In a landmark investment, the European Investment Fund (EIF) is injecting €40 million into Blume Equity, a leading European climate tech growth fund. This investment, backed by the InvestEU programme, marks one of the EIF's largest commitments to a first-time growth-stage fund. The move aims to bridge the funding gap for scaling climate tech companies and aligns with the European Union's broader sustainability goals.
The Investment Landscape
The EIF joins an impressive roster of investors, including AP4 (the Swedish National Pension Plan), Visa Foundation, and Impact Engine, among others. These institutional investors are collectively betting on the future of European climate tech companies. The investment is part of the EIF’s broader mission to support high-growth and innovative Small and Medium Enterprises (SMEs) across Europe. Moreover, the EIF aims for at least 25% of its activities to be climate and environment-related by 2024.
About Blume Equity
Founded by three female entrepreneurs with a strong focus on sustainability, Blume Equity is at the forefront of Europe's climate tech sector. The firm invests in companies that are pivotal in transitioning to a low-carbon economy and fostering a more sustainable environment. Blume's portfolio includes diverse companies like Sensorfact, which offers IoT data solutions for resource efficiency; Normative, a carbon accounting platform; Matsmart-Motatos, a company addressing food waste; and Aerones, a leader in robotic wind turbine maintenance.
The European Green Deal and the Funding Gap
Blume's investment strategy seeks to address a well-documented funding gap at the scale-up stage for climate tech companies. This is particularly crucial