Vantaa-based Fiberdom, an innovator in wood fibre material innovation, has secured €3.5 million in funding to accelerate the development and scaling of its patented technology and its 100% plastic-free material.
This funding was raised from long-term investor Heino Group together with two new investors, Nordic Foodtech VC, and Holdix Oy, alongside a €600k 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.”
Founded in 2019, Fiberdom is a Finnish materials innovation company that has created a material from FSC-certified wood fibres. This is reportedly 100% plastic-free, high-performance, strong, formable and durable, lightweight and cost-effective, recyclable and home-compostable.
Fiberdom’s mission is to replace non-essential plastics with scalable, circular solutions.
The company has successfully commercialised its first application, single-use cutlery that complies with the EU’s Single-Use Plastics Directive, which is now available through leading Finnish retailers and B2B channels.
”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, Fiberdom believes 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 reportedly address 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 fibre-based packaging market alone projected to surge from €377 billion in 2025 to €525 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,” Järvenpää concludes.
Today, Fiberdom’s commercial pilot factory in Vantaa, Finland, produces the material, with home compostable cutlery as a first-in-market product.
Read the orginal article: https://www.eu-startups.com/2025/04/fiberdom-secures-e3-5-million-to-drive-plastic-free-circular-material-innovations/
