Finnish startup Innomost said it has raised €5 million from private and public funds to bring its birch bark innovation into new markets as a sustainable alternative for environmentally harmful ingredients in consumer products.
The funding round was led by Metsä Spring Ltd. with Innovestor and angel investors joining the round. The round was completed with grants and loans from Business Finland as well as other public financing sources.
The funding will be used to set up a pilot plant, capable of producing 20 tonnes of birch bark products per year by 2023, in Innomost’s hometown of Kokkola.
Capital will also go towards further R&D work, as well as growing their existing customer base in international markets. The pilot plant will be used to test and plan the process for the next industrial-scale plant.
Consumers want to use natural, renewable, and sustainable cosmetics that are good for them and for the world. The majority of ingredients and packaging materials used today, however, are made from fossil fuels, plastic, or palm oil, which are associated with many environmental and ethical issues.
By using birch bark side streams, Innomost can upcycle naturally occurring raw materials that would normally be used for energy production or other lower value purposes into high-quality products. The products are more environmentally sustainable, as they derive from a renewable carbon source rather than similar fossil fuel-based materials.
“It’s really a win-win situation. The raw materials for Innomost’s products are available in large volumes at a feasible cost. Our raw material originates from Nordic forests, not from lands that could be used for food or feed. We are on top of the new beauty trend for upcycling, zero waste and full-cycle natural cosmetics,” said Sami Selkälä, CEO and Founder of Innomost.
