Construction startup Concretene raises £4.5m with PXN Ventures and British Business Bank
This article covers Concretene, a University of Manchester spin-out construction startup that has raised £4.5m in the first close of its series A funding round to scale up production of a locally produced Manchester graphene admixture for concrete. The funding will support multi-tonne manufacturing, larger industrial concrete trials and the rollout of a circular production process using wastewater biogas, targeting reductions in embodied carbon in the construction and water sectors without increasing cost.
Concretene, a University of Manchester spin-out construction startup, has raised £4.5m in the first close of its series A funding round to scale up a locally produced "Manchester graphene" that can be added to concrete mixes to cut embodied carbon without pushing up cost. The cash will fund multi-tonne manufacturing, larger concrete trials with industrial partners and rollout of a circular production process that uses wastewater biogas as a feedstock.
Why it matters
Concrete is responsible for a significant share of global industrial emissions, so practical carbon reductions that do not add cost are important for adoption across the water and construction sectors. Concretene’s approach — producing graphene from local wastewater biogas and using it as an admixture to reduce cement content — promises an emissions reduction route that aims to be cost-neutral at scale, avoiding a green premium that can block uptake.
The funding announcement coincided with a visit by business secretary Jonathan Reynolds to Concretene’s materials testing facility in Manchester’s Sister innovation district. The visit took place alongside a regional business meeting at Number 10 North.
Jonathan Reynolds, Business Secretary, said:
Small businesses and innovation go hand in hand in this country, with so many great companies like Concretene developing new ideas that set them apart from the competition and turn them into jobs. That’s why we’re helping unlock the potential of small businesses through removing £800 million worth of everyday paperwork and bureaucracy.
I congratulate Mike and his team for securing £2m in backing from the British Business Bank to back their future growth plans. It was an honour to meet them on Friday and try my hand at filling concrete moulds.
Inside the product
Concretene’s process turns local wastewater biogas supplied by United Utilities into what it calls Manchester graphene — a form of graphene used as a concrete admixture. In lab and earlier scaled trials, the admixture has allowed mixes to cut 10 to 20 percent of cement while maintaining strength, durability and standard batching and placement routines. The company says the material can be produced at multiple-tonne scale and is designed to be cost-neutral in commercial use.
Arup, the global engineering consultancy, is involved in technical development and industry adoption work, providing a link between the technology and construction-sector testing and certification. The next steps described by the company include industrial-scale manufacturing of the admixture and larger concrete trials with industrial partners to validate performance in real-world assets.
Who are the investors?
The first close of the series A is anchored by a £2m commitment from NPIF II – PXN Equity Finance, a vehicle managed by PXN Ventures as part of the Northern Powerhouse Investment Fund II and backed by the British Business Bank. Existing backers that have participated in Concretene’s fundraising to date include LocalGlobe and Molten Ventures; Arup has also been listed as a backer while supporting technical development.
Louise Chapman, NPIF II Fund Principal at PXN Ventures, said:
As well as being the birthplace of graphene, Manchester and the wider North West region has a long history of producing world-leading companies in the advanced manufacturing space.
As the fund manager for NPIF II in the North West, we’re proud to be backing Concretene as it embarks on its next growth chapter, moving ever closer to a range of commercially scalable products with various industrial applications to lower the construction industry’s carbon footprint.
Sue Barnard, senior investment manager at British Business Bank, said:
This investment from the Northern Powerhouse Investment Fund II will help Concretene scale up its manufacturing capabilities and bring its graphene-enhanced products closer to wider commercial use.
Supporting businesses that turn innovation into practical scalable solutions is key to strengthening the North’s advanced manufacturing sector, reflecting the wider ambitions of the UK’s Modern Industrial Strategy to support UK economic growth.
If you're researching potential backers in this space:
- Explore our list of construction venture capital firms in the UK
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Founder perspective
Mike Harrison, CEO of Concretene, framed the round as the transition from development to manufacturing.
Mike Harrison, CEO of Concretene, said:
This round takes us from the lab to multi-tonne manufacturing. Backing from the British Business Bank through PXN, more than matched by investors who have stood behind us for four years, means Manchester graphene can cut carbon from British construction without adding cost.
Harrison says the funds will be applied to build industrial-scale admixture production and to run scaled trials that prove the product in commercial settings.
The bigger picture
The deal ties together several trends in UK innovation: regional funds targeting advanced manufacturing, Manchester’s historical and research links to graphene, and growing demand for practical decarbonisation in construction. If Concretene’s claims on cement reduction and cost neutrality hold up in industrial trials, the product could offer a no-premium pathway for owners and contractors to cut embodied carbon in concrete assets.
The round also underlines the role of regional investment programmes and engineering partners in moving materials innovation from lab to site — a pattern likely to be relevant for other UK and European startups working on low-carbon building materials.
They've invested in Concretene
Get to know these construction investors
| Investors | Investment Focus | Startup Investments | Round Size | Connect |
|---|---|---|---|---|
 NPIF II (Northern Powerhouse Investment Fund II)( ) | ||||
 PXN Ventures( ) PXN Ventures is a UK-based venture capital firm focused on backing high-growth c... Manchester  | ||||
 LocalGlobe( ) LocalGlobe is a venture capital firm that partners with founders from pre-seed a... London | ||||
 Molten Ventures( ) Molten Ventures focuses on technology-driven companies across various sectors. T... London | ||||
 British Business Bank( ) The British Business Bank focuses on enhancing finance accessibility for smaller... Sheffield | ||||
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