Strong by Form raises $6.6M to build sustainable wood materials in Europe
What's the deal? Chile-based Strong by Form has raised $6.6 million in a Series A round led by US family office Boisei Investments. The startup turns low-value and cast-off wood of any species into lightweight, durable materials for construction and transportation. The round marks progress towards a Series A goal of $10 million to $15 million.
What's the endgame? Founded eight years ago, the company wants to prove wood can be designed and manufactured with the versatility of fibreglass. Its construction-grade product, “woodflow core”, delivers the same load-bearing capacity as reinforced concrete at a fraction of the weight and CO2 emissions, according to the company. It cuts concrete use by taking on a structure's horizontal loads.
Where's the money going? The funds will set up a pilot manufacturing plant in Spain. Building materials account for 11% of carbon emissions worldwide.
Why Europe? Europe is the highest-growth market for high-rise timber buildings, said co-founder Andres Mitnik. The EU is also an ideal market to prove commercial potential because the bloc has a single certification for wood-based building, versus the US, where certification happens state by state. Strong by Form is also working with European train operators on specialised products.
Who's backing it? Boisei's founder George Perry, a Penn State professor who made early bets on electric vehicles and solar in China, led the round. Other investors include TeampactDealroom has a profile for this one. Try Dealroom →, TernelDealroom has a profile for this one. Try Dealroom →, Axel Carbon CapitalDealroom has a profile for this one. Try Dealroom →, VX VenturesDealroom has a profile for this one. Try Dealroom →, and VinciDealroom has a profile for this one. Try Dealroom →, one of Europe's largest construction companies. Seed investor CMPCDealroom has a profile for this one. Try Dealroom → reupped.
The signal: “We want to build a platform where anyone can create their own products,” said Mitnik. With strategic backers spanning construction and rail, the round reflects growing appetite for lower-carbon alternatives to concrete as timber towers rise across Europe.
Read more: ImpactAlpha
Image credit: Strong by Form
