ImpactAlpha, September 5 — European Circular Bioeconomy Fund, a German venture capital impact fund, and global sustainability investor Ecolab are joining the $25 million Series A investment in Paptic’s wood fiber-based materials to replace plastics in packaging.
“Our investment will provide Paptic with the resources to serve growing demand for innovative packaging materials,” said ECBF’s Guillaume Gras. Around 100 global customers in 35 countries use the Finnish company’s materials for packaging.
Capital blend
Separate from the investment round, Paptic secured a €10 million non-dilutive loan from Finnish Climate Fund, as well as a €2.5 million grant from the European Innovation Council’s accelerator program to hone its manufacturing technology.
Investors in Paptic’s Series A financing include Japanese trading house Itochu. “It took us a while to close, but we wanted to have the right investors [and] the right amount, and we even left some money on the table” said Paptic’s Tuomas Mustonen.
