€3.5 Million Secured by Fiberdom to Advance Sustainable, Circular Materials
Finnish start-up Fiberdom has raised €3.5 million to speed up the commercialization and scaling of its innovation of plastic-free wood fibre material.
The mission of the company is to substitute non-essential plastics with scalable, circular alternatives. Its patented technology converts market pulp and paperboard into a 'super material' that is 100% plastic-free, home-compostable, recyclable, strong, and moldable.
According to coherent market insights, the sustainable materials industry is anticipated to grow with a CAGR of 12% over the forecast period 2025-2032. The market will be valued at USD 357.18 Bn in 2025 and is anticipated to reach USD 800.02 Bn by 2032. Industry size is being spurred by increasing demand for environmentally friendly alternatives.
Fiberdom has commercially proved its first use of the 'high-performance' material, designing single-use cutlery which meets the EU's Single-Use Plastic Directive. It now aims at new applications in various high-growth markets, including food contact materials and durable packaging and storage and furniture.
The funding was secured from long-term investor Heino Group, as well as two new investors: Nordic Foodtech VC and Holdix Oy, in addition to a €600,000 grant from Business Finland. It will fund the growth of the start-up, with heavy investment in R&D, further commercialization of its technology and materials, and resource strengthening.
Tomi Järvenpää, Fiberdom's general manager, stated: "This significant investment, particularly in the current difficult funding climate, demonstrates the faith our investors have in Fiberdom's team and its abilities, the potential of our supermaterial, technology, and mission."
“We have tested our material in numerous applications and discovered that it has massive potential. The commitment from both long-term and new investors underscores the value of what we’re building – a future driven by smarter materials that deliver durability and high performance without plastic.”
There is an increasing demand for the pulp and paper sector to create innovative alternatives that can enable less dependence on plastics, in accordance with sustainability promises, changing regulations, and consumer demands. One of the challenges of current fibre-based solutions is their poor formability and strength when applied in demanding uses, frequently necessitating additives that can detract from recyclability.
As Fiberdom states, its material and technology solve all of these problems, and companies can cut plastic consumption significantly and even eliminate it where it is not essential.
Nordic Foodtech VC partner Pekka Siivonen-Uotila said: "Replacing single-use plastics in serving and eating on-the-go food and in food packaging is one of the main issues in the food system, both for the industry and for the consumers."
Fiberdom technology tackles all four important corners of a successful solution: functionality, scalability, sustainability, and recyclability. We think the cutlery is a good beginning for much larger plastic-free product innovation.
Source:
Ecommerce PLatform: FOODBEV MEDIA Ltd.
Company: Fiberdom
