HexSeed Technology, a pioneering carbon capture and utilisation startup, has announced the successful closure of an early-stage funding round exceeding £600,000. The company is developing a novel process to convert captured CO₂ into high-value diamond supermaterials aimed at solving critical energy waste issues. This significant investment was led by Carbon13 and included participation from the Net Zero Technology Centre and Vento Ventures, which also unlocks a previously awarded Innovate UK Partnership Grant.
Addressing the Data Centre Energy Challenge
The exponential growth of artificial intelligence is driving a massive surge in the energy consumption of data centres, which are projected to consume a significant share of UK grid capacity within a decade. A substantial amount of this power is inefficiently lost as heat during the power conversion process, a problem that intensifies as facilities scale up. The International Energy Agency forecasts this global electricity demand to reach 945 TWh by 2030, underscoring the urgent need for breakthrough efficiency technologies.
The Thermal Limitations of Modern Electronics
To manage this power demand, data centres are transitioning to Gallium Nitride (GaN) transistors, which convert power far more efficiently than the silicon devices they are replacing. Despite their advantages, these GaN components run extremely hot, and this thermal bottleneck is the primary barrier preventing them from reaching their full performance potential. This heat issue not only curtails efficiency but also impacts the reliability and lifespan of the electronic components, creating a persistent engineering challenge.
A Novel Diamond Coating Solution
HexSeed's innovative solution leverages the exceptional properties of diamond, which is the best-known thermal conductor capable of dissipating heat effectively. The company is developing a low-carbon, low-temperature microwave plasma process that grows diamond coatings directly onto finished GaN devices without damaging them. This breakthrough, developed in close collaboration with University of Bristol experts, allows heat to be pulled away from the active regions so the devices can run harder and last longer.
Strategic Investment for Market Entry
The infusion of over £600,000 will empower HexSeed to transition its technology from laboratory-scale demonstrations to real-world applications on working GaN devices. According to CEO Mark Tandy, this funding is crucial for validating the technology and progressing toward pilot customer engagements with key industry players. The company's initial go-to-market strategy is focused on data centre power conversion hardware, a sector where its thermal management solution can deliver immediate and substantial value.
The Team and Vision Behind the Innovation
HexSeed Technology was founded in late 2025 by a team with deep expertise across business and science, including CEO Mark Tandy, CTO Dr Leonardo Santoni, and COO Dr Michael Glerum. The company's close partnership with leading academics like Professor Paul May and Professor Martin Kuball at the University of Bristol provides a strong foundation for its research and development. This collaboration combines commercial acumen with cutting-edge scientific discovery to tackle a pressing global energy problem.
This strategic funding round provides HexSeed Technology with the critical momentum to advance its disruptive thermal management solution for the semiconductor industry. By enabling more efficient and durable electronics, the company's technology has the potential to significantly reduce the vast energy waste in data centres worldwide. As the digital economy continues to expand, HexSeed's innovation represents a vital contribution to building a more sustainable and energy-efficient technological future.