Circular11 secures major funding to turn plastic waste into critical construction materials
Dorset based Circular11 has secured £2.4 million in equity funding to bring its state-of-the-art manufacturing technology to market, and ramp-up its production of waste-based materials to recycle an estimated 10,000 tonnes of low-quality plastic over the next 2 years.
Most plastics go to waste because recyclers cannot separate them back to their original levels of purity, making them too unreliable to be used by normal manufacturing systems. Circular11’s proprietary technology allows their manufacturing lines to adapt to this variation, making plastics usable in the company’s production of a composite lumber, an alternative to timber.
Demand for this kind of sustainable outdoor material is being driven by the growth of timber demand, which is set to outstrip slow-growing supply threefold over the next few decades. This is compounded by the banning of traditional timber preservatives, resulting in shorter timber lifespans and a need for alternative materials. Lumber composites offer longer lifespans and lower maintenance costs, while diverting plastic waste from incineration and reducing the carbon profile of construction projects.
This deal marks a milestone in the development of the circular economy within British manufacturing. The investment has been led by Vectr7 Investment Partners, a specialist climate impact investor, with The FSE Group, who invested £630,000 from the British Business Bank’s South West Investment Fund, acting as co-lead. The round also included The FSE Investor Network, Oxford Innovation Network, and other private investors, alongside an InnovateUK grant award.
Benjamin Gibbons, CEO of Circular 11, said: “We believe that every tonne of plastic that gets incinerated is a missed opportunity to deliver low-carbon materials to a construction sector that desperately needs affordable and long-lasting assets. The backing of Vectr7, the South West Investment Fund, FSE and other investors is an important step; it gives us the resources to scale manufacturing, whilst continuing to develop the systems behind our materials and respond to growing pressure on industry to find better uses for plastic waste.
Dominic Wilson, Founder & Managing Partner at Vectr7 Investment Partners, commented: “We are very pleased to lead this investment to support Ben and Connor on the next step of their mission. The supply side constraints within the timber markets means the construction and manufacturing industries need sustainable alternatives. Circular 11 is addressing that critical need head on and we are excited about the next stage of their growth.”
Matt Browning, Investment Manager at The FSE Group added: “Circular 11 is addressing a clear challenge in the construction and materials market. The team has developed a compelling approach to turning difficult-to-recycle plastic into useful, long-life products, and this investment will help the business scale its operations and build on early commercial traction.”
Lizzy Upton, Senior Investment Manager at the British Business Bank said: "Having supported Circular11 through the Bank's Start Up Loans programme in 2024, we're delighted to see the business scale at pace with support from our South West Investment Fund. This investment is a strong endorsement of the team’s vision to turn problematic plastic waste into valuable, low-carbon construction materials."
The purpose of the South West Investment Fund is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the South West. It offers a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. The fund is increasing the supply and diversity of early-stage finance for South West smaller businesses, providing funds to firms that might otherwise not receive investment and helping to break down barriers in access to finance.
