Momentum’s Green Tech Fund Secures Backing from European Investment Fund

Momentum’s Green Tech Fund Secures Backing from European Investment Fund

(IN BRIEF) The European Investment Fund (EIF) has committed NOK 295 million (€25 million) to Momentum III, a Norwegian fund targeting early-stage climate tech companies in the Nordics and EU-27. Backed by the European Commission’s InvestEU initiative, the fund will focus on sustainable agrifood, clean energy, industrial decarbonization, and the blue economy. Momentum plans to support around 20 companies, with 20% of investments allocated outside Norway. EIF Chief Marjut Falkstedt emphasized the need for clean tech funding to meet Europe’s climate goals, while EU Ambassador Nicolas de La Grandville highlighted the investment’s role in driving Europe’s green and digital transitions. Momentum III aims to begin investing in early 2025.

(PRESS RELEASE) LUXEMBOURG, 18-Dec-2024 — /EuropaWire/ — The European Investment Fund (EIF) has announced a significant investment of NOK 295 million (approximately €25 million) in Momentum III, a Norwegian fund dedicated to advancing green and climate technologies in the Nordic region. The fund, which aims to raise NOK 600 million (over €50 million), focuses on early-stage companies driving innovation in three key sectors: sustainable agrifood production, clean energy and energy efficiency, and industrial decarbonization. A strong emphasis on the blue economy will also shape its investment portfolio. This EIF commitment is supported by the European Commission’s InvestEU initiative.

Hilde Støle Pettersen, managing partner at Momentum, expressed her enthusiasm, stating: “Having EIF as our cornerstone investor is a major milestone for Momentum’s third fund. This partnership bolsters our efforts to champion international climate tech successes originating from the Nordics. We’re eager to collaborate within EIF’s ecosystem of trailblazing innovators.”

Momentum III aims to support approximately 20 early-stage companies, particularly those at the seed stage. While primarily focused on Norway, the fund plans to broaden its reach, targeting 20% of investments within the EU-27, including other Nordic countries, regions that would benefit from enhanced green tech investment activity.

EIF Chief Executive Marjut Falkstedt underscored the urgency of this initiative, commenting, “Europe must intensify its efforts to meet climate targets. Clean tech innovations will play a pivotal role in reducing greenhouse gas emissions by 2030, but these solutions need access to appropriate funding. That’s where the EIF steps in.”

Echoing these sentiments, EU Ambassador to Norway Nicolas de La Grandville emphasized the broader implications of the investment: “The EIF’s partnership with Momentum exemplifies how the InvestEU programme drives Europe’s green and digital transformations while enhancing resilience and competitiveness. In today’s geopolitical climate, fostering innovation and strengthening Europe’s resilience are crucial. Norway remains a vital partner for the EU in addressing shared global challenges.”

With Momentum III, the fund is poised to unlock vital resources for early-stage companies in climate tech, not only in Norway but also across Europe. The larger fund size compared to its predecessors is expected to enable Momentum to significantly scale its impact, targeting transformative innovations in the green tech space.

The fund, currently preparing for its first closing, anticipates beginning its investments in early 2025, leveraging a combination of EIF’s investment and contributions from a robust network of Norwegian investors to catalyze sustainable development and innovation.

Background information:

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. Since its first project in Norway, in 1974, the EIB Group has made available nearly €8 billion to support projects in the EFTA region, about €5 billion through the EIB and over €2,7 billion through the EIF. On the whole, in Norway alone the EIB Group has made available nearly €5 billion euros throughout the years between EIB and EIF financing.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, 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 invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

Momentum Venture Management AS is amongst the few specialised Norwegian venture capital investors to focus on climate and environmental innovation. Momentum has raised two predecessor funds, fund I of a 2017 vintage and NOK 62.21m (c. €5.46m) in size and fund II of a 2020 vintage and NOK 381.00m (c. €33.45m) in size.

Media Contacts:

EIB Group: Tim Smit | +352 691 286 423 | t.smit@eib.org

Momentum: Hilde Støle Pettersen | +47 41 23 46 11 | hilde@momentumpartners.no

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

EU Delegation to Norway: Savannah Vellandi | +47 408 43 426 | Savannah.VELLANDI@eeas.europa.eu

SOURCE: European Investment Fund