Illustration: Gabriella Turrisi/Axios
Last updated August 22, 2023
Companies producing eco-friendly insulation from materials like wool, wood fiber and fungi have seen increased funding as demand grows for alternatives to the traditional fiberglass and spray foam.
Why it matters: Inflation Reduction Act legislation made some U.S. homeowners eligible to receive new tax credits and rebates for making their homes more energy efficient, and insulation helps reduce energy consumption.
Investments from the past 12 months include:
- Aeroseal, an Ohio-based climate tech company that is seeking to reduce energy leaks in buildings, raised $67 million in Series B funding. The round closed in July and was led by Breakthrough Energy Ventures and Climate Investment.
- CleanFiber, a Buffalo, New York-based manufacturer of cellulose-based insulation material, in June received $6.7 million in funding.
- TimberHP, a company manufacturing wood fiber insulation, raised an undisclosed amount of funding from Main Venture Fund in June.
- Mycocycle, a Chicago-based biotech company that uses fungi to turn waste into construction materials like insulation, raised $2.2 million in seed funding in May.
- Fiberwood, a Finnish manufacturer of eco-friendly insulation, raised a €3 million late seed round in February.
- Woamy, a Finnish startup that is developing a bio-based foam material to be used as insulation, closed a €1 million seed round in January.
- LuxWall, a Michigan-based developer of insulated windows, closed a $33 million Series A in January.
- AeroShield, a Boston-based manufacturer of decarbonizing insulating materials, closed a $4 million seed round in November 2022. The round was led by Massachusetts Clean Energy Center and MassVentures.
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