Dutch VC Firm 4impact Capital Secures €68M for Sustainable Tech Startups
The Hague, Friday, 8 November 2024.
4impact Capital, a Hague-based venture capital firm, has closed its second fund at €68 million, targeting early-stage digital and sustainability ventures in Northwestern Europe. The fund aims to invest in about 25 innovative software companies, focusing on climate technology, inclusion, health, and well-being.
Strategic Investment Focus
The newly secured fund is part of 4impact Capital’s strategic expansion to foster technological advancements with a measurable impact on sustainability. With investments planned in the Benelux, DACH, and Nordic regions, the fund emphasizes sectors that integrate digital solutions with sustainable practices. At least 20% of the fund’s capital is earmarked for projects within the Netherlands, showcasing a strong commitment to local innovation and development.[1][2]
Prominent Backers and Commitments
Prominent entities such as the European Investment Fund (EIF) and Invest-NL have played pivotal roles in backing this initiative. EIF’s contribution of €17.5 million, alongside Invest-NL’s €7.5 million, underscores a robust partnership aimed at addressing Europe’s innovation finance gap. Both organizations are known for their commitments to sustainability and societal benefits, aligning closely with 4impact’s mission to catalyze positive change through investment.[1][3]
A Track Record of Impact
Since its establishment in 2019, 4impact Capital has consistently sought to merge venture capital with sustainability. The firm’s first fund laid the groundwork for this approach, and Fund II continues this trajectory by supporting companies like Coolgradient and Carbonfuture. These ventures exemplify the fund’s focus on addressing global challenges, such as energy efficiency and carbon removal, through innovative technology. The fund operates under the SFDR Article 9 classification, indicating a strong commitment to sustainable investments.[3][4]
Vision for a Sustainable Future
4impact Capital’s philosophy extends beyond mere financial returns. Founding partner Pauline Wink emphasizes the importance of partnerships in driving growth and success for startups. The fund’s long-term vision involves empowering businesses that can deliver both social and environmental value, thereby contributing to a sustainable and competitive Europe. The initiative also highlights the role of emerging technologies, like AI and blockchain, in solving contemporary challenges such as labor shortages and emission reductions.[5][6]