Concretene, a University of Manchester spinout, has raised £4.5m in the first close of its Series A. The round includes £2m from the Northern Powerhouse Investment Fund II, managed by PXN Ventures, with follow-on money from existing backers LocalGlobe and Molten Ventures.
Concretene makes a graphene-based additive for concrete. In lab tests and earlier scaled trials, the company says the additive allowed 10–20% of the cement in standard mixes to be removed without affecting strength, durability, batching or placement. Cement is the main source of concrete's carbon footprint, so cutting the amount used cuts emissions from construction.
The company is now building a circular supply chain for its raw material. It plans to turn biogas from United Utilities' wastewater operations into carbon-negative graphene in Manchester, at a scale of several tonnes. It calls the product "Manchester graphene". The company says the additive is designed to cost the same as standard concrete at scale, so buyers do not pay a green premium.
The deal
The £4.5m is a first close, which means the Series A is still open and more investors could join before it is completed. Concretene has not disclosed a target size for the round or its valuation.
The biggest single cheque is the £2m from NPIF II – PXN Equity Finance, part of the British Business Bank's Northern Powerhouse Investment Fund II. The rest of the money disclosed so far comes from existing investors. LocalGlobe first backed Concretene in 2022, and Molten Ventures and engineering consultancy Arup followed. Arup also helps with technical development and with getting the industry to adopt the product.
On the reported figures, existing investors put in about £2.5m, more than the £2m of new public money. Chief executive Mike Harrison said the state-backed investment had been "more than matched by investors who have stood behind us for four years".
The money will pay for industrial-scale manufacturing of the additive, larger concrete trials with industrial partners and further work on the Manchester graphene programme. Harrison said the round "takes us from the lab to multi-tonne manufacturing".
Regional angle
The first close was announced during a visit by Business Secretary Jonathan Reynolds to Concretene's materials testing facility in Manchester's Sister innovation district. The visit coincided with government announcements on cutting costs and paperwork for SMEs ahead of the Budget.
The deal is the second Series A in a week from NPIF II's northern portfolio. PXN Ventures also led Leeds spinout adsilico's £10m round. PXN fund principal Louise Chapman said the North West had a "long history" of producing advanced manufacturing companies. Sue Barnard of the British Business Bank linked the investment to the government's Modern Industrial Strategy.
The next milestone is the final close of the Series A. After that, Concretene needs its scaled trials to show that the lab results on cement reduction hold up in commercial production.
Original source: BusinessCloud — https://businesscloud.co.uk/news/concretene-lands-4-5m-to-scale-manchester-graphene/
