Finnish startup Fiberdom just secured €3.5 million to take its 100 percent plastic-free material innovation to the next level. The Vantaa-based company is on a mission to replace non-essential plastics with sustainable, scalable, and high-performance alternatives and now it has the financial backing to scale big.
The new round was led by existing backer Heino Group and joined by two new investors, Nordic Foodtech VC and Holdix Oy. It also includes a €600k grant from Business Finland, marking a significant boost at a time when early-stage climate tech funding is under pressure across Europe.
Fiberdom has created a fully plastic-free, formable, and durable material made from FSC-certified wood fibres. It’s strong, lightweight, cost-efficient, home compostable, and recyclable making it a true circular solution in a world desperately looking for plastic alternatives.
Tomi Järvenpää, General Manager at Fiberdom, says the funding validates the team’s vision and technology. “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,” he said. “We’ve tested our material in countless applications and discovered that it has massive potential.”
Founded in 2019, the company has already commercialized its first product: single-use cutlery that complies with the EU’s Single-Use Plastics Directive. These utensils are now available through major Finnish retailers and B2B partners, positioning Fiberdom as an early mover in a growing space.
According to Pekka Siivonen-Uotila, partner at Nordic Foodtech VC, the material’s functionality, scalability, sustainability, and recyclability hit all the key requirements for widespread adoption. “Replacing single-use plastics in food packaging and on-the-go consumption is one of the most urgent pain points in the food system,” he said. “We believe cutlery is just the starting point for a wave of plastic-free innovation.”
Demand for alternatives to plastic is accelerating fast. With regulations tightening and consumer preferences shifting toward sustainability, industries are racing to find viable replacements for fossil-based materials. One of the biggest challenges for fiber-based materials has been their inability to meet the performance demands of plastic especially in formability and strength without introducing non-recyclable additives.
That’s exactly where Fiberdom’s tech stands out. The company claims its proprietary material handles tough use cases without compromising environmental goals. This opens up potential across a wide range of industries beyond foodservice, including packaging, food containers, and even components traditionally made with composite materials.
The opportunity is massive. The global fiber-based packaging market alone is projected to grow from €377 billion in 2025 to €525 billion by 2034, driven by regulatory pressure and the rise of eco-conscious consumers. That growth is creating room for new materials to take center stage, especially those that balance performance with genuine sustainability.
Fiberdom is now gearing up to scale. Its commercial pilot factory in Vantaa is already producing material, and the team is ready to move beyond single-use cutlery into broader product categories. With strategic partnerships and industrial customers already showing interest, the company is well-positioned to expand its reach across Europe and beyond.
“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 company’s next phase will focus on growth and commercialization. That means expanding production capabilities, forming new partnerships across the packaging and consumer goods sectors, and further refining the material for a range of applications. The long-term goal is ambitious but simple replace non-essential plastics, category by category, with high-performance, circular alternatives.
In a world that’s increasingly rejecting plastic, Fiberdom’s timing couldn’t be better. As industries look for sustainable materials that don’t sacrifice quality or cost-efficiency, Fiberdom is offering something rare an actual replacement, not just a compromise.
