Innomost, a Helsinki, Finland-based startup that upcycles valuable birch bark compounds to replace environmentally harmful ingredients in products from cosmetics to pharmaceuticals, raised €5M in funding.
The round was led by Metsä Spring with participation from Innovestor and angel investors. The round was completed with grants and loans from Business Finland as well as other public financing sources.
The company intends to use the funds to set up a pilot plant in Kokkola, which will be used to test and plan the process for the next industrial-scale plant, capable of producing 20 tonnes of birch bark products per year by 2023, to conduct R&D work, as well as to grow their existing customer base in international markets.
Led by Sami Selkälä, CEO and Founder, Innomost develops and produces high-value bioactive ingredients from forest industry side streams that enable customers to make innovations in the cosmetic beauty industry. Its current product portfolio consists of birch charcoal powder, birch bark powder, betulin, suberin and azelaic acid, which can trigger innovation in all cosmetic product categories including skincare, haircare, body care, decorative cosmetics, and oral care.