€8.8 million funding by the EIC Accelerator and private sector
If somebody tells You that you have ca 4% chance to succeed then will you go for it, even if it means hundreds of hours of work and over a year to wait for the decision?
Absolutely. That’s exactly what just happened to us since the EIC Accelerator (European Innovation Council) agreed that RAIKU is a key technology to bring down Europe’s packaging carbon footprint. It’s one of the most difficult and competitive support mechanisms, but totally worth it.
We received a nearly € 9 million deal that will push this innovation to the market!
Given the current economic climate, this kind of financing is ideal for us. It’s also a very important quality mark for both customers and future investors, because we have run through the gauntlet of experts and investors. In addition, the EIC will involve us in various events, trade fairs and provide overall business opportunities through-out the years to come.
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.