London-based Cocoon Carbon has secured $15 million in Series A financing to accelerate deployment of its technology aimed at addressing a growing shortage of low-carbon materials in the cement industry.
The funding round was led by 2150 and Brick & Mortar Ventures, with additional participation from The Venture Collective and existing backers including SOSV. The capital will support the development of the company’s first commercial demonstration facility in the United States, alongside team expansion across both the US and UK.
Cocoon is targeting a structural challenge facing the construction sector: the tightening supply of supplementary cementitious materials (SCMs), which are widely used to reduce the carbon intensity of concrete. Traditionally sourced from coal-fired power plants and blast furnaces, these materials are becoming scarcer as high-emitting industrial processes are phased out.
Turning industrial byproducts into scalable supply
To address this gap, Cocoon has developed a process that converts steel slag (a byproduct of electric arc furnace (EAF) steelmaking) into a cement substitute. By applying rapid cooling technology directly within existing steel production systems, the company aims to create a consistent and scalable supply of SCMs without requiring new, capital-intensive infrastructure.
The approach allows Cocoon to integrate into operational steel plants, capturing molten slag and processing it into a usable material with significantly lower emissions.
According to the company, the resulting product can reduce the embodied carbon of concrete by up to 40% while maintaining comparable performance to conventional alternatives.
Relevant: CURA And GFC Move To Commercialize Low-Carbon Cement
Unlike many emerging low-carbon materials, Cocoon’s solution is designed to be cost-competitive, avoiding the “green premium” that has often slowed adoption in the construction sector. Co-location with steel mills also reduces transportation costs and logistical complexity.
The company plans to use the new funding to validate its technology at commercial scale and support a broader rollout across more than 50 sites in North America and Europe by 2035.
With global infrastructure demand rising and supply constraints intensifying, Cocoon is positioning its model as a scalable pathway to stabilize material costs while lowering emissions in one of the world’s most carbon-intensive industries.
Read more: Cocoon Secures $5.4M For Innovative Approach To Steel And Concrete Production
