Frontier IP Group PLC (AIM:FIPP) portfolio company Alusid has secured £500,000 in funding from Octopus Investments through the Octopus AIM VCT and Octopus AIM VCT 2 funds.
This investment forms a part of a broader funding round which raised a total of £1.13 million which values tile specialist Alusid at £9.5 million.
Proceeds from the fundraising will be used to support Alusid's expansion into new product ranges and territories.
Alusid is developing hard-wearing floor tiles, which are expected to launch commercially this year and is in discussions with potential distributors in Scandinavia and Northern Europe.
It is also exploring options for an initial public offering later in 2024.
Last year Alusid started to collaborate with Topps Tiles on a new range made from at least 91.3% recycled material.
Alusid’s sustainable products have been purchased by Starbucks EMEA coffee shops, H&M, Pret a Manger, the BBC, and the Stonehenge Visitor Centre.
Neil Crabb, chief executive of Frontier IP, commented: "The investment from Octopus represents important validation for Alusid, its capital-efficient business model, and the quality of its products made from a minimum of 91 per cent recycled material, among the highest levels in the industry if not the highest.
“The company is a leader in the industry globally and is set for a very bright future."
Alasdair Bremner, chief executive of Alusid, added: "We are delighted with the investment and support from Octopus and look forward to working with them going forwards.
“This is an important year for Alusid as we launch our first 98.5% recycled low-carbon floor tile, expand our geographical reach, and seek to become a public company."
"We are excited to support entrepreneur Alasdair Bremer and the team in scaling Alusid to establish sustainable tiles from recycled waste as the industry standard. We have been impressed with the progress the team has made and are looking forward to working together," stated Dominic Weller, Octopus Investments’ fund manager.
Frontier IP now holds a 35.4% equity stake in Alusid.