Elea & Lili, a deep-tech biomaterials company spun out of VTT Technical Research Centre of Finland, has raised €2.5 million in seed funding to commercialize its cellulose-based superabsorbent material designed to replace fossil-based polymers used in hygiene and agriculture.
The funding round was led by Lifeline Ventures, with participation from Ikorni Invest Oy Ab and Baltiska Handels Sverige AB. The capital will support pilot production, industrial partnerships, regulatory validation, and initial commercial launches in the United States and Europe.
The company’s core innovation, Cellulose Super Absorbent (CSA™), is a biodegradable, microplastic-free alternative to conventional superabsorbent polymers commonly used in disposable diapers and agricultural products. These traditional materials contribute significantly to long-term plastic waste and microplastic pollution.
Elea & Lili’s technology is built on more than a decade of biomaterials research conducted at VTT, with the intellectual property transferred to the startup. The material is designed to match the performance of existing fossil-based absorbents while remaining compatible with current manufacturing processes.
The initial focus is on two large global markets, disposable diapers and agriculture. Disposable diapers alone generate nearly 40 million tons of waste annually, with approximately 170 billion diapers produced each year. In agriculture, fossil-based absorbents are mixed into soil, leading to persistent plastic contamination.
The company is also positioning itself to benefit from upcoming regulatory changes. From 2028, European Union regulations are expected to restrict the use of persistent fossil-based plastics in soil, creating demand for biodegradable alternatives like CSA™.
Elea & Lili is working with established cellulose and biomaterials companies to scale production from pilot to industrial levels, aiming to create a new category of sustainable materials at global scale.
The funding will be used to expand the team, advance industrial validation, develop initial diaper products, and accelerate agricultural field trials.
KEY QUOTES:
“Hygiene and agriculture are equally strategic entry points for us. In both markets, absorbent materials are mission-critical components, and today they are fossil-based. We are replacing them with a scalable biomaterial.”
Tatu Miettinen, CEO And Co-Founder, Elea & Lili
“In 2019, the birth of my daughter Elea was medically complex and involved time in neonatal intensive care. The experience profoundly reshaped our family’s perspective. At that moment I decided, if she recovers, I will dedicate myself to building something meaningful and sustainable for the next generation.”
Tatu Miettinen, CEO And Co-Founder, Elea & Lili
“I have been waiting for a non-fossil alternative, and Finland’s top expertise in biomaterials makes it natural for it to emerge from here. Today, a good part of those 170 billion diapers remains in our soils forever, and we grow food in microplastics.”
Timo Ahopelto, Founding Partner, Lifeline Ventures
“VTT’s role is to accelerate growth, renew industries and strengthen resilience through technology and innovations. Creating new startups and supporting growth companies is one of the core aspects of our impact, and this startup is a great example.”
Atte Virtanen, Vice President For Biomaterial Processing And Products, VTT Technical Research Centre Of Finland
