Startups in Finland drive sustainability innovation

Finland is all about nature and innovation, so it’s no wonder the country offers great opportunities for startups in sustainability.

Here, sustainability is truly embedded in the culture. Finland has rich natural resources, such as forests, and minerals, but the long distances, harsh winters, and distinct seasons have made efficiency and resourcefulness essential for survival.

" We’ve always needed to focus on sustainability, and using our resources sparingly. This ingrained culture of efficiency has provided a natural foundation for sustainable development, says Outi Suomi, Mission Lead Circular Transition for Zero Waste at Business Finland."

" For us, nature is more than just a resource. There’s profound respect for the environment, and both the people and the organizations take ecological values seriously."

True investment in sustainability

Finland published a strategic program to promote circular economy in 2021. The country is highly educated and thus excels in sustainability areas that require strong research and development.

There’s a particular focus on clean technologies, bio-based materials, circular economy, and smart AI-powered tools that help companies go clean.

Inspiring examples include Origin by Ocean, which turns harmful algae into functional ingredients; Woodly, which manufactures wood-based alternatives to plastic packaging; and Spinnova, making textile fibre from wood pulp or waste, without harmful chemicals.

Sustainability in Finland goes beyond ecological issues. The country is one of the most stable societies in the world, and social values such as equality, trust and well-being are deeply cherished.

"Finland values also social entrepreneurship. We value positive effects on people and planet, not always just financial gains, Suomi says."

In 2024, Finland’s Ministry of the Environment launched the Circular Economy Green Deal, a voluntary commitment where companies and local authorities pledge to cut resource use and drive a low-carbon circular economy. The initiative creates even more new opportunities for startups, too.

"There are funding opportunities, facilitated connections, and information available — and the general mindset supports and values startups, says Outi Suomi, who has worked at startups herself."

A founder’s story: “Finland is different”

Sunil Singh got curious after participating in a Finnish hackathon online during COVID. The experience—and the people—encouraged him to explore the Finnish ecosystem further.

After submitting his startup idea to Business Finland, Singh was granted the Startup Permit. Today, his startup Ilu Space is thriving in Helsinki.

"We provide software that helps companies become more climate resilient."
They can measure their carbon footprint and understand risks like the probability of floods. One of our products is focused on ESG reporting, Singh explains.

"In short, we enable companies to be more sustainable, aligned with regulations, and work toward becoming net zero."

Singh is passionate about sustainability, and that’s why for him Finland is the ideal place to build and grow a startup.

"Finland cares about climate change, the planet, the people, and the transformation toward no carbon. Unlike in many countries, here people know what you’re talking about in sustainability. The state and the people are both aligned, Singh explains."

"Since Trump came to power in the U.S., many climate initiatives were put on hold, and some other countries have followed suit. But Finland is different."

Even small things, like carbon footprint labels on supermarket products, or the respect for second-hand goods, reflect Finland’s respect for nature.

Opportunities in Finland’s startup ecosystem

From universities to companies and startup accelerators, Finland’s startup ecosystems are ready to welcome newcomers.

Founding a startup in Finland is easy, thanks to the wide range of support available, from mentoring to funding and office space. Funding from Business Finland enabled Singh to build his product.

"I set up my company in one day. I didn’t need any lawyers or consultants, it’s that easy, Singh says."

For Singh startup incubators such as NEXUS by the University of Helsinki’s Helsinki Incubators and ESA BIC, the European Space Agency Business Incubator, have been helpful—along with Aalto University and startup hub Maria 01. Singh has also heard great things about the founder community at Kiuas Collective.

"The support systems are real. The startup ecosystem is open and structured. There are government programmes, incubators, funding options—all available for people who want to build step by step, Singh says."

Finland offers something others can’t

Helsinki also offers something most major cities don’t have: work-life balance.

"In places like Mumbai or New York, you’re always working. Here, you get balance, and that helps you make better decisions, Singh thinks. For someone with a family, good quality schooling and health services bring additional peace of mind."

"You can think clearly when your mind is calm. Finland gives you that clarity."

Sunil Singh sees a future in Finland—and encourages others to explore the opportunities here as well.

"If you're serious about building something meaningful, especially in sustainability, Finland is one of the best places to do it."

Want to get started? Discover Finland’s startup scene and what it takes to make it.