Finnish startup bags 29M to decarbonise this niche building material
From bricklaying robots to zero-carbon cement, startups are shaking up construction in a high-tech bid to build better, greener structures.One of these early-stage ventures is Finland-based Aisti. Founded in 2019, the company has come up with a way to make acoustic tiles that are carbon-negative. Acoustic panels are a common construction material used to reduce noise and improve sound quality in buildings.Aisti has raised 29mn in a mix of VC and debt funding to build its first industrial-scale factory in Kitee, a small town about four hours northeastof Helsinki.The startup plans to bring the tiles to market in the second half of 2026 and has already signed multiple offtake agreements with customers in the construction industry, it said.Watch Back NowBuildings alone are responsible for almost 40% of global emissions, so decarbonising construction is a critical piece of the sustainability puzzle.Most acoustic tiles today are made from fibreglass, mineral wool or polyurethane, a type of plastic. Aistis panels, however, are made from wood fibres, which are sourced from sustainable timber or waste paper.Our production process is very resource-effective, founder and CEO Mikko Paananen told TNW. If every single acoustic tile in the world were manufactured with our technology, the need for wood fibres would be 700,000 tons annually which represents only the production of one medium-sized pulp mill.Aisti mixes the wood fibres with water and foaming chemicals similar to what is used in toothpaste. This forms a foam that is then moulded into squares and dried to make the finished tile.The wood fibres stick together with natural hydrogen bonds, so no additional binders are needed making the material very light, explained Paananen, adding that the company will be able to make the panels at a similar pricepoint to conventional mineral wool tiles.Aistis patented material can also be adapted for use as thermal insulation, packaging materials, and composites.We aim to first serve the Nordic market, meeting the growing demand for more natural building solutions in the region, said Paananen. Were thrilled to have strong support from investors and other partners as we embark on this next growth phase and bring our product to market.Technology for the built environment is set to attract $24bn in VC investment in 2024 as the sector outperforms key tech verticals like climate tech and fintech, according to the State of Built World Tech report released this week.Aistis funding round attracted notable early-stage investors including Voima Ventures, Maki.vc, and Valve Ventures. Part of the funding includes non-equity financing, including a 5mn loan from Norion Bank, a 7mn public grant from the South Savo ELY Centre and a 8.5mn capital loan from the Finnish Climate Fund.We are proud to support Aisti in its mission to revolutionize acoustic solutions with sustainable, high-performance materials, said Pirkka Palomki, partner at Maki.vc, a Helsinki-based deep tech fund. This funding milestone marks not only the start of an exciting growth phase but also a transformative step for the construction industry as a whole. Story by Sin Geschwindt Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecos (show all) Sin is a climate and energy reporter at TNW. From nuclear fusion to escooters, he covers the length and breadth of Europe's clean tech ecosystem. He's happiest sourcing a scoop, investigating the impact of emerging technologies, and even putting them to the test. Sin has five years journalism experience and holds a dual degree in media and environmental science from the University of Cape Town, South Africa. Get the TNW newsletterGet the most important tech news in your inbox each week.