Fiberwood bags US$8.35M to develop insulation and packaging materials

FINLAND – Järvenpää-based materials technology startup Fiberwood has secured €7.7 million (US$8.35m) in growth funding from existing investors Metsä Spring and Stephen Industries, alongside public financiers.

This funding will enable Fiberwood to build a test line, finalize its product concept, and ensure industrial scalability. It will pave the way for future commercial agreements and reinforce its pioneering position in materials technology.

Established in 2019, Fiberwood is dedicated to advancing sustainable and ecological construction and packaging solutions.

The company has developed a technology and production process that utilizes forestry side streams and other natural fibers to produce circular, fossil-free insulation and packaging materials.

These products are eco-friendly, recyclable, and resource-efficient alternatives to traditional mineral wool-based insulation and cellular plastic-based packaging cushioning.

“Fiberwood’s products enable sustainable materials in entirely new applications, setting us apart in the market,” explains CEO Tage Johansson.

In the spring of 2023, Fiberwood received €3 million (US$3.25m) for development work. With the additional funding, the company will build a test line to finalize its product concept, ensure industrial scalability, and accelerate R&D activities.

This will allow Fiberwood to manufacture fully market-compatible products for commercial projects.

Fiberwood has several product development projects underway with strategic customers and is close to finalizing its initial series of commercial agreements.

“The funding round strengthens Fiberwood’s position as a pioneer in materials technology,” says Johansson.

“Our investment in process technology enhances our competitive position and contributes to developing Finnish forestry and materials technology expertise.”

Cellugy secures US$5.32M to scale sustainable alternatives to petrochemicals

In other news, Søborg-based biotech startup Cellugy has secured €4.9 million (US$5.32 million) in seed funding from investors including ICIG Ventures, Unconventional Ventures, Joyance Partners, PSV DeepTech, The Footprint Firm, and EIFO.

Cellugy specializes in developing natural, biofabricated cellulose-based solutions to replace fossil-based materials in various industries.

The funding will be used to scale up production of their EcoFLEXY dry cellulose product from pilot to industrial volumes, meeting increasing customer demand and exploring new application areas.

Cellugy’s team of scientists has developed a unique platform technology that leverages cellulose-producing microorganisms to create high-purity, crystalline cellulose from the bioconversion of sugar.

This platform produces fully bio-based and biodegradable alternatives to carbon-intensive petrochemicals, commonly used in cosmetic formulations for their desirable functional properties but pose significant environmental threats and potential health risks.

“Reliance on fossil-based petrochemical ingredients is today’s most critical sustainability issue in producing personal care products,” says Dr. Isabel Alvarez-Martos, CEO and co-founder of Cellugy.

“Our mission is to develop sustainable solutions for everyday products, and we are pleased to partner with impact-driven investors to achieve those goals.”

By bridging the gap between sustainability, safety, and applicability, Cellugy aims to significantly reduce the environmental impact of personal care products and promote a future free from polluting ingredients.

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