Leko Labs, a Luxembourg-based cleantech specializing in wood-based "carbon negative" construction, raised $21 million in a Series A round in February 2022. The round was led by 2150, with participation from the Microsoft Climate Innovation Fund, Tencent, AMAVI Capital, Rise PropTech Fund, Extantia and Freigeist. The company, led by Remo Gerber (CEO) and François Cordier (CTO and founder), aims to roll out its software and robotics platform for manufacturing optimized wood panels across Europe.
Buildings: the world's largest sectoral emitter
Construction and building operations account for roughly 37% of global CO2 emissions, according to the International Energy Agency (IEA), with around 9% attributable to materials production alone (concrete, steel). Cement on its own is responsible for 7 to 8% of global emissions, according to the World Resources Institute. Decarbonizing construction therefore necessarily requires the large-scale substitution of carbon-intensive materials.
Wood stands out as the most credible short-term alternative. One cubic meter of wood used in construction stores around 1 tonne of CO2, while concrete generates equivalent emissions. Timber construction is growing fast in Europe: according to a BCG study, wood's share in European residential construction rose from 5 % in 2015 to around 12 % in 2022, with targets of 30 % by 2030 in several Nordic countries.
The LekoElements technology
Leko Labs has developed a platform called LekoElements that combines parametric design software, robotic manufacturing, and local timber to produce optimized structural panels. The process uses around 30 % less wood than conventional CLT (Cross Laminated Timber) construction, thanks to an internal lattice that minimizes weight while preserving structural properties. This optimization draws inspiration from natural structures (bone, bamboo) and is only made possible by robotic fabrication.
LekoElements panels also solve two long-standing limitations of timber construction: moisture management and acoustic insulation. The software platform calculates and optimizes thermal, acoustic, and structural properties, while the algorithms adapt the design to the constraints of each project (loads, openings, local building codes).
A climate-focused investor syndicate
- 2150: a European VC fund exclusively dedicated to decarbonizing cities and buildings, with over €700 million under management.
- Microsoft Climate Innovation Fund: a $1 billion corporate fund launched in 2020.
- Tencent: a Chinese tech giant that has multiplied its climate investments since 2021.
- AMAVI Capital: a proptech fund based in the United States and France.
- Extantia: a German climate tech fund.
- Freigeist: a German early-stage fund founded by Frank Thelen.
The presence of Microsoft Climate Innovation Fund and Tencent in the capital signals a strategic reading of the market: tech giants are positioning themselves in industrial decarbonization technologies, taking minority, long-term stakes as a way to diversify against climate risks.
Competitors and benchmarks
The industrialized timber construction market includes several established European players. Kingspan, Stora Enso and Binderholz dominate the classic CLT segment. In the niche of automated, optimized manufacturing, Leko Labs competes with startups such as Dasta (Germany), Modulous (UK) and Mighty Buildings (US, although it uses composite materials rather than wood). In France, Mathis and Arbonis are the historical references in industrial timber construction.
Leko Labs' competitive advantage rests on the combination of software + robotics + material optimization, which should ultimately make its unit economics competitive with concrete. The challenge is industrial scale-up: moving from a pilot plant in Luxembourg to several European sites requires significant capital.
Planned use of the $21M
The company announced that it will use the round to expand its solution across Europe, with a focus on Germany, the Nordic countries and the United Kingdom. Concretely, this involves opening additional production sites, hiring local sales teams and signing partnerships with regional developers and builders. The business model combines the sale of prefabricated panels with licensing the software to industrial partners who run their own production lines.
The European timber construction market
The European Union has made timber construction an explicit pillar of its New European Bauhaus strategy. Sweden, Finland and Austria lead the way among adopting countries, with more than 25% of new homes built in wood. France is progressing more slowly (around 6-8% of residential construction according to FCBA), but RE2020 targets and pressure on the carbon footprints of real estate projects are accelerating the transition.
The French timber industry has real strengths (extensive forests, artisanal know-how) but also structural barriers (fragmentation of players, limited industrial capacity). The arrival of players like Leko Labs, with a scalable industrial approach, could catalyze the modernization of the sector.
What this means for the French ecosystem
Leko Labs' bet fits into the broader European momentum around industrial cleantech. For French proptech founders, the case shows that raising significant Series A amounts is possible by combining deeptech (optimization algorithms, robotics) with measurable impact. Climate-focused funds like 2150 are becoming must-have partners in these verticals.
For growth operators in proptech, the challenge is to support these industrial players in structuring their B2B go-to-market toward developers and local authorities, with long sales cycles (12 to 24 months) and decisions that often involve multiple stakeholders. Our AI expertise helps optimize the management of these complex pipelines through automation and lead scoring.
FAQ
How much did Leko Labs raise in its Series A?
Leko Labs raised 21 million dollars in Series A funding in February 2022. The round was led by 2150 with Microsoft Climate Innovation Fund, Tencent, AMAVI, Rise PropTech Fund, Extantia and Freigeist.
What does Leko Labs do?
Leko Labs develops LekoElements, a software and robotics platform that produces optimized wood panels for construction, using about 30% less material than conventional CLT construction.
Who leads Leko Labs?
Leko Labs is led by Remo Gerber (CEO) and François Cordier (CTO and founder). The company is based in Luxembourg.
What are Leko Labs' priority markets?
Expansion targets Europe, with a focus on Germany, the Nordic countries and the United Kingdom. France and Benelux are the company's home markets.
Why use wood to decarbonise construction?
One cubic metre of wood used in construction stores around one tonne of CO2, while concrete is responsible for 7 to 8% of global emissions according to the World Resources Institute. Timber construction is the most credible short-term alternative.