De-Risking Roadmap to TLR6

Investment Round 500k €, Pre-Seed

250k € Equity + 250k € Business Finland, span of 16 months. The purpose of this round is to eliminate the three remaining risks preventing commercial scale-up and licensing. 

Term Sheet

Terms

• The Raise
  • 250 k pre-seed
    • Business Finland matching 250 000 € (total 500 000 €)
• The Terms
  • Equity: 10 % of the company
  • Instrument: Ordinary shares
  • Pre‑money valuation: 2,25 M €
  • Minimum ticket: 5 000 €
  • Closing: 30.11.2026
• Use of Funds
  • Funding enables completion of TRL6 and elimination of the three core risks blocking commercialization:
    • Pilot line: continuous production, predictable OPEX
    • Raw material consistency: stable sphagnum properties, sustainable harvesting model
    • Customer validation: documented yield improvement in real use cases
  • Licensable production concept: process design, capacity model, brand, cost structure
• Outcome of This Round
  • A commercialization‑ready TRL6 technology
  • A scalable, documented production concept
  • Validated market demand
  • A clear path to seed round (1-2 M) at a higher valuation
  • A solid foundation for licensing agreements
• Why Now
  • EU peat phase‑out, structural demand for alternatives
  • No scalable sphagnum‑based production concepts on the market
  • High‑margin licensing model, capital‑efficient growth
  • Strong valuation uplift expected after TRL6

Risks

Raw Material Risk

Can sustainably harvested sphagnum be supplied with consistent physical properties at commercial scale?

Commercialization requires a repeatable raw material specification, responsible harvesting model and a scalable supply chain capable of delivering consistent substrate performance across production batches and markets. The objective is not only to secure raw material, but to create a repeatable supply model that can support international licensing and predictable substrate performance.

Types of raw material risks

1. Availability 
2. Quality
3. Sustainability

Fully eliminating the risk is built on following steps:

1. Raw Material Specification

   1. Milestone: SmartMoss raw material standard documented and completed

      1. Success criteria: 3 batches of material with identical properties

2. Sustainable Harvesting Protocol

   1. Milestone: sustainable harvesting protocol validated

3. Landowner Incentive Model

   1. Goal: A revenue-sharing model aligning the interests of SmartMoss, harvesting contractors and landowners while creating a sustainable replacement for declining peat revenues.

4. Approved Supplier Network

   1. Goal: Establish a network of approved harvesting partners operating according to SmartMoss quality specifications.

5. Traceability System

   1. Full raw material traceability from harvesting site to substrate production

Production Risk

Can SmartMoss substrates be manufactured consistently, economically and at commercial scale?

The value of the technology depends on whether substrate recipes can be produced reliably, cost-effectively and repeatedly at commercial scale.

Types of production risks

1. Process Reliability
2. Product Consistency
3. Unit Economics

Steps needed for overcoming the risks

1. Pilot Line Demosntration

   1. Milestone: Continuous pilot production 

      1. Success criteria: 8 h continuous run with documented parameters

2. Recipe Reproducibility

   1. Milestone: Commercial recipe portfolio validated

      1. Success criteria: constant quality among all production patches and lines

3. Cost Model Validation

   1. Milestone: Production economics validated

      1. Success criteria: known and predictable cost structure

4. Technology Transfer Package

   1. Milestone: TLR6 package completed and documented

Commercial Adaptation Risk

Will commercial growers adopt SmartMoss substrates and achieve measurable benefits without changing existing cultivation practices?

Commercial success depends on demonstrating that SmartMoss substrates deliver superior growing performance while fitting seamlessly into existing production systems.

Types of commercial adaptation risks

1. Performance
2. Adoption
3. Economic Benefit

Overcoming the risks

1. Commercial pilot program

   1. Milestone: real world customer trials completed

      1. Success criteria: 

         1. minimum of 3 professional customers with different areas of cultivation
         2. minimum of 3 consumer segments reached

2. Performance validation

   1. Milestone: Agronomic performance validated

      1. Success criteria:

         1. peer-reviewed scientific data
         2.  documented increase in yield

3. No-Change adoption validation

   1. Milestone: existing cultivation systems validated

      1. Success criteria:

         1. zero additional investments
         2. no change in watering infra
         3. no change in other equipment

4. Recipe Portfolio Validation

   1. Milestone: Commercial recipe portfolio completed

      1. Success criteria:

         1. products tailored for known segments

Risks vs Outcome