1 The EIC Accelerator Project

The EIC Accelerator program is a significant initiative under the European Innovation Council (EIC) aimed at supporting innovative small and medium-sized enterprises (SMEs) and startups, particularly in the DeepTech sector. This program provides a unique blend of funding, including grants and equity investments, specifically designed to help companies scale their innovations and bring them to market.

Funding Structure

The EIC Accelerator offers a blended financing model, which includes grants and equity investments. The grant component can reach up to €2.5 million, intended primarily for covering project costs, including research and development, prototyping, and other preliminary activities necessary for innovation.

In addition to the grant, the program provides equity funding, which was structured to offer up to €15 million until 2024 and is set to reduce to a maximum of €10 million starting in 2025. This equity component is crucial as it allows companies to secure substantial capital that can be used for scaling operations, expanding market reach, and enhancing technical capabilities, while also mitigating financial risks associated with innovation.

Purpose and Role in the Ecosystem

The EIC Accelerator is fundamentally designed to bolster the European DeepTech and startup ecosystem by facilitating access to funding that is often challenging to secure from traditional sources. By providing both grants and equity, the program aims to fill the funding gap for high-risk, high-potential innovations that have significant market potential but may struggle to attract investment due to their nascent stage or technological uncertainties.

Moreover, the EIC Accelerator encourages innovation through a rigorous selection process, assessing the technological innovation, market potential, and impact of projects. This ensures that only the most promising projects receive funding, thereby enhancing the overall quality of innovations within the European market.

Scaling Support

The EIC Accelerator not only provides financial resources but also plays a vital role in helping companies scale. It offers support through advisory services, mentoring, and access to a vast network of investors and industry experts. This comprehensive support structure is designed to enhance the capacity of companies to attract further investment from private sectors, thereby increasing their chances of successful market entry and growth.

Case Study: RAIKU Packaging OÜ

RAIKU Packaging OÜ, an Estonian company, recently emerged as a winner of the EIC Accelerator program for its innovative project, RAIKU bio packaging. The project focuses on the optimization and demonstration of natural, biodegradable packaging solutions derived from wood, tailored for various industries.

Project Overview

The RAIKU bio packaging initiative aims to address the growing environmental concerns associated with traditional plastic packaging. By leveraging natural materials, RAIKU is developing packaging that is not only biodegradable but also customizable in various shapes and forms to meet the specific needs of different sectors. This innovative approach positions RAIKU as a key player in the sustainable packaging market, which is rapidly expanding due to increasing consumer demand for eco-friendly alternatives.

Technology and Background

The technology behind RAIKU bio packaging is rooted in the utilization of wood-derived materials, which are processed to create a sustainable packaging solution. This method involves the extraction of cellulose and other natural compounds from wood, which are then transformed into biodegradable materials suitable for packaging applications.

The background of this technology reflects a broader trend towards sustainability and circular economy principles. With rising concerns over plastic pollution and its detrimental effects on the environment, RAIKU's approach presents a viable alternative that not only reduces waste but also promotes the use of renewable resources.

The project exemplifies the intersection of innovation and sustainability, showcasing how advanced materials science can contribute to environmental solutions while also creating economic opportunities. By participating in the EIC Accelerator, RAIKU Packaging OÜ is positioned to refine its technology further, scale its operations, and ultimately contribute to a more sustainable packaging industry.

In summary, the EIC Accelerator is a pivotal program that not only provides essential funding but also fosters innovation and growth in the European DeepTech landscape. RAIKU Packaging OÜ's project stands as a testament to the potential impact of this initiative in driving forward sustainable solutions that address pressing environmental challenges.

2 The Funding Rounds

# RAIKU Packaging OÜ: Growth Through EIC Accelerator Funding

RAIKU Packaging OÜ is an Estonian GreenTech startup focused on developing eco-friendly packaging materials. Founded in 2021 by Karl Pärtel and Rain Randsberg, the company has created innovative wooden springs for packaging that enhance resource efficiency while being environmentally friendly.

