the production of an ambitious, profitable, and sustainable business model, allowing for the projection into the creation of the company at the end of the incubation period.
Then, we annually track funding rounds and key financial indicators. We also assess satisfaction as well as the mental and physical health of the project leader. The entrepreneur is the backbone of the project, and their failure could jeopardize the company’s success. Enjoyment must remain the driving force, and accomplishment must be the primary objective of this adventure. Creating an innovative start-up involves riding a true emotional rollercoaster, and it is crucial to know oneself well in order to anticipate the inevitable turbulence.
How do you assess the growth and impact potential of a start-up during the selection process?
Evaluating growth potential at the beginning of a project is very difficult. However, certain exceptional personalities show from the start that they will be entrepreneurs. A high-potential start-up combines a committed project leader with a solution to an unresolved problem, awaited by a solvable market. Lastly, the solution must be sustainable and take into account environmental impacts.