Vantaa-based startup Fiberdom has secured €3.5 million in funding to advance the development and scaling of its patented plastic-free material. The investment comes from Heino Group, Nordic Foodtech VC, and Holdix Oy, with an additional €0.6 million grant from Business Finland. Fiberdom’s technology converts pulp and paperboard into a recyclable, compostable material with applications in cutlery, packaging, and furniture. The funding will be used to expand production capacity, further develop its material technology, and explore new market applications amid increasing regulatory pressure to reduce plastic use.
Founded in 2019, Fiberdom specializes in the development of plastic-free, recyclable, and home-compostable alternatives derived from wood fibers. Using its patented technology, the company transforms pulp and paperboard into durable and formable materials suitable for applications in food packaging, storage solutions, and furniture. Fiberdom’s approach addresses the growing demand for sustainable alternatives to plastic, aligning with regulatory changes and industry efforts to reduce environmental impact.
The Finnish startup’s patented technology transforms market pulp and paperboard into a supermaterial that is 100% plastic-free, formable and strong, cost-efficient, recyclable, and home-compostable. While already proving commercial success with plastic-free cutlery, Fiberdom is advancing applications across multiple high-growth markets, including food contact materials, durable packaging and storage, and furniture.
The funding will accelerate Fiberdom’s strategic growth with strong investment in research and development and further commercialization of its technology and materials, as well as further strengthening of its core resources. This funding was raised from long-term investor Heino Group together with two new investors, Nordic Foodtech VC, and Holdix Oy, alongside a €0.6M grant from Business Finland.
“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,” said Tomi Järvenpää, General Manager at Fiberdom. “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.”
Fiberdom has developed a patented process that transforms natural wood fibers into a novel supermaterial that is formable, durable, 100% plastic-free, recyclable, and home-compostable. The company has successfully commercialized its first application, single-use cutlery that complies with the EU’s stringent Single-Use Plastics Directive, which is now available through leading Finnish retailers and B2B channels. This market validation demonstrates Fiberdom’s commercial readiness as it advances into new high-growth markets.
”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,” says Pekka Siivonen-Uotila, partner at Nordic Foodtech VC.
Driven by consumer preferences, corporate sustainability commitments, and evolving regulations, there is a growing need for the pulp and paper industry to develop innovative alternatives that enable reliance on plastics to be reduced or even eradicated in non-essential applications. One of the challenges with existing fiber-based solutions is their limited formability and strength when used in demanding applications, often requiring additives that can compromise recyclability.
Fiberdom’s technology and material address all these issues, enabling companies to replace non-essential plastics across the entire industry, significantly reducing plastic consumption.
The demand for plastic-free innovation is skyrocketing, with the global fiber-based packaging market alone projected to surge from $407 billion in 2025 to $567 billion by 2034, driven by increasing demand for plastic-free alternatives and regulatory measures promoting plastic-free materials.
“This funding represents a pivotal moment for Fiberdom as we scale our breakthrough technology to address the growing global demand for truly alternative materials,” Järvenpää explains. “We’ve proven our technology works commercially, and now we’re ready to transform entire product categories through strategic partnerships with forward-thinking companies. The materials revolution is happening now, and this investment enables us to accelerate our mission of replacing non-essential plastics with superior material alternatives that deliver both environmental and performance benefits.”
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Read the orginal article: https://arcticstartup.com/fiberdom-raises-e3-5-million/
