Adidas Group's in-house venture capital fund agreed Dec. 19 to invest CAD$2.0 million in CRAiLAR Technologies Inc., a Canadian company that makes natural fibers from flax, hemp and other plants that can be used to make a garment that is as soft and durable as cotton, but requires much less water and pesticides to cultivate.

Hydra Ventures B.V has agreed to subscribe to up to 3.33 million units of CRAiLAR at a proposed subscription price of six cents (CAD) per unit. Each unit will be comprised of one common share and a warrant that gives Hydra the right to acquire another common share for 70 cents within five years of closing. CRAiLAR will use proceeds from the placement for general corporate purposes. The company simultaneously announced it had secure a €2.2 million, 30-month loan from IKEA to install equipment needed to buy equipment and materials  CRAiLAR's needs to fulfill the Swedish furniture retailer’s orders.
 
Carhartt, Hanes, Lenzing and PVH are among the brands that have partnered with CRAiLAR to develop new fabrics by blending CRAiLAR Flax with cotton, viscose and other fibers. 
 
“As a global leader in the advancement of sustainability and sports performance, we believe that our relationship with such an iconic sports company will help deliver a CRAiLAR brand and product message to some of the most loyal consumers on the planet,” said CRAiLAR CEO Ken Barker.

Based in Victoria, B.C., CRAiLAR has a production facility in South Carolina and runs its U.S. office from Lake Oswego, OR near the Portland headquarters for Adidas North America. Its stock is traded on the Toronto Stock Exchange.

Adidas launched Hydra Ventures in 2011 to exploit new market opportunities by creating and developing new consumer brands and trends in the apparel, footwear and sports-related areas. That was the same year, Nike’s Sustainable Business and Innovation Lab established its own VC operation to fund alternative energies and more sustainable business practices. One of its first investments was in DyeCoo Textile Systems, a Dutch company that developed the first commercially available waterless dyeing technology. Ikea has since invested in DyeCoo.