Betolar to receive a EUR 7 million capital loan from the Finnish Climate Fund for digital platform development
The state-owned Finnish Climate Fund has decided to award a EUR 7 million capital loan to Betolar for the development of Betolar's AI platform utilising the side stream database and Betolar's digital marketplace. This is the first time that the Finnish Climate Fund has funded a digital solution.
HELSINKI, Nov. 26, 2021 /PRNewswire/ -- "Our aim is to create a business ecosystem based on data generated from geopolymer technology to supplement our business model. The marketplace boosting the emission reductions is a significant part of Betolar's long-term AI utilisation strategy. Funding received from the Finnish Climate Fund plays a clear role in our business and financing plan," says Matti Löppönen, CEO of Betolar.
What is new in this funded solution is that the side streams and other raw materials used to replace cement and recipes for their combinations are being brought to a digital platform. The aim of the platform is to act as a digital marketplace for Betolar solutions in the future and as a meeting place for concrete product manufacturers and industrial side streams producers.
The smart platform business model aims at strengthening the reduction of emissions created by raw materials used in construction on a broader scale than before the digital solution.
"Betolar is the first digital solution funding recipient of the Finnish Climate Fund and, if successful, this solution will have large-scale emission reduction potential globally," says Paula Laine, CEO at the Finnish Climate Fund.
The capital loan is especially targeted at the commercialisation of the platform. The loan will be disbursed in three instalments on the basis of the achievement of the digital platform commercialisation milestones agreed between Betolar and the Finnish Climate Fund. The loan is priced in accordance with the market-conform interest rate pursuant to the EU's interest rate reference table, including the interest premium.
"Significant funding needs and risks are associated with a company seeking strong growth. In Betolar's financial plan, different parts complement each other and form an entity in terms of allocation and risk sharing," says Laine about the funding decision.
During the previous funding rounds, Betolar has collected approximately EUR 9 million from capital investors. On 18 November 2021, the company announced that it is planning to apply for its shares to be listed on the Nasdaq First North Growth Market Finland marketplace through an initial public offering (IPO) with the aim of accumulating capital of EUR 30 million.
"With the Finnish Climate Fund's loan, we aim at enhancing our development work, thereby accelerating the positive climate impacts of our solution globally," says Löppönen.
The key investors during the previous funding rounds were Ajanta, Ahti Invest, Entrada, Kiilto Ventures, Kilo Invest, Nidoco, Taaleri, Voima Ventures and Valve Ventures. If the planned IPO is realised, the anchor investors will be Ilmarinen Mutual Pension Insurance Company, certain funds managed by SP-Rahastoyhtiö Oy, Ahlström Invest B.V., Nidoco AB, Seafarer's Pension Fund and S-Pankki Fenno Osake. The investors have undertaken to subscribe to IPO shares totalling approximately EUR 24 million.
Betolar Plc
Communications
For Betolar media inquiries:
Jo Hooke, Gong Communications: Jo.Hooke@gongcommunications.com +44 (0) 20 7935 4800
For Climate Fund media inquiries:
Saara Mattero, Director, Communications, Climate Fund, tel. +358 400 114 777, saara.mattero@ilmastorahasto.fi
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