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Norrsken VC closes Fund II at €320M to back impact entrepreneurs in Europe

Norrsken VC team
Picture credits: Norrsken

Norrsken VC, a Swedish company known for impact investing in Europe, has announced the final close of its second fund at €320 million. The initial target of this fund was €250 million. The finalised total makes Norrsken VC Fund II the largest early-stage generalist impact fund in Europe.

The Norrsken VC II fund is backed by almost 50 LPs, looking for impact as well as financial returns. Institutional investors include AP1, Folksam, Saminvest, KfW Capital, the European Investment Fund (EIF, whose commitment is supported under InvestEU), and the Ireland Strategic Investment Fund (ISIF). Further financial backers include Credit Suisse (now merged with UBS Group), Investcorp-Tages, BMW, SEB-Stiftelsen and Nordea. The fund is finalised by a roster of unicorn founders and influential business figures, including Azeem Azhar.

Ylva Wessén, CEO of Folksam, added, “With this close of a €320 million oversubscribed fund, we know we’re not alone in believing in the potential of Norrsken VC to drive positive change in addressing global challenges through innovative and impactful entrepreneurship.”

Marjut Falkstedt, Chief Executive of EIF, stated, “Our relation with Norrsken VC goes back to their first fund, and we’re happy to once again partner up in support of sustainable and socially responsible investments, this time with the backing of the InvestEU programme. In line with the EIF’s priorities in terms of making sure that impactful European businesses have access to the finance they need, Norrsken VC’s impact investing is a great asset in the European VC landscape.”

David Frykman, General Partner of the Norrsken VC said, “We’re overwhelmed and thrilled to be closing this oversubscribed fund. This surge in interest validates our belief in the impact + return model we’ve helped establish here in Sweden. With our new fund, we’ll double down on our native market while simultaneously looking across Europe for visionary founders who share our passion for creating a better future. We’re looking for disruptors tackling climate change through innovative energy solutions, alongside advancements in health, responsible AI, and adaptation strategies.”

Focuses on social and environmental impact

The fund has strict criteria, which is linked to UN Sustainable Development Goals (SDGs), that assess impact and sustainability across the entire investment process, from deal screening, and due diligence to deal structuring and exit. Norrsken VC also complies with the EU’s Sustainable Financial Disclosures (SFDR) regulation as an Article 9 or “dark green” fund, meaning that 100% of investments have a clear environmental or social impact objective.

Niklas Adalberth, General Partner of the fund and founder of Norrsken Foundation, said “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.”

Tove Larsson, General Partner of Norrsken VC, added, “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. We’ve openly shared our investment philosophy, urging fellow impact investors to adopt it and thrive. With our second fund, we’re committed to finding the best impact founders in the DACH region.”

Agate Freimane, General Partner of Norrsken VC, added, “Climate is now the number one biggest vertical in European VC, and for good reason. What sets Norrsken VC apart is our unwavering Article 9 commitment. This means sustainability isn’t a checkbox, it’s the investment thesis. This, combined with our deep expertise and proven track record, makes us a magnet for the world’s most inspiring mission-driven founders. For us, impact isn’t optional, it’s our shared bottom line.”

Investments by the Swedish VC

Norrsken VC runs as an independent investment firm from the Norrsken Foundation and was established in 2016 by the four general partners David Frykman (ex. Gymgrossisten), Tove Larsson (Bain & Company), Agate Freimane (Morgan Stanley) and Niklas Adalberth (co-founder of payment services unicorn Klarna). 

The rest of the 15-strong Norrsken VC comprises life-long investors across venture capital, private equity and investment banking, plus startup operators. The team is predominantly Sweden-based but with a global investment thesis.

Notably, the venture capital firm invests in sectors, including climate tech, energy, biotech AI and health tech. It focuses on companies that have a tangible impact at the very core of the business model and deliver outstanding financial returns. Its mission to enable the next impact unicorn, a company that has a positive impact on 1 billion people. 

It has invested in 50+ startups to date, including unicorns Northvolt, Einride, CEEZER , Sunsave, and 1KOMMA5°.

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