Leko Labs closed a $21 million Series A round of funding led by 2150.

Leko Labs, a Luxembourg-based wood-based construction materials startup, announced completing a $21 million series A capital funding round.

The money was raised from investors led by urban sustainability-focused fund 2150 with participation from Microsoft’s Climate Innovation Fund, Tencent, AMAVI, Rise PropTech Fund, Extantia and Freigeist.

The proceeds will be used will to accelerate roll-out of Leko Labs's advanced software and robotics construction solution to supply finished walls across Europe. At the same time, the company announced that former Lilium CCO Dr. Remo Gerber will join as CEO, with current CEO and founder Francois Cordier reverting to the CTO role with the focus of furthering its groundbreaking sustainable building materials, robotics and software development.

Leko Labs, founded in 2014 by Francois Cordier, developed a novel wall and floor system based entirely on wood and wood fibre, which is capable of replacing up 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.

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.