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Emerald has chosen to make a significant investment into Paptic, a sustainable packaging innovator

by | Feb 9, 2024

Emerald Technology Ventures is the pioneering company from Cleantech venture capital and they have made the decision to make an investment into a sustainable packaging innovator business, Paptic. This company’s primary focus is on replacing plastic packaging and supplying environmentally friendly alternative packaging solutions.

Emerald Technology set up a large funding plan, which constituted of two separate funding rounds. The second closing of the growth financing occurred at the end of last year (2023) and totalled EUR 4.5 million. This round was led by the UB Forest Industry Green Growth Fund (UB FIGG), along with Emerald Technology Ventures, SIG InnoVentures, and EIC Fund. The round which closed first, was led by Paptic and altogether, it raised EUR 23 million. Throughout the whole funding round which took place in 2023, the company closed EUR 27.5 million in growth financing. This is an excellent result and extremely beneficial to the Finland-based company, as it will enable them to grow and expand their product line. Plus, it will also open the opportunity for the company to look into new areas where its technology advanced solutions could be of use.

The whole funding round program, highlights Emerald’s commitment to assisting and accelerating innovation within the packaging ecosystem, especially on a larger scale. This is shown because this funding round is Emerald’s second investment into sustainable packaging.

Now that the funding round is complete, the next step is to focus on marketing Paptic’s packaging solutions and to grow this market. Paptic stated that they will be focusing their marketing efforts on the buoyant consumer segment, such as companies that are still using plastic film and single-use paper, especially the materials which are made with older or dated technologies.

This marketing is occurring at a prime time, as it has become increasingly clear that stakeholders from consumers and governments to large companies are now starting or are already in the transition phase of pushing themselves and other companies away from utilising single-use plastics. This movement is also occurring for throughout other industries, as the EU, China and California have passed rules, which push companies towards limiting the use of non-recyclable, non-compostable packaging materials.

This drive towards a more eco-friendly and plastic free packaging world, is one of the main reasons why Emerald has chosen to invest in Paptic, as this company has had a lot of success within the sustainable packaging industry. Some of Paptic’s breakthroughs so far include a patented process that works through converting renewable wood fibers into soft, flexible packaging material. This packaging material is bio-based, reusable, and recyclable, even on a larger scale. Paptic has created a range of materials which all offer a unique combination of benefits including sustainability, strength and they can also be manufactured with the use of the pre-existing paper production lines. The materials this company manufactures, have been designed to replace plastic, as well as other single-use materials which are used in various flexible packaging applications. These applications include electronics, fashion, dry food, and hygiene packaging. Paptic started producing their items in 2018 and these items are now available to buy in fifty countries, located throughout the world.

Emerald Partner, Fredric Petit, commented, “Paptic is working at the cutting-edge of packaging, taking a novel approach to solving the huge and growing problems inherent in the current industry. Our investment is a mark of confidence in Paptic’s ability to play a vital role in helping to reduce waste and improve consumer value in packaging.”

Paptic CEO and co-founder, Tuomas Mustonen, added, “The new capital that we’ve raised during the past year puts us in a strong position to invest in our people, technology and product development for international brands who are seeking sustainable alternatives to replace plastics in their packaging. We are excited to focus on our next steps and future growth.”

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