Fiberwood, a Finland-based materials technology startup, has secured €7.7m to develop sustainable building insulation and packaging materials.
Founded in 2019, Fiberwood is engaged in advancing environmental-friendly construction and packaging. Its growth funding round was led by existing investors including Stephen Industries and Metsä Spring and public financiers.
With the investment, the Finnish firm is planning to start a commercial phase and expand on a global scale.The startup has innovated a technology and manufacturing process for producing circular, fossil-free insulation and packaging materials using forestry side streams and other natural fibres.
Fiberwood CEO Tage Johansson said: “Our products offer eco-friendly, recyclable and resource-efficient alternatives to traditional mineral wool-based insulation and cellular plastic-based packaging cushioning.
“Additionally, we enable the use of sustainable products in entirely new applications.” Last year, Fiberwood secured €3m in funding for its developmental endeavours.
With the new financial backing, the company aims to commence the construction of a test line for finalising its product concept, ensure industrial scalability, and expedite research and development (R&D) efforts.
In addition, the test line will facilitate the production of fully market-ready products tailored to customers’ commercial ventures.
Currently, Fiberwood is engaged in multiple product development activities with strategic partners and is close to concluding its inaugural series of commercial agreements.
Johansson said: “The funding round strengthens Fiberwood’s position as a pioneer in materials technology. We’re setting the foundation for a future production line, minimising risks from the outset.
“Our investment in process technology distinguishes us, enhances our competitive position, and contributes to the development of the Finnish forestry and materials technology know-how.”
The materials technology company uses residual materials and transforms them into valuable, recyclable, and carbon-sequestering substances suitable for diverse applications.
Fiberwood’s breathable and compostable insulation and packaging materials are intended to offer eco-conscious alternatives to traditional mineral wool-based insulation and cellular plastic-based packaging cushioning.