Spinnova gets EUR7.5M in debt and adds Maki VC and Beata Domus as new investors in the company.

Spinnova, a Jyväskylä, Finland-based company that develops low-cost and environmentally sustainable technologies for making fabrics, announced securing EUR 7.5M in debt financing.

The financing is provided by the Finnish public funding agency Business Finland and OP Bank. OP has granted Spinnova Innofin loan financing of EUR 4.5M guaranteed by the European Investment Bank, while Business Finland is providing a loan of EUR 3M. Spinnova and Business Finland have been partners for three years.

The funding will ensure the next phase in the company’s growth story as the company will ramp up its pilot factory in Finland this year.

At the same time, the company announced that its investor, VTT Ventures, exited the ownership position in the company, as it sold its stake to two Finnish investors - Maki VC and Beata Domus.

Spinnova, founded in 2014 by CEO Janne Poranen, uses wood fibers to produce filaments and yarns that can replace cotton, viscose and other raw materials in both woven and nonwoven applications.

The company has a Brazilian corporate investor, Fibria, which bought 18% of the company for EUR 5M in 2017.