Sisaltech has successfully raised £800,000 in a funding round led by TRICAPITAL Angels, with backing from Scottish Enterprise.

The Midlothian-based company uses natural and recycled fibres to create innovative low-carbon insulation products that are highly breathable and well-suited to retro-fitting traditional stone buildings.

Its SISALWOOL products can be used in a wide variety of applications including pitched roofs, wall, and under suspended timber floors.

SISALWOOL was recently recognised as best product at the VIBES Awards, and is already listed by industry giants such as B&Q. The fresh investment will allow Sisaltech to scale its operations to meet growing demand.

Moray Martin, CEO of TRICAPITAL Angels, said: “Sisaltech is a forward-thinking, innovative and impactful business, exactly the type of company we are geared up to accelerate as they scale and transform the construction sector with products that perform exceptionally while tackling the climate emergency.

“With growing demand for eco-friendly building solutions amid tightening environmental regulations, Sisaltech is positioned to become a key player in the green building revolution.

“The new funding will support Sisaltech’s plans to increase manufacturing capacity and explore new market opportunities. Its growth will also deliver a boost to supply chains, including Scottish sheep wool and help develop the circular economy.”

John Ferguson, founder and CEO of Sisaltech Ltd, said: “This crucial support from TRICAPITAL and Scottish Enterprise will allow us to scale up and to lead the transition towards more environmentally sustainable building practices across the UK and beyond.”

Kerry Sharp, director of entrepreneurship and investment at Scottish Enterprise, said: “Our investment in Sisaltech builds on grant funding previously provided to the company and highlights our commitment to supporting the growth of ambitious Scottish businesses at every stage of their scaling journeys.”

The Sisaltech deal is TRICAPITAL’s fourth investment in as many months, with its network of angel investors leading nearly £3 million of funding into some of Scotland’s most innovative young companies.

This includes a seven-figure investment in Aberdeen-based HonuWorx, which aims to reduce costs and emissions for offshore repair and inspection through its fleet of autonomous, all-electric submarines.

Energy-sector innovator H2CHP also secured £600,000 to advance its revolutionary free-piston engine technology, capable of generating power without emitting carbon.

Meanwhile, a £300,000 investment in Skye-based Kaly Group will help the seaweed farming business expand its operations and establish a sustainable seaweed supply chain along Scotland’s west coast.