Tallinn-based greentech startup RAIKU recently secured €8.8 million in funding from the EIC Accelerator and private investors. The funding serves as a crucial endorsement, signaling the significance of RAIKU’s technology in addressing environmental challenges. This support not only provides financial resources but also acts as a prestigious endorsement that can attract customers and future investors. The EIC Accelerator’s involvement includes participation in events, trade fairs, and ongoing business opportunities.
RAIKU’s innovative technology involves chemical-free and compostable packaging material in the form of wooden springs. While seemingly simple, the industrial production complexity lies in its resource efficiency—increasing raw material volume 15-20 times without chemicals, minimal water, and energy usage. This aligns with RAIKU’s goal to significantly reduce packaging material resources, especially considering that only about 60% of packaging in Europe is currently recycled.
The support and investment will give RAIKU the means to fully develop the technology of chemical-free and compostable packaging material, create the first factory and then scale the production to the wider world. Our primary production is already going mainly for export across Europe, and dozens of international companies are waiting in line. The European Innovation Council agreed that our technology can make a significant contribution to meet the European Union’s Green Deal goals and that our products and production technology have a unique value proposition.
RAIKU’s goal is to reduce the use of packaging material resources dozens of times. “In Europe, only about 60% of packaging is recycled, and we generate tens of millions of tons of packaging waste every year. In addition, the carbon footprint of production processes are often understated.”
RAIKU has developed an innovative packaging filling material – essentially wooden springs. It is a seemingly simple product, but the complexity lies in its industrial production. The charm of the product lies in its very high resource efficiency – the volume of the raw material can be increased 15-20 times, no chemicals are needed, and very little water and energy. The spring structure is an ideal form for shock absorption.
The business accelerator EIC Accelerator supports deep technology companies in the seed and growth stages, which are not yet ready to be financed by private capital. Using a unique combination of public sector grants and long-term equity investment, EIC has set itself the goal of becoming the largest early stage deep technology investor in Europe.
Originally published on ArcticStartup : Original article