Finnish startup receives 29 million euros to decarbonize this area of interest constructing materials

Out of Bricklayer robot To Carbon-free cementStartups are shaking up the construction industry to use high-tech to build better, more environmentally friendly structures.

One of these early companies is Aisti, based in Finland. Founded in 2019, the company has found a way to make acoustic tiles that are “carbon negative.” Acoustic panels are a common building material used to reduce noise and improve sound quality in buildings.

Aisti has raised €29 million in a mix of VC and debt funding to build its first industrial-scale factory in Kitee, a small town about four hours away northeast from Helsinki.

The startup plans to bring the tiles onto the market in the second half of 2026 and has already signed several purchase contracts with customers from the construction industry, it said.

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Buildings alone are responsible for almost 40% of global emissions, so decarbonizing construction is a crucial piece of the sustainability puzzle.

Most acoustic tiles today are made of fiberglass, mineral wool or polyurethane, a type of plastic. However, Aistis panels are made of wood fibers that come from sustainable wood or waste paper.

“Our production process is very resource-efficient,” founder and CEO Mikko Paananen told TNW. “If every single acoustic tile in the world were made using our technology, the demand for wood fiber would be 700,000 tons per year, which is equivalent to the production of just a medium-sized pulp mill.”

Aisti mixes the wood fibers with water and foaming chemicals similar to those used in toothpaste. This creates a foam which is then formed into squares and dried to create the finished tile.

“The wood fibers stick together through natural hydrogen bonds, so no additional binders are required, making the material very light,” Paananen explained, adding that the company can produce the panels at a similar price to traditional mineral wool tiles.

Aisti's patented material can also be adapted for use as thermal insulation, packaging materials and composite materials.

“We want to initially serve the Nordic market and thus meet the growing demand for more natural building solutions in the region,” said Paananen. “We are very pleased to have strong support from investors and other partners as we enter this next phase of growth and bring our product to market.”

Built environment technology is expected to attract $24 billion in VC investment in 2024 as the sector outperforms major tech verticals such as climate tech and fintech, the study found State of built world technology report published this week.

Aisti's funding round attracted notable early-stage investors including Voima Ventures, Maki.vc and Valve Ventures. Part of the financing includes non-equity financing, including a EUR 5 million loan from Norion Bank, a EUR 7 million public grant from South Savo ELY Center and an EUR 8.5 million equity loan. EUR 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 Palomäki, partner at Maki.vc, a Helsinki-based deep tech fund. “This financing milestone not only marks the beginning of an exciting phase of growth, but also a transformative step for the construction industry as a whole.”