Scottish firm behind ‘green’ building bricks secures £900k growth backing

A Scottish sustainable construction specialist has secured almost £900,000 in fresh backing as part of an ongoing funding round.

The investment into Edinburgh-based Kenoteq has been led by Kelvin Capital alongside the Scottish Enterprise Co-Investment Fund and several existing investors who have chosen to increase their backing of the business.

The investment round remains open as the company continues discussions with prospective investors. Kenoteq is targeting a total raise of £2 million.

Kenoteq's flagship product is called the K-Briq.

The first tranche of funding will support the next phase of the firm’s commercial growth, increasing production capacity of its flagship product, the K-Briq, while accelerating delivery across a growing pipeline of projects in the healthcare, hospitality and commercial sectors.

The K-Briq is manufactured using almost 100 per cent recycled construction and demolition waste, providing the construction industry with an alternative to conventional masonry products.

Among the schemes currently progressing is a major NHS development in Wales, where the product has been selected as part of one of the health service’s most sustainable hospital projects. The Scots firm is also supplying landmark theatre and restaurant projects in London.

Chief executive Andrew Holt said: “This investment is another significant milestone for Kenoteq and reflects the confidence our investors have in both our technology and our commercial strategy.

“We have built strong momentum over the past year and are now seeing that translate into an increasingly exciting pipeline of commercial projects across multiple sectors. Securing work on major healthcare, hospitality and commercial developments demonstrates the confidence that clients are placing in our products and our team.”

He added: “This investment enables us to build on that momentum by increasing production, supporting further commercial growth and continuing to develop innovative products that help the construction industry embrace more circular building practices.

“The investment round remains open and we continue to welcome conversations with investors who share our ambition for the future of the business.”

Kelvin Capital director John McNicol said: “Kenoteq is exactly the kind of business Kelvin Capital likes to back: proven technology, a clear commercial strategy, and a team turning innovation into real-world impact.

“It’s exciting to see the K-Briq specified on major healthcare and hospitality projects and we’re delighted to lead this investment alongside the Scottish Enterprise Co-Investment Fund and Kenoteq’s existing backers. We look forward to supporting Andrew and the team as they scale up and deliver on their pipeline.”

Kelvin Capital is a private investment syndicate with more than 300 angel investors across the UK and a diverse portfolio of 22 investee companies valued collectively at more than £250m.

Last month, The Scotsman reported on a Stirling-based developer of modular defence shelters that had secured a £940,000 funding boost as it looked to expand across key European markets.

The equity investment into Quickblock was led by Equity Gap, the University of Strathclyde and Scottish Enterprise, with additional grant funding provided by both Scottish Enterprise and Innovate UK specifically for research and development (R&D) into rapid deployment shelter systems. The company is behind a modular building system manufactured from 100 per cent recycled polypropylene.