September 24th, 2015
Paptic Ltd is a Finnish startup company founded in April 2015. Paptic's new patented technology enables the manufacturing of a revolutionary new fiber product with plastic-like properties. It can replace plastic, for example, in carrier bags and packaging. The company raised a seed investment round of EUR 1.1 million euros in April.
The company uses a new technology platform developed at VTT Technical Research Centre of Finland, based on long-term research in fiber products and processes.
A global opportunity for the Finnish bioeconomy
"Paptic is a practical example of Finnish excellence in the wood-based bioeconomy. Our innovations are world-class and the possibilities are staggering. 100 billion plastic bags are used every year in Europe alone. Anyone can conclude what kind of opportunities that brings. Our first product is a direct response to the EU directive that seeks to reduce plastic bags usage," says Tuomas Mustonen.
"Our purpose is to help resolve a major global environmental problem: the accumulation of plastic waste in the oceans and amongst marine life. If all the plastic waste already in the oceans was gathered up and put inside plastic bags there would be around 15 bags per metre of the world's coastline. Already 70% of the material used in the PAPTIC Bags is renewable and biodegradable, and it can be recycled."
A demo plant will be established in Espoo to manufacture wood fiber material
The manufacturing of the PAPTIC product will be started on a small scale in the autumn of 2015 at the KCL pilot plant in Espoo. Paptic and KCL are working together to adapt the paper machine for development and production of PAPTIC material. The machine will be used for pilot test campaigns conducted jointly with end-user customers and carrier bag supply chain. "We will gain more experience throughout the value chain, the ability to produce a product, all the way from the paper machine to retail checkout and the consumer."
PAPTIC material will be produced at an industrial level with paper machines equipped with PAPTIC technology and the aim is to start the industrial production and sales of PAPTIC material in 2016. The company is currently looking for value chain partners for testing industrial production and commercial cooperation.
Paptic Oy is a Finnish start-up company, which was founded in April 2015. The company is a spin-off of the VTT Technical Research Centre and the PAPTIC technology is based on VTT research and development work. The company focuses on sustainable technologies as well as the sales and marketing of wood-based renewable and recyclable products. Paptic's goal is to bring a new PAPTIC fiber material with plastic-like properties to the market by 2016.
The company currently employs three founders and one employee. The company raised a seed investment round of EUR 1.1 million in April. In addition to the founders the company has received investment from Proxy Ventures, Besodos Investors, VTT Ventures and seven private individuals.
"PAPTIC(R) is a fine example of VTT's technology capability transformed in to problem-solving solution with major/significant global business potential.", Antti Sinisalo, CEO, VTT Ventures.
VTT Ventures is the venture capital arm of VTT Technical Research Centre of Finland. The firm provides the entrepreneurs with professional business development support from business planning to funding. It seeks to invest in high-tech companies and to stimulate innovation in Finland. Read more: www.ventures.fi
"PAPTIC(R) is an answer to a global multibillion problem. Environmentally friendly and financially efficient, we believe the team has the skills and backing to build PAPTIC into a globally recognised materials brand", Miia Bovellan, Founding Partner, Proxy Ventures.
Proxy Ventures, based in London, is the world's first venture capital firm building brands for all its portfolio companies. It's recent investments include braintraining platform Peak, ring-sized wellness computer Oura and adventure booking platform Faralong.com.
"Plastics need to be replaced with new innovations before the damage to our environment is irreversible. PAPTIC ® does just that. It brings a novel wood fiber based material to the market to replace plastic bags. We want to be part of this sustainable change and are delighted to back the Paptic-team in its efforts to change the packaging industry", Hanna Liiri, Managing Partner, Besodos Investors Oy.
Besodos Investors Oy, based in Helsinki, is a private family owned investment company.