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Finnish start-up Fiberdom has secured €3.5 million in funding to accelerate the development and scaling of its plastic-free wood fibre material innovation.

The company’s mission is to replace non-essential plastics with scalable, circular solutions. Its patented technology transforms market pulp and paperboard into a ‘super material’ that is 100% free from plastic, home-compostable, recyclable, strong and formable.

Fiberdom has successfully commercialised its first application of the ‘high-performance’ material, developing single-use cutlery that complies with the EU’s Single-Use Plastic Directive. It is now targeting new applications across multiple high-growth markets, including food contact materials and durable packaging and storage, as well as furniture.

The funding was raised from long-term investor Heino Group, together with two new investors: Nordic Foodtech VC and Holdix Oy, alongside a €600,000 grant from Business Finland. It will support the start-up’s growth, with strong investment in R&D, further commercialisation of its technology and materials, and strengthening of its resources.

Tomi Järvenpää, general manager at Fiberdom, said: “This substantial investment, especially in today’s challenging funding environment, reflects the confidence our investors have in Fiberdom’s team and its capabilities, 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 a growing need for the pulp and paper industry to develop innovative alternatives that can support reduced reliance on plastics, in line with sustainability commitments, evolving regulations and consumer preferences. A challenge associated with existing fibre-based solutions is their limited formability and strength when used in demanding applications, often requiring additives that can compromise recyclability.

According to Fiberdom, its technology and material addresses all of these issues, enabling companies to significantly reduce plastic use and even eradicate it in non-essential applications.

Pekka Siivonen-Uotila, partner at investor Nordic Foodtech VC, commented: “Replacing single-use plastics in food packaging and in serving and eating on-the-go food is one of the key pain points in the food system, both for the industry and for the consumers”.

“Fiberdom’s technology addresses all four critical corners of a winning solution: functionality, scalability, sustainability and recyclability. We believe the cutlery is a great starting point for much broader innovation in plastic-free products.”