Recycling innovator set to scale after funding boost

A cleantech manufacturer is set to scale production after securing multi-million-pound investment to transform hard-to-recycle plastic waste into construction materials.

Dorset-based Circular11 has raised £2.4 million in equity funding to bring its manufacturing technology to market and increase production of waste-based composite lumber.

The company’s technology is designed to process plastics that are often rejected by conventional recycling systems because they cannot be separated back to their original purity.

Circular11 uses the material to produce a timber alternative for outdoor construction, helping divert plastic waste from incineration while reducing maintenance costs and improving material lifespan.

Bosses say they expect to recycle around 10,000 tonnes of low-quality plastic over the next two years as production ramps up.

Demand for alternative outdoor materials is rising as timber demand grows and traditional timber preservatives face increasing restrictions, creating pressure for longer-lasting, lower-carbon substitutes.

Benjamin Gibbons, chief executivbe 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.”

The investment round was led by climate impact investor Vectr7 Investment Partners, with The FSE Group acting as co-lead.

FSE invested £630,000 from the British Business Bank’s South West Investment Fund.

The round also included backing from The FSE Investor Network, Oxford Innovation Network, private investors and an Innovate UK grant.

Dominic Wilson, founder and managing partner at Vectr7 Investment Partners, added: “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.”

The South West Investment Fund offers loans from £25,000 to £100,000, debt finance up to £2 million, and equity investment up to £5 million, helping smaller businesses access funding they might otherwise struggle to secure.

Lizzy Upton, senior investment manager at the British Business Bank, added: “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.”

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