Fashion tech startup ZERØTEC raises £642k led by Bethnal Green Ventures with SFC Capital
At a glance
This article covers the pre-seed round on 1 October 2025 for ZERØTEC, a London-based greentech fashion tech start-up using AI to optimise pattern design and cutting processes, founded by Nicholas Betts. It raised £642k in a round led by Bethnal Green Ventures, with SFC Capital also participating.
What does ZERØTEC do?
ZERØTEC is a fashion technology platform that uses AI to optimise textile pattern design and cutting. It reduces fabric waste and improves material efficiency during garment production by generating optimised cutting layouts.
Why is ZERØTEC useful?
Problem
People in the fashion industry face huge textile waste before garments reach shelves, costing the sector over $300 billion annually. This waste happens during pattern design and cutting, creating unnecessary material loss.
Solution
ZERØTEC explains that it uses AI to optimise pattern design and cutting, reducing fabric waste by up to 15%. The platform helps brands cut costs and measure the material impact of their clothing production.
How much did ZERØTEC raise?
ZERØTEC has raised £642k in a pre-seed round led by Bethnal Green Ventures, alongside SFC Capital. This makes it the 5th largest funding round in October 2025 (5 recorded). It ranks 423rd of the year (476 recorded) in the Startupmag database, as of 1 October 2025.
For details on how Startupmag compiles its rankings, view our Methodology.
Who invested in ZERØTEC?
The key investors backing ZERØTEC are listed below.
- Bethnal Green Ventures: A UK early-stage venture capital firm that invests in tech startups with social and environmental impact.
- SFC Capital: A UK investor providing early-stage equity funding to startups across a range of sectors.
- SCE Freiraum Ventures: A venture firm that invests in early-stage startups.
- Cranfield University Seed Fund: A university-backed seed fund that invests in early-stage technology and university spinout companies.
- Benjamin Manwaring: An angel investor with a background in startup investing.
In the funding announcement, Paul Miller OBE from Bethnal Green Ventures said:
What we love about ZERØTEC is that it turns the problem of waste in the fashion industry on its head. By designing out waste from the outset rather than dealing with it at the end of the process, we think Nicholas and the team are building something revolutionary.
If you're researching potential backers in this space:
- Explore our list of greentech venture capital firms in the UK
- Browse our directory of greentech angel investors in the UK
Who founded ZERØTEC?
Nicholas Betts is the founder of ZERØTEC.
In the funding announcement, Nicholas Betts explained:
We’re on a mission to solve one of fashion’s most critical problems with patented AI solutions that deliver real material benefits. Our platform helps brands embrace sustainability, cut costs, and finally bring transparency to the true impact of our clothes.
Where is ZERØTEC based?
ZERØTEC is based in London, UK.
What sector is ZERØTEC in?
ZERØTEC operates in the Greentech sector. The sector develops technologies that reduce environmental harm and resource use. In simple terms, it helps make products and processes kinder to the planet and waste less.
Key trends and challenges in Greentech:
Material efficiency and circularity
Textile waste costs the industry over $300 billion each year, enough fabric to cover Austria.
AI and digital optimisation
AI-driven design and optimisation reduces waste and cuts costs, sometimes saving up to 15 per cent of material.
Scaling and supply chain constraints
Complex supply chains for batteries and sustainable fibres slow production scale-up and increase costs for greener products.
For a deeper look at innovation in this space, see the greentech startups in the UK.
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