Finnish startup Innomost has raised €5 million to support their effort to replace palm oil, fossil fuels, and food origin ingredients in consumer products. The funding is expected to be used to establish a pilot plant capable of producing 20 tonnes of birch bark by 2033.
Primarily supplying the cosmetics and personal care industry, Innomost provides biodegradable and renewable ingredients derived from birch trees. Upcycled from forest industry side streams, Innomost’s offerings are environmentally sustainable, as trees are a renewable resource, as opposed to traditional fossil fuel-based materials.
The startup’s current portfolio includes birch charcoal powder, birch bark powder, betulin, suberin, and azelaic acid, ingredients it claims are perfect for innovation in the areas of skincare, haircare, body care, decorative cosmetics, and oral care.
“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,” comments Innomost’s founder and CEO Sami Selkälä.
The funding round was led by Metsä Spring and saw participation from Innovestor and a number of undisclosed angel investors. The round was completed with grants and loans from Business Finland as well as other public financing sources.