EIF and Invest-NL Back €68 Million 4impact Fund to Boost Sustainable Tech Startups in Europe

EIF and Invest-NL Back €68 Million 4impact Fund to Boost Sustainable Tech Startups in Europe

(IN BRIEF) The European Investment Fund (EIF) and Invest-NL have invested in Dutch venture capital firm 4impact capital’s second fund, which closed at €68 million. This fund will support around 25 early-stage digital companies across north-western Europe focused on societal and environmental impact, especially in climate tech. The EIF’s investment is backed by the EU’s InvestEU initiative, and since 2023, the fund has already invested in several impactful ventures, including companies advancing sustainable data centers and carbon removal.

(PRESS RELEASE) LUXEMBOURG/BRUSSELS/AMSTERDAM, 7-Nov-2024 — /EuropaWire/ — The European Investment Fund (EIF) and Invest-NL, the Dutch national promotional institution, have jointly invested in the second fund of Dutch venture capital firm 4impact capital, which closed at €68 million. The fund is designed to support early-stage digital companies in north-western Europe that are focused on creating positive societal and environmental impact, particularly in climate technology, health, and inclusion.

Backed by the European Commission’s InvestEU initiative, the EIF contributed €17.5 million, while Invest-NL invested €7.5 million, with both organizations playing a critical role in bringing the fund to its final close. The fund aims to invest in around 25 innovative software companies, with a focus on the Benelux, DACH, and Nordic regions, committing at least 20% of its capital to Dutch businesses.

Since its first close in 2023, 4impact’s Fund II has already supported six pioneering companies, including Coolgradient, which enhances energy and water efficiency in data centers; Deftpower, which aims to use EV batteries to improve grid stability; and Carbonfuture, a leading provider of high-quality carbon removal credits.

EIF Chief Executive Marjut Falkstedt emphasized the importance of supporting Europe’s innovative startups to help them grow and stay within the region, adding, “Funds like 4impact play a vital role in fostering a sustainable future for Europe.” Invest-NL’s Executive Board member, Jellie Banga, echoed this sentiment, highlighting the valuable partnership with the EIF through the Dutch Future Fund initiative.

4impact founding partner Pauline Wink expressed gratitude for the support from EIF, Invest-NL, and other investors, underscoring the fund’s mission to drive sustainability and growth among portfolio companies across Europe.

Background information:

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investment for EU policy priorities, such as the European Green Deal and the digital transition. InvestEU brings together under one roof the multitude of EU financial instruments previously available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Invest-NL is the National Financing and Development Institution of the Netherlands. As a leading impact investor, its mission is to provide financing to companies and innovations that currently do not have sufficient access to existing financing options. Invest-NL works together with various stakeholders, including entrepreneurs, other financiers and investors, and development specialists from both the public and private sector. Together with its partners, Invest-NL’s objective is to accelerate the major social transitions that the Netherlands is facing in order to contribute to a sustainable and innovative Netherlands. Invest-NL focuses on the transition to a sustainable and circular economy, promoting affordable and accessible healthcare and stimulating technological innovations.

4impact capital is a prominent early-stage impact investor in European digital startups. 4impact capital supports passionate and ambitious founders dedicated to advancing sustainability and creating measurable change, aligned with the Sustainable Development Goals (SDGs), particularly in the areas of Planet and People. Currently, 4impact capital is investing from its second fund with the goal to invest in the Seed/Series A phase of around 25 companies that capitalize on the massive opportunity at the intersection of digitization and sustainability in Europe, focusing on the Benelux, DACH, and Nordics regions.

Media Contacts:

EIB Group: Tim Smit | +352 691 28 64 23 | t.smit@eib.org

European Commission: Ignazio Cocchiere | +32 2 29 82261 | ignazio.cocchiere@ec.europa.eu

Invest-NL: Wander van der Kolk | +31 641 880 440 | wander.vanderkolk@invest-nl.nl

4impact capital: Ali Najafbagy | +31 631 341 468 | ali@4impact.vc

SOURCE: European Investment Fund