The cash injection will enable Project Etopia to accelerate its expansion plans
The Cambridge based firm specialises in modular homes that combine energy-efficient passive design, affordability, rapid construction, renewable energy generation and storage, as well as intelligent heating and cooling systems.
A panelised build system means the amount of time spent on site and during the construction phase is lowered significantly.
Project Etopia's first major development is a 47-unit residential scheme in Corby, Northamptonshire.
A spokesperson for Reuben Brothers, said: "Project Etopia has set out its stall in building elegantly-designed, high quality eco homes and is already demonstrating how its vision aims to make a big impact to address the UK's housing crisis.
"The company has enormous ambition to revolutionise the housing industry, and we are pleased to support an important pioneer in the sector.
"The day when offsite construction arrives as a mainstream method within house building is drawing ever closer and our investment will provide Etopia the resource needed to deliver on its goals as soon as possible."
Joseph Daniels, CEO of Project Etopia, added: "Reuben Brothers' significant investment in Project Etopia is a huge endorsement by an eminent investor of what we are doing and marks an enormous milestone in the company's history.
"There is no place for poor quality housing in the UK, and we are demonstrating that high-quality affordable housing can be built at great speed with a drastically smaller environmental footprint.
