Impact investors back Papershell for first industrial plant: ‘We are building competitiveness in Europe – not in China’
Nordic investors have poured €13m into Stockholm-based biomaterials startup Papershell, backing its first industrial-scale factory and potentially unlocking a path to tens of millions in EU support.<br><br>“We are creating competitiveness here, not in China,” Anders Breitholtz wrote in a text message to Impact Loop.
Prominent Norwegian and Swedish investors have injected about €13m in Stockholm-based biomaterials company Papershell, backing the construction of its first industrial-scale production plant and positioning the company for significant EU support.
The oversubscribed funding round was led by DNB Asset Management and Kistefos, alongside Swedish venture firm Course Corrected and Carrick, a Swedish family office. The investors are backing Papershell as it moves from pilot-scale production to full industrial manufacturing in Tibro, western Sweden.
"If Sweden intends to reindustrialise the West and build sustainable and resilient industries, funds are needed. Dare to invest. Learn from mistakes. That's what makes us create competitiveness here and not in China," founder and chief executive Anders Breitholtz told Impact Loop in a text message following the announcement today.
Nordic circular champion?
Founded in 2019 by Breitholtz and Mathieu Gustafsson, Papershell produces a bio-based material made from pressed, recycled cardboard, designed to replace plastic, fibreglass and aluminium in industrial applications. One target market is printed circuit boards, a sector currently dominated by fossil-based materials and Asian supply chains.
Today’s investment follows a preliminary decision by the European Innovation Fund (EIF) to award Papershell up to €40m in grants, part of Brussels’ push to scale low-carbon industrial technologies in Europe.
The EU funding is conditional on Papershell securing the remaining private financing required for the project. The company estimates the total cost of expanding its Tibro pilot plant into a full-scale factory at €83mn.
Given the €40m commitment from the EU, and today’s €13m round, Papershell still needs to raise around €30m. Breitholtz said the company plans to secure the remaining co-financing in 2026 and 2027.
Pictured: Anders Breitholtz (Papershell), Gry Edvardsen Bergan (DNB Asset Management); Course Corrected founders Christine Ahlstrand, Katja Bergman, and Kerstin Cooley; Bengt A. Rem (Kistefos).
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