Leko Labs, the Luxembourg-based carbon negative construction company, today announces a $21 million Series A funding round.
The investment is led by urban sustainability-focused fund 2150 with participation from the Microsoft Climate Innovation Fund, Tencent, AMAVI, Rise PropTech Fund, Extantia and Freigeist. The total footprint of real estate developed, built or managed by Leko Labs’ new investor base totals approximately 500 million sq ft., which corresponds to an area the size of Manhattan.
Former Lilium CCO Dr. Remo Gerber also joins the company as CEO, with current CEO and founder Francois Cordier reverting to the CTO role with the focus of furthering its ground-breaking sustainable building materials, robotics and software development.
Leko Labs has developed a novel wall and floor system based entirely on wood and wood fibre, which is capable of replacing up to 75% of concrete and steel currently used in constructing a single building. In incorporating engineered wood and a fully circular manufacturing process, the system provides not only a sustainable approach to building but superior insulation properties with thinner walls, enabling up to 10% more floor space for a given building.
Reducing heating and cooling needs up to 87%
The technology can be used for buildings up to 100m tall and multiple developments are in completion to date in its Benelux home market, from homes to office buildings, data-centres and beyond.
The wall system is also highly insulating and can reduce heating and cooling needs of a building by up to 87% compared to today's standards, whilst potentially enabling buildings to remain carbon neutral over their entire lifetime.
Leko Labs' software platform calculates and optimises thermal, acoustic and static properties of the buildings, resolving moisture and noise problems typically associated with wooden buildings. Its algorithm optimises each building reducing wood usage vs traditional builds by up to 50%, making best use of the precious natural resource.
One of the most substantial capital raises in the sustainable building sector in Europe
By introducing an automotive style, robotics driven approach to the manufacturing of buildings, more can be delivered in much shorter time and at higher quality in comparison to traditional construction approaches. This benefits not only construction companies but also workers able to perform their duties in a safe and clean environment.
The Series A funding is one of the most substantial capital raises in the sustainable building sector in Europe, an area for a long time underfunded by venture capital investments.
This is especially important considering 39% of global greenhouse gas emissions come from housing with one third of that from raw materials production of concrete and steel and two thirds from heating and cooling our buildings. The new funding will enable Leko Labs to scale its advanced software and robotics construction solution throughout Europe including Germany, the Nordics and the UK, supplying finished walls from its factory in Luxembourg.
I’m delighted to welcome Remo as our new CEO and our new investors to help deliver our vision towards a more sustainable building sector.” Francois Cordier, CTO and Founder at Leko Labs
“Together we have a strong shot on the goal of reducing global greenhouse gas emissions in 2040 by 1% using the Leko Labs advanced building technology. His experience in scaling companies and capitalising them will be instrumental for the success of the company,” he adds.
I could not be more excited to join the journey with Francois and the entire Leko Labs team, it’s such an important and critical mission.” Dr. Remo Gerber, CEO at Leko Labs
“We are making a difference today, each of our walls saves several tons of CO2 here and now. By scaling up our solution with automotive robotics we will achieve global impact in the coming years,” he concludes.