Highway Data Systems raises £1.25m seed to automate roadside testing with sensors
This article covers Highway Data Systems, a construction startup, which has raised £1.25m in a seed funding round to accelerate deployment of its automated roadside quality-assurance technology and expand internationally. The funding will support product development, new contracts and US expansion, affecting contractors and the road construction sector by automating safety-critical asphalt and roadside testing.
Glasgow-based Highway Data Systems, a construction startup, has raised £1.25m in a seed funding round to accelerate deployment of its automated roadside quality-assurance technology and expand internationally. The capital will support new contracts, product development and growing US operations — a timely push as the construction sector digitises safety-critical testing.
Why it matters
Road construction and asphalt testing remain labour-intensive and often expose workers to roadside hazards. Automating those checks can reduce time on site, improve data accuracy and cut costs for contractors. Highway Data Systems already supplies major industry names such as Eurovia, Holcim and Tarmac, signalling early commercial traction with customers responsible for large infrastructure projects across the UK and beyond.
The funding also represents a test case for regional innovation programmes: HDS is the first company to receive backing through the Greater Glasgow Innovation Cluster, a strand of the Nations & Regions Investment Funds aimed at linking investors and local innovators.
Inside the product
HDS combines proprietary hardware, embedded electronics and software to automate traditional quality-assurance tests used in road construction and asphalt production. Its systems operate both roadside and in plant environments, shifting processes that were manual, labour-intensive and safety critical into instrumented, repeatable workflows that produce engineering-grade data.
That emphasis on measurement and repeatability is central to HDS’s pitch to contractors: consistent, auditable test results are useful for contract compliance, liability management and process optimisation.
Who are the investors?
The investment came from the Investment Fund for Scotland (IFS), managed by Maven Capital Partners and delivered via the British Business Bank’s Nations & Regions Investment Funds. The Greater Glasgow Innovation Cluster is the mechanism used to make this first deployment, part of a wider strengthening of the funds totalling £100 million aimed at regional investment.
In the announcement, Sarah Newbould, senior investment manager at Nations & Regions Investment Funds, the British Business Bank, said:
The Investment Fund for Scotland was established to support ambitious, high growth Scottish businesses. HDS exemplifies this, combining innovation with clear international growth potential.
As the first investment delivered through the Greater Glasgow Innovation Cluster, this funding demonstrates the Funds role in strengthening connections between investors and innovative businesses in the region.
In the announcement, Rob Stevenson, investment manager at Maven, said:
HDS has evidenced strong growth to date, developing a highly rated suite of products for customers across both roadside and plant, in both the UK and US.
Joe and his team have significant experience and knowledge within the sector, and with the continuous market shift to automated processes there is a strong growth opportunity.
We’re delighted to be deploying the Greater Glasgow Innovation Cluster initiative for the British Business Bank in Scotland, and look forward to supporting more companies across the country.
If you're researching potential backers in this space:
- Explore our list of construction venture capital firms in the UK
- Browse our directory of construction angel investors in the UK
Founder perspective
In the announcement, Joe Charlesworth, managing director of HDS, said:
We are very grateful to the British Business Bank and Maven for the investment in our company at an exciting point in our growth journey.
Data is only as good as its accuracy, and as a technology partner for major infrastructure projects we strive for engineering-grade precision. This backing will allow us to invest in our product development as we enhance our automated digital solutions for both the UK and international markets.
Charlesworth’s comments underline the company’s focus on exporting its measurement systems and on product refinements that support larger, international contracts.
The bigger picture
The deal sits at the intersection of two trends: regional funds attempting to channel capital into local innovation clusters, and the construction industry’s gradual pivot to automation and data-driven quality control. For HDS, the immediate opportunity is to convert existing contractor relationships into recurring deployments while scaling operations in the US.
More broadly, the investment highlights how targeted regional programmes — backed by public and private managers — are being used to bridge early commercial validation and growth capital for engineering-focused startups across the UK and Europe.
They've invested in Highway Data Systems
Get to know these construction investors
Click here for a full list of 7,589+ startup investors in the UK