Europe’s Largest Early-stage Impact Fund Significantly Oversubscribed

Norrsken VC, a leader in impact investing in Europe, has announced the final close of its second fund at €320 million, surpassing its original target of €250 million. This makes Norrsken VC Fund II the largest early-stage generalist impact fund in Europe. Backed by major institutional investors like Folksam, AP1, and the European Investment Fund (EIF), the fund aims to support entrepreneurs tackling global challenges.

The fund targets sectors such as climate tech, energy, biotech, AI, and health tech, focusing on companies with impactful core business models and potential for significant financial returns. To date, Norrsken VC has invested in over 50 startups, including unicorns Northvolt, Einride, and 1KOMMA5°.

Niklas Adalberth, General Partner and founder of Norrsken Foundation, emphasised their vision of making every dollar invested a net positive for people and the planet. Norrsken VC II aims to back founders who can build “impact unicorns,” companies positively affecting one billion lives.

The fund adheres to strict criteria based on UN Sustainable Development Goals (SDGs) and complies with the EU’s SFDR regulation as an Article 9 fund, ensuring all investments have a clear environmental or social impact objective.

Tove Larsson, another General Partner, highlighted the growing but still relatively uncrowded impact investment sector, noting the urgency of addressing the planet’s critical boundaries. The fund’s approach and philosophy are shared openly to encourage others to adopt similar models.

The fund’s LPs include nearly 50 backers, such as AP1, Folksam, Saminvest, KfW Capital and the Ireland Strategic Investment Fund (ISIF). Further financial backers include Credit Suisse (now merged with UBS Group), Investcorp-Tages, BMW, SEB-Stiftelsen and Nordea; all prominent financial institutions and businesses.

David Frykman, General Partner, expressed excitement about the oversubscribed fund, reinforcing their commitment to finding visionary founders across Europe. Ylva Wessén, CEO of Folksam, and Marjut Falkstedt, Chief Executive of EIF, echoed confidence in Norrsken VC’s potential to drive positive change through impactful entrepreneurship.

Agate Freimane, General Partner, pointed out the prominence of climate investments in European VC, with Norrsken VC’s dedication to sustainability being integral to their investment strategy. Norrsken VC operates independently from the Norrsken Foundation, founded by four experienced partners with diverse backgrounds in venture capital, private equity, investment banking, and startup operations. The predominantly Sweden-based team maintains a global investment perspective.

(Source: EU Startups)

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