Funding History

RAIKU has successfully secured multiple funding rounds to support its growth and development of sustainable packaging solutions: Pre-Seed Funding (June 2023)

• Amount: €1.2 million
• Investors: Kaamos, Vestman, Little Green Fund, and private investors from Estonia and Finland
• This initial funding helped RAIKU build a team of over 10 people and develop its innovative packaging technology

EIC Accelerator Funding (November 2023)

• Total funding: €8.8 million, consisting of:
• €5.65 million grant from the European Innovation Council (EIC)
• €3.15 million in investments from private sector investors
• The EIC Accelerator funding came after RAIKU submitted its Step 2 proposal on June 21, 2023, and later succeeded in the Step 3 interview

According to CB Insights, RAIKU has raised a total of $10.65 million over 5 funding rounds, with the latest being an Incubator/Accelerator round in October 2024.

Investment Allocation

The significant €8.8 million funding secured in November 2023 is being used to:

Technology and Market Positioning

RAIKU's innovative packaging solution stands out for several reasons:

• Resource Efficiency: The volume of raw material can be amplified 15-20 times without chemicals and with minimal water and energy consumption
• Sustainability: The product is 100% compostable and has a significantly lower CO2 footprint compared to traditional packaging materials like bubble wrap, paper, and cardboard
• Market Demand: The company's primary production is geared mainly for export across Europe, with dozens of international companies already in the queue

Strategic Partnerships

Beyond financial support, RAIKU's partnership with the EIC Accelerator provides additional benefits:

• Participation in various events and trade fairs
• Enhanced business opportunities through EIC networking
• Collaboration with organizations like AIRE (artificial intelligence and robotics center) and Taltech Wood Laboratory to accelerate development

Current Status

As of May 2025, RAIKU continues to scale its operations following the substantial funding received in late 2023. The EIC Accelerator funding has served not only as financial backing but also as a quality mark that enhances the company's credibility with customers and potential investors.

There is no public information available about RAIKU's current valuation or any exit events such as IPOs, buyouts, or acquisitions. The company appears to be in the growth and scaling phase, focusing on expanding its production capabilities and market reach.

Sources: - https://investinestonia.com/estonian-raiku-raises-e8-8m-to-scale-eco-packaging-with-wooden-springs/

• https://app.dealroom.co/companies/raiku
• https://www.cbinsights.com/company/raiku/financials
• https://en.ain.ua/2023/11/07/raiku-secures-8-8m-from-eic-accelerator/
• https://nordic9.com/news/raiku-packaging-in-a-11m-equity-round/
• https://techfundingnews.com/estonian-cleantech-startup-raiku-bags-e8-8m-to-replace-bubble-wrap-with-sustainable-wooden-springs/
• https://ecosystem.startupestonia.ee/transactions.rounds/f/investors/~european_innovation_council~
• https://www.inclimate.com/company/13039/r/rechEet2bvUU93vN1

3 The Press Releases

RAIKU Packaging OÜ: Post-EIC Accelerator Funding Developments Estonian cleantech startup RAIKU Packaging OÜ, co-founded by Karl Pärtel and Rain Randsberg in 2021, has made significant strides since securing €8.8 million in combined EIC Accelerator and private funding in late 2023. The company’s innovative packaging material—composed entirely of wood-based "springs"—expands raw material volume by 15–20x without chemicals, using minimal energy and water while providing superior shock absorption.

Key Developments Since EIC Funding

• LVMH Accelerator Partnership: In July 2024, RAIKU joined Season 10 of LVMH’s accelerator program, collaborating with 75 luxury brands to integrate its compostable packaging into high-end sectors like fashion and cosmetics.
• Factory Expansion: The company is advancing plans for its first production facility and evaluating a second factory in France to meet growing European demand.
• Technology Advancements: RAIKU is finalizing fully automated industrial lines with support from AIRE (AI/robotics), Taltech Wood Laboratory, and MindTitan for AI-driven optimizations.
• Sustainability Impact: Their material reduces wood use by >90%, energy by 98%, and water by 99.9% compared to paper/cardboard, aligning with EU Green Deal objectives.

Strategic Focus Areas

RAIKU prioritizes scaling production for export markets while maintaining chemical-free circularity—its packaging decomposes into nutrients post-use. The EIC partnership provides access to trade fairs, networking events, and investor channels to accelerate commercialization.

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Sources

• Estonian green packaging startup RAIKU collaborates with LVHM
• RAIKU raises €8.8M
• Viva Technology profile
• EIC funding announcement

In-text citations marked as footnotes ([#]) correspond to these sources sequentially.

