The European Investment Fund (EIF) has signed a €50 million participation in Danish VC Nine Realms’ latest fund. The fund has a target size of €200 million. The new fund will support early-stage technology-enabled SMEs in the supply chain sector.
This follows the recent investments in European VC firms Balderton Capital and Lead Ventures.
Investment details
The main goal of the investment is to support companies with strong ideas to improve the environmental footprint of the global supply chain, which can account for up to 90% of a consumer good’s footprint.
It will target supply chain and transportation technology, industrial decarbonisation & environmental sustainability, and the Blue Economy for its investments.
At least 70% of the investments from the Nine Realm fund is destined for EU countries. It will have a particular focus on Germany, which is a key market for the fund manager, where it will also open a local office.
“Supply chains are an underestimated part of our climate puzzle,” added 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.”
Prime focus of the VC
Currently, Europe accounts for only 5% of logistics venture funding worldwide, while representing 13% of overall venture funding, and despite having more than 50% of large logistics companies headquartered in Europe.
Nine Realms eyes to address one of the existing funding gaps in the early-stage segment of the supply chain technology sector in Europe. Also, it intends to bridge the maturity gap between the European and American ecosystems. As a result, it focuses on investing in European companies.
“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.”
