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Norrsken VC Secures $345 Million for Impact-Focused Venture Fund

Norrsken VC Raises €320 Million for Second Fund to Support Impact Entrepreneurs

Norrsken VC, a Stockholm-based early-stage impact venture investor, has announced the successful close of its second fund, raising a total of €320 million (USD$345 million). This amount surpasses the firm’s initial target of €250 million, making Norrsken VC Fund II the largest early-stage generalist impact fund in Europe.

The fund, created out of the non-profit impact ecosystem Norrsken, aims to support entrepreneurs who are working to solve some of the world’s biggest challenges. Norrsken VC has already invested in over 50 startups in areas such as climate tech, energy, biotech AI, and health tech, with previous investments including unicorns like Northvolt, Einride, and 1KOMMA5°.

Niklas Adalberth, General Partner of the fund and Founder of Norrsken Foundation, expressed the long-term vision of the organization, stating, “Our long-term vision is to see every dollar invested globally as a net positive for people and planet. With Norrsken VC II we aim to find, back and empower force of nature founders, and set them on a path to build impact unicorns – companies that positively impact 1 billion lives.”

The new Article 9 fund will focus on investing in more than 30 impact startups, with a strict criteria linked to UN Sustainable Development Goals (SDGs). This includes assessing impact and sustainability throughout the entire investment process, from deal screening to exit.

The fund has received backing from almost 50 LPs, including institutional investors such as AP1, Folksam, Saminvest, KfW Capital, and the Ireland Strategic Investment Fund (ISIF), as well as financial backers like Credit Suisse, Investcorp-Tages, BMW, SEB-Stiftelsen, and Nordea.

Tove Larsson, General Partner of Norrsken VC, highlighted the urgency of impact investments, stating, “While more funds have joined the sector since our inception, it remains relatively uncrowded, with less than 1% of global capital dedicated to impact investments. Urgency is evident as we’ve exceeded six of nine Planetary Boundaries, underscoring the need for investments in innovations for a more habitable world.”

Overall, Norrsken VC’s successful fundraising efforts demonstrate a growing interest in impact investing and a commitment to supporting entrepreneurs who are working towards a more sustainable and equitable future.

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