The European Investment Fund (EIF) has signed a SEK 212 million participation in the “NVC Fund 1 AB”, Norrsken for short, an impact investing fund focusing on impact-driven enterprises using digital technologies to address societal challenges. The EIF participation in the Fund was made possible under the European Fund for Strategic Investments (EFSI) of the Investment Plan for Europe and InnovFin Equity.
Launched in December last year, Norrsken has also received backing from Nordea, SEB, Ramsbury Invest (H&M Family office), Saminvest as well as a number of Swedish tech unicorn founders making it the largest early stage impact tech investor in Europe. With the EIF’s participation the Fund reaches €91 million, out of a €100 million target size. The Fund team, which has a joint track record since 2017, has extensive experience in impact financing and supporting start-ups.
European Commission Executive Vice-President Valdis Dombrovskis said: “The Norrsken fund is providing venture capital to early-stage tech companies working on some of the most pressing issues we face, such as climate, poverty, education and health. Europe needs to up its game when it comes to the availability of venture capital to start-ups, so this investment in Norrsken by the EIF has my full support.”
“We are delighted to welcome the new investors on board. We think that our ability to attract institutional investors of this calibre, especially in the midst of Covid crisis, is a true testament that impact investing is no longer a niche asset class and will grow rapidly over the coming years” stated Niklas Adalberth, General Partner of Norrsken VC, Founder of Norrsken Foundation.
The Fund will invest in early stage tech start-ups that aim to provide solutions for the world’s greatest challenges in areas such as climate, health, education and poverty, while also building profitable businesses. The Fund is associated with the Norrsken Foundation, which operates a co-working space for tech impact businesses in Stockholm.
Alain Godard, Chief Executive of the EIF, added: “Operations like this one make it clear that impact investing is on the rise. The investment class supported by these funds will play an important role in the green recovery from the ongoing crisis, making it all the more important for Europe to support it.”