4 The Technology Advancements

RAIKU Packaging OÜ: Post-EIC Accelerator Funding Advancements Estonian cleantech innovator RAIKU Packaging OÜ has made significant strides since securing an €8.8 million grant and equity deal from the European Innovation Council (EIC) Accelerator in late 2023. The funding, aimed at scaling its sustainable packaging technology, has enabled the company to advance production capabilities, expand market reach, and solidify partnerships with global luxury brands.

Current Capabilities

RAIKU’s core offering remains its 100% natural, compostable packaging material derived solely from wood. The patented spring-like structure provides superior shock absorption for fragile items like glass and ceramics while maintaining aesthetic appeal. Key operational metrics include:

• Resource efficiency: 1 m³ of wood yields 15–20 m³ of packaging material.
• Environmental impact: Uses 90% less wood, 98% less energy, and 99.9% less water compared to traditional paper/carton production.
• Circularity: Fully compostable without chemical additives or microplastic residues.

Post-Funding Advancements

Since receiving EIC support in late 2023:

Technology Improvements & Features

While no explicit details about new patents or technological upgrades are disclosed post-EIC funding, RAIKU emphasizes ongoing scaling of its proprietary manufacturing process to achieve “radically lower footprint” outcomes aligned with EU Green Deal targets. The EIC grant supports further development of their light-weight modular production systems for international deployment, suggesting incremental refinements rather than fundamental redesigns.

Market Demonstrations & Pilots

RAIKU’s participation in high-profile accelerators and trade fairs serves as key validation:

• Luxepack Paris Award – Won the Green Packaging Award pre-EIC funding (2023), establishing credibility among luxury sector stakeholders who later joined LVMH collaborations post-funding .
• Client Pipeline Growth – Reports indicate active engagements with brands awaiting bulk orders after initial pilot batches , though specific customer names beyond LVMH remain undisclosed publicly.

Intellectual Property & Publications

Publicly available data does not mention new patent filings or peer-reviewed studies since mid-2023. However:

• Earlier proprietary processes for converting raw wood into spring-like structures form their IP foundation , likely protected pre-funding given EIC’s strict due diligence on uniqueness criteria ..
• White papers focus on lifecycle analyses comparing RAIKU’s carbon footprint (<0.05 kg CO₂e per kg) against conventional materials like bubble wrap (>2 kg CO₂e), though publication dates are unspecified..

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Sources Used:

Viva Technology Partner Profile

5 The Partnerships and Customers

RAIKU Packaging OÜ: Advancements and Partnerships

RAIKU Packaging OÜ, based in Estonia, has made significant strides since receiving the EIC Accelerator funding in June 2023. The company specializes in creating 100% natural, compostable packaging materials, designed to replace single-use plastics with a focus on sustainability and low carbon footprint.

Partnerships and Customers

One of the most notable partnerships for RAIKU is with LVMH, the largest luxury goods conglomerate in the world. RAIKU was selected for LVMH's Accelerator program, among over 1,500 applicants, which connects its innovative packaging to more than 75 luxury brands like Louis Vuitton and Christian Dior. This collaboration highlights RAIKU's potential to transform the packaging market, particularly in the luxury sector.

New Relationships and Their Purpose

The partnership with LVMH aims to integrate RAIKU's eco-friendly packaging solutions into the luxury goods market. This alliance not only boosts RAIKU's market presence but also aligns with LVMH's sustainability goals, such as reducing environmental footprints and meeting consumer demands for sustainable practices.

Market Positioning and Advancements

RAIKU's involvement with LVMH will enhance its market positioning by associating its brand with high-quality, sustainable luxury packaging. Additionally, the collaboration is expected to drive technology advancements and scaling by leveraging resources and expertise from both parties. RAIKU's participation in the LVMH Accelerator will provide access to coaching, mentorship, and exposure to luxury markets, further accelerating its growth.

Scaling and Technology Advancements

The funding from the EIC Accelerator, along with private investments, is being utilized to develop fully automated industrial lines and expand production globally. RAIKU is planning to establish a new factory in France, which will significantly increase its capacity to supply eco-friendly packaging solutions to a broader market. Strategic collaborations with entities like the AIRE center for AI and robotics, Taltech Wood Laboratory, and MindTitan support RAIKU's technological advancements and scalability.

Conclusion

RAIKU Packaging OÜ's recent partnerships and funding position the company for substantial growth in the eco-friendly packaging sector. By collaborating with major brands like LVMH and leveraging advanced technologies, RAIKU is poised to set new standards in sustainable packaging solutions.

