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Neocrete secures $6.5m in seed venture funding led by Wavemaker Partners

AUCKLAND, NEW ZEALAND, 26 March 2024 – Neocrete, a New Zealand start-up focused on decarbonising concrete has secured US$4million (NZ$6.5m) in a Seed funding round led by Singapore-based venture capital firm Wavemaker Partners, with participation from New Zealand Green Investment Finance (NZGIF) and Icehouse Ventures.

“This funding will enable us to scale to meet initial global demand for Neocrete’s additive,” said Neocrete co-founder and CEO Zarina Bazoeva. “We plan to finish setting up our manufacturing facility in Auckland by mid-2024, for scale trials and pilot projects with concrete suppliers in Europe, the USA, Singapore, and India.”

“We’re also scaling up our R&D programme, which is on-track to produce cement-free, zero-carbon concrete by 2027,” Bazoeva added.

Neocrete’s additive activates materials, such as volcanic ash, so they can replace cement in concrete, without the carbon-intensive or costly manufacturing processes usually required. The manufacture of cement accounts for 8% of global greenhouse emissions.

“Neocrete is laying a promising foundation for sustainable construction with several projects already successfully launched across New Zealand.

“We are excited to partner with them to help transform the US$14 trillion global construction industry as they aim to deliver on carbon reduction without having to sacrifice on performance or price. Moreover, Neocrete is designed to scale rapidly by using a cost-efficient production process that can leverage existing infrastructure. This provides the company with a clear path to break through globally,” said Paul Santos, Managing Partner at Wavemaker Partners.”

Currently, Neocrete can reduce cement in concrete by 30-50%, with no loss in strength, while increasing its durability. Neocrete’s successful projects include the award-winning Bader Ventura medium density housing in Auckland, built by the New Zealand Ministry of Housing, Kāinga Ora.

“Being oversubscribed in a tough market validates the huge potential of Neocrete’s technology to decarbonise the global concrete industry,” said Matt Kennedy-Good, Co-founder and President. “We are very excited to be working with impact-focused global investors such as Wavemaker Partners as well as NZGIF and Icehouse Ventures locally.”

Neocrete is currently in the early stages of trial programmes with some of the largest cement and concrete suppliers in the world. The global industry is actively searching for ways to reduce the carbon footprint of concrete, without compromising quality or elevating cost.

Jason Patrick, Chief Investment Officer at NZGIF, said “If New Zealand is going to meet its CO2 emission reduction targets, we need to invest in the decarbonisation of every sector of our economy, including in alternative manufacturing and building methods. We are delighted to invest $1.2m in Neocrete to support its environmental and commercial aspirations.”

For more information about Neocrete, visit its official website.


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