Finnish sustainable materials startup Fiberdom has raised €3.5m ($3.7m) in funding to advance its plastic-free, circular material technology.

The funds will support the development and commercialisation of the company’s patented material.

The investment round was led by long-term investor Heino Group, with additional backing from Nordic Foodtech VC and Holdix.

Fiberdom also received a €0.6m grant from Business Finland to support its growth and product development.

Fiberdom’s technology transforms pulp and paperboard into a material that is reportedly strong, cost-efficient, and fully recyclable.

The solution is also home-compostable, providing an environmentally friendly alternative to plastic.

Having already achieved commercial success in the plastic-free cutlery market, Fiberdom is expanding into other sectors such as food contact materials, durable packaging, storage solutions, and furniture.

The technology enables companies to replace nonessential plastics in their product packaging, significantly reducing plastic consumption across multiple industries.

Fiberdom general manager Tomi Järvenpää 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.

“This funding represents a pivotal moment for Fiberdom as we scale our breakthrough technology to address the growing global demand for truly alternative materials.”