Finnish start-up Innomost has raised €5MM to bring their birch bark innovation into new markets as a sustainable alternative for environmentally harmful ingredients in consumer products.
WHO: Innomost is a Finnish start-up founded in 2016 that develops and produces high-value bioactive ingredients from forest industry side streams that enable its customers to make groundbreaking innovations in the cosmetic beauty industry. By using birch bark side streams, Innomost can upcycle naturally occurring raw materials that would normally be used for energy production or other lower-value purposes into high-quality products. The products are more environmentally sustainable, as they derive from a renewable carbon source rather than similar fossil fuel-based materials. Innomost's current product portfolio consists of birch charcoal powder, birch bark powder, betulin, suberin, and azelaic acid. These ingredients are perfect for innovation in all cosmetic product categories including skincare, haircare, body care, decorative cosmetics, and oral care.
WHY: The funding will be used to set up a pilot plant in the company’s hometown of Kokkola to test and plan the process for the next industrial-scale plant. Innomost aims to build a production facility capable of producing 20 tons of birch bark products per year by 2023. The capital will also be used to further R&D work, as well as growing their existing customer base in international markets.
IN THEIR OWN WORDS: "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," said Sami Selkälä, CEO and founder of Innomost.
"We are very grateful to our investors for seeing the potential in our innovation. We have several other industries in our sights that can all replace negative impact products and materials, including pharmaceutical, technochemical, textile, and nutraceutical industries," Selkälä continues.
"Innomost is developing a business idea, in which birch bark, a side-stream of Metsä Group's operations, is valorized to high-value products for the cosmetics and personal care industry. In other words, this is exactly the kind of development that Metsä Spring would like to catalyze. We are very much looking forward to helping Innomost reach its milestones and goals," says Erik Kolehmainen, VP of Corporate Venturing at Metsä Spring Ltd.
"We have launched a couple of products in Lumene's cleansing line with two different Innomost ingredients—ßFinnish birch bark powder to replace microplastics in exfoliating products and Finnish birch charcoal powder for the cleansing of oily skin. Our cooperation continues and we are looking for new ideas and solutions, especially for skincare," says Tiina Isohanni, VP R&D and Sustainability at Lumene, one of Innomost's clients.
"It is not only a question of ingredients. Lumene can also obtain expertise and experience from Innomost's knowledge of wood chemistry and the wood industry. When combined with Lumene's knowhow of formulating cosmetic products and evaluating product safety and efficacy, the cooperation becomes very valuable for both parties," she concludes.
Innovestor Partner Myron Seto adds, "The market potential, particularly in cosmetics, is very sizable, and Innomost has developed a new industrial technology that can disrupt the global market supply. We look forward to tracking Innomost's growth as they scale up production with its new pilot plant, displacing non-eco-friendly products with the use of natural betulin."
2 Article(s) Remaining