EIF Backs €50 Million in Nine Realms Fund to Propel Sustainable Supply Chain Innovation Across Europe

EIF Backs €50 Million in Nine Realms Fund to Propel Sustainable Supply Chain Innovation Across Europe

(IN BRIEF) The European Investment Fund (EIF) has invested €50 million in Nine Realms’ new venture capital fund, Nine Realms Fund I K/S, which aims to raise €200 million to support early-stage companies focused on sustainable supply chain technology. The fund will invest in innovations that enhance supply chain efficiency and reduce carbon footprints, particularly in the EU, with a focus on Germany. This investment is part of the EIF’s broader mission to drive climate-friendly innovations and address gaps in European venture funding for logistics and supply chain sectors.

(PRESS RELEASE) LUXEMBOURG, 16-Aug-2024— /EuropaWire/ — The European Investment Fund (EIF) has committed €50 million to the newly launched Nine Realms Fund I K/S, a venture capital initiative focused on revolutionizing the supply chain sector with innovative, sustainable technologies. The fund, which aims to raise a total of €200 million, is set to accelerate the growth of early-stage companies that are pioneering solutions to reduce the environmental impact of global supply chains.

The investment by EIF is part of the broader InvestEU program, which supports sustainable and innovative projects across Europe. The commitment also falls under the Climate & Environment Solutions envelope, reflecting the EU’s strategic emphasis on combating climate change through targeted investments in transformative industries.

Nine Realms Fund I will target companies developing cutting-edge technologies that enhance supply chain efficiency while significantly reducing their carbon footprint. Areas of focus include supply chain digitalization, green logistics, industrial decarbonization, and innovations within the Blue Economy. By investing in these areas, the fund aims to tackle the substantial environmental challenges posed by global supply chains, which are responsible for up to 90% of the carbon footprint associated with consumer goods.

“Supply chains are an underestimated part of our climate puzzle.” said EIF Chief Executive Marjut Falkstedt. “In terms of both its carbon footprint and the optimisation of logistics for perishable goods, there is a lot to gain in this sector. We’re glad that Nine Realms takes on the challenge and are happy to support this as an integral part of our climate financing.”

With the EIF’s backing, Nine Realms is poised to fill a critical gap in the European venture capital landscape, where funding for logistics and supply chain innovation has lagged behind other regions, such as the United States. Despite Europe’s strong presence in the global logistics market, the continent currently accounts for a disproportionately small share of venture funding in this sector.

“We are thrilled that the European Investment Fund recognises the immense potential at the intersection of supply chain and sustainability.” added Sune Stilling, Managing Partner at Nine Realms VC. “Their investment in Nine Realms Fund I validates our vision to support transformative technologies that not only optimise efficiency and resiliency, but also drive significant environmental impact. With our deep expertise in both Supply Chain and Venture Capital, we are uniquely positioned to identify and nurture the next generation of game-changers in this €7 trillion market⁠⁠. Together, we’ll build a more resilient, efficient, and sustainable future for global supply chains.”

Nine Realms plans to allocate the majority of its investments within the European Union, with Germany identified as a key market. The firm also plans to establish a local presence in Germany to better support its portfolio companies and expand its influence in the region.

This new fund is expected to play a pivotal role in advancing Europe’s position in sustainable supply chain technology and addressing the growing demand for environmentally responsible business practices. Through strategic investments and targeted support, Nine Realms is set to empower a new generation of companies that are shaping the future of global supply chains.

Background information

The European Investment Fund (EIF): The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions 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 investments for EU policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently 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 implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. With the InvestEU mandate, European institutions – led by European Commission and EIB Group – aim to mobilise more than EUR 372 billion of public and private investments to finance sustainable investment, innovation and job creation throughout Europe over the period 2021-2027.

Nine Realms invests in the intersection of supply chain and sustainability. The fund targets early-stage companies with strong product-market fit and potential for rapid growth, primarily in Europe and the United States. The Nine Realms team, insiders in both Supply Chain and Venture Capital, is led by the Founder and former Managing Partner of Maersk’s Venture Arm, Maersk Growth. They delivered value to Maersk while becoming the leading early-stage supply chain investor with a proprietary value creation and sustainability framework. Their expertise and network enable the fund to identify, access and support transformative technologies that optimize efficiency, reduce waste, and enhance sustainability within the supply chain

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

Nine Realms:
Sune Stilling
+45 3091 1963
sune@9rvc.com

SOURCE: European Investment Fund