Norrsken VC secures €320M for Europe’s largest early-stage impact investment fund

Stockholm-based Norrsken VC, known for pioneering impact investing in Europe, has completed the final close of its second fund, securing €320 million. With this achievement, Norrsken VC Fund II becomes Europe’s largest early-stage impact investment fund, exceeding its initial goal of €250 million. The fund is dedicated to backing startups in sectors like climate tech, energy, biotech, AI, and health tech.

🗞️from the #Norrsken global ecosystem.@NorrskenVC, Europe's leading early stage impact investor has closed its second fund – oversubscribed at a whopping €320m. 🎉

Get the details here.https://t.co/NFnNmDTdAT pic.twitter.com/6qC8VrIOyq

— Norrsken East Africa (@norrskenEA) May 14, 2024

The focus on impact investing by Norrsken VC has garnered support from significant backers such as Folksam, AP1, KfW Capital, and BMW. Additionally, the fund receives backing from the European Investment Fund (EIF) through the InvestEU program. With a strategic focus on the Nordics, Germany, and the UK, the organization aims to fortify Europe’s startup ecosystem while tackling global challenges.

Aligned with the United Nations Sustainable Development Goals and the European Union’s Sustainable Financial Disclosures regulation, the fund’s selection process prioritizes investments that not only yield financial returns but also contribute positively to societal well-being. To date, investments have been made in over 50 startups, including notable successes like Northvolt, Einride, and 1KOMMA5°.

Dedicated leadership and vision

The leaders of Norrsken VC, including Niklas Adalberth, Tove Larsson, David Frykman, and Agate Freimane, are committed to supporting European entrepreneurs. Their aim is to empower startups with the potential for both financial success and positive social impact. Adalberth envisions each investment dollar as a net positive for people and the planet.

Freimane stressed the importance of sustainability for long-term business viability. She highlighted Norrsken VC’s Article 9 commitment, which forms the core investment thesis and attracts mission-driven founders.

The criteria used by Norrsken VC evaluate impact and sustainability across the investment process. This approach aligns with the EU’s SFDR regulation for Article 9 funds, ensuring that all investments have clear environmental or social objectives. Financial incentives are linked to achieving these impact targets.

Tove Larsson noted that, despite more funds joining the impact investing sector, it remains uncrowded. Less than 1% of global capital is dedicated to impact investments, underscoring the need for innovations for a more habitable world.

The Norrsken VC II fund, backed by nearly 50 limited partners, includes investors like AP1, Folksam, Saminvest, KfW Capital, and ISIF. Other backers are Credit Suisse, Investcorp-Tages, BMW, SEB-Stiftelsen, and Nordea, as well as unicorn founders and business figures like Azeem Azhar.

Norrsken VC Fund II marks a significant advance in early-stage impact investing in Europe. With a strong track record and visionary leadership, Norrsken VC aims to transform Europe’s startup landscape by supporting innovative, high-impact companies while driving meaningful social impact.