Estonian RAIKU secures €8.8M funding from EIC Accelerator
Estonian sustainability startup RAIKU has announced the closing of a €8.8 million funding round led by EIC Accelerator and the private sector. The company has developed an innovative packaging filling material.
- Founded in 2021 by Rain Randsberg, RAIKU is a Tallinn-based packaging and containers manufacturing company. The company has developed a 100% natural alternative to plastic bubble wrap and packaging filling — essentially wooden springs. It is a seemingly simple product, but the complexity lies in its industrial production.
- According to the company, thanks to the product, the volume of the raw material can be increased 15-20 times, no chemicals are needed, as well as very little water and energy. The spring structure is an ideal form for shock absorption.
“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 stated in the press-release.
- European Innovation Council saw the potential in the product and decided to support the company along with unnamed private investors. The European business accelerator supports deep technology companies in the seed and growth stages, which are not yet ready to be financed by private capital.
- The financing will give RAIKU the means to to develop the technology fully, create the first factory, and then scale the production to the wider world. The company’s goal is to reduce the use of packaging material resources dozens of times.