Circular11, a Dorset-based recycled construction materials startup, has secured £2.4 million in equity funding led by Vectr7 Investment Partners, with The FSE Group acting as co-lead investor, deploying £630,000 from the British Business Bank's South West Investment Fund. The round also included The FSE Investor Network, Oxford Innovation Network, and other private investors, alongside an InnovateUK grant award. The funds will be used to bring its manufacturing technology to market and scale production capacity.
Most plastics cannot be recycled back to their original levels of purity, making them too inconsistent for conventional manufacturing systems and resulting in incineration. Circular11's proprietary technology allows its manufacturing lines to adapt to this variation in plastic quality, enabling the business to use these otherwise unusable waste streams in the production of a composite lumber — an alternative to timber for use in fencing, furniture, and infrastructure applications. Composite lumber offers longer lifespans and lower maintenance costs than timber, while diverting plastic waste from incineration and reducing the carbon profile of construction projects.
Demand for sustainable outdoor construction materials is being driven by growth in timber demand, which is set to outstrip supply threefold over the next few decades. This pressure is compounded by the banning of traditional timber preservatives, which has resulted in shorter timber lifespans and increased demand for alternative materials.
Over the next two years, the investment is intended to support the recycling of an estimated 10,000 tonnes of low-quality plastic waste.
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.
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.
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.
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.