Sources: - RAIKU Packaging - Profiles - Decarbonize.co

• Estonia-based RAIKU raises €8.8M to develop eco-friendly packaging alternatives
• RAIKU
• RAIKU from Estonia secures €8.8M to innovate Eco-Friendly Packaging Solutions
• Estonian startup Raiku collaborates with Louis Vuitton
• RAIKU Collaborates with LVMH – Moët Hennessy Louis Vuitton

6 The Hiring and Company Growth

RAIKU Packaging OÜ: Team Growth and Hiring Strategy Post-EIC Accelerator Funding

RAIKU Packaging OÜ, an Estonian cleantech startup specializing in 100% natural, compostable packaging materials, has demonstrated notable team expansion and operational scaling since securing €8.8 million from the European Innovation Council (EIC) in 2023.

Current Headcount and Growth
As of Q4 2024, RAIKU reported 16 employees, reflecting a quarterly increase of two hires. This growth aligns with its post-funding phase, which includes establishing a pilot factory and preparing for a second facility in France following its collaboration with LVMH’s accelerator program. While specific hiring campaigns are not detailed publicly, the company’s participation in high-profile partnerships suggests active recruitment to meet production and innovation demands.

Key Positions and Scaling Strategy
Though exact roles are unspecified, RAIKU’s focus on manufacturing expansion (e.g., French factory plans) implies hiring across engineering, operations, and sustainability sectors. The company’s material innovation—a wood-based alternative to bubble wrap used by luxury brands like Louis Vuitton—necessitates specialized talent in materials science and supply chain logistics. New team members likely support:

• Production scaling: Achieving higher output volumes for global clients.
• R&D: Enhancing material durability and customization (e.g., color/scent options requested by clients).
• Sustainability compliance: Maintaining low carbon footprint metrics critical for luxury sector partnerships.

Management Continuity
Founding leadership remains active: co-founder Karl-Joosep Pärtel[name corrected from sources] emphasized LVMH’s endorsement as validation of their technology’s market potential, while decision-maker Rain Randsberg[as listed in financial records] oversees strategic operations1^†^. No major management changes are reported post-EIC funding.

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Sources

• RAIKU PACKAGING OÜ - Inforegister
• Collaboration with LVMH - TradeWithEstonia
• Official Website - Raiku.co
• LVMH Accelerator Details - InvestInEstonia
• Eco-Friendly Packaging Launch - ERR News

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† Discrepancy noted: Karl-Joosep Pärtel is cited as co-founder in media reports; Rain Randsberg appears as main decision-maker in financial records.

7 The Media Features and Publications

RAIKU Packaging OÜ: Media Presence and Public Engagements

Media Features and Publications
RAIKU has been featured in multiple international publications highlighting its sustainable packaging innovations. Estonian outlets like ERR News and Estonian World covered the company’s collaboration with luxury conglomerate LVMH, emphasizing its 100% natural wooden spring-like material as a biodegradable alternative to plastic bubble wrap. The European Innovation Council (EIC) showcased RAIKU’s EIC Accelerator project, detailing its €2.5 million EU grant for scaling production of compostable packaging. Invest in Estonia published articles on RAIKU’s €8.8 million funding round and expansion plans, including a potential factory in France following partnerships with LVMH brands like Louis Vuitton and Dior.

Podcasts and Interviews
Co-founder Karl-Joosep Pärtel appeared on the Estonian TV show Ringvaade, explaining how RAIKU’s alder wood spirals minimize environmental impact while meeting luxury industry demands for aesthetics and functionality. The interview highlighted customer requests for custom colors and scents, underscoring the material’s versatility.

Conference Participation and Events
RAIKU participated in the LVMH Accelerator Program (Season 10) from July 2024 to July 2025, joining over 75 global brands to pilot its packaging solutions. The company was also listed in the EIC Summit 2024 Project Exhibition, promoting its modular production technology for international markets. Additionally, RAIKU attended trade fairs linked to luxury goods and cleantech sectors, leveraging events organized by LVMH Open Innovation to engage potential clients.

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Sources

• ERR News: Eco-friendly bubble wrap substitute
• Estonian World: Collaboration with Louis Vuitton
• EIC Project Exhibition
• Invest in Estonia: €8.8M Funding Announcement

-auto-conflict-corrected- -Invest in Estonia: LVMH Accelerator Partnership -Ringvaade Interview Coverage