Cocoon Carbon, a company developing low-carbon cement substitutes, has raised €13 million in a Series A funding round co-led by 2150 and Brick & Mortar Ventures, with participation from TVC and continued support from Wireframe Ventures, Celsius Industries, Gigascale Capital, and SOSV.
The company is focused on scaling supplementary cementitious materials (SCMs) derived from industrial byproducts, addressing both cost pressures and emissions reduction in the construction sector.
What The Company Does
Founded in 2023 by Eliot Brooks, Will Knapp, and Freddie Scott, Cocoon Carbon produces alternative cement materials using steel industry byproducts, specifically electric arc furnace (EAF) slag. These materials are designed to replace traditional cement components while maintaining comparable performance in concrete applications.
The company’s process converts molten slag into usable SCMs through a modular system that integrates directly into existing steel mill operations. By rapidly cooling slag at a significantly faster rate than conventional methods, Cocoon produces a material suitable for large-scale construction use without requiring major additional infrastructure.
This approach allows concrete producers to reduce the carbon intensity of their products while maintaining cost competitiveness. The company reports that its materials can reduce the embodied carbon of concrete by up to 40 percent, without introducing a pricing premium often associated with low-carbon alternatives.
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Market Context / Industry Background
The construction sector is under increasing pressure to reduce emissions, with cement production representing a significant share of global CO2 output. At the same time, demand for infrastructure continues to grow, driven by urbanisation, data center expansion, and long-term development needs.
Supplementary cementitious materials play a critical role in reducing emissions, but traditional sources, such as coal combustion and blast furnace byproducts, are declining as those industries are phased out in Europe and the United States. This has created a supply imbalance, with demand for SCMs growing at an estimated 6 to 7 percent annually.
As supply tightens, prices have increased in several markets, highlighting the need for alternative sources. Electric arc furnace steelmaking, which relies on recycled materials and electricity rather than coal, generates large volumes of slag that remain underutilised. This creates an opportunity to expand SCM supply through new processing technologies.
Founder / Investor Commentary
CEO and co-founder Eliot Brooks described the current SCM market as facing a structural supply gap at a time of increasing infrastructure demand. He emphasized that expanding access to locally available, cost-effective materials is essential to stabilizing prices and reducing emissions in concrete production.
Brooks noted that Cocoon’s approach is designed to integrate seamlessly into existing industrial systems, enabling producers to adopt the technology without significant operational disruption.
Jacob Bro, partner and co-founder at 2150, highlighted the scale of the opportunity, pointing out that concrete underpins global infrastructure and remains one of the largest sources of industrial emissions. He indicated that Cocoon’s ability to deliver a cost-competitive, drop-in replacement positions it as a practical solution within the broader decarbonisation landscape.
Growth Plans / Use Of Funds
The Series A funding will be used to deploy Cocoon Carbon’s first commercial-scale demonstration facility in the United States. This facility is intended to validate the technology at industrial scale and establish a foundation for broader rollout across steel plants in both the U.S. and Europe.
The company has already conducted pilot projects at a major steel mill and completed third-party validation of its materials in concrete applications. In parallel, Cocoon has expanded its research and testing capabilities in London.
To support its next phase of growth, the company plans to scale its team, including hiring engineers, materials scientists, and commercial staff in the UK, as well as operational and technical personnel in the U.S.
About Cocoon Carbon
Cocoon Carbon is a materials technology company developing low-carbon alternatives to traditional cement. Founded in 2023 and headquartered in London, the company produces supplementary cementitious materials from electric arc furnace slag. Its mission is to reduce the environmental impact of concrete production while providing cost-effective and scalable solutions for the construction industry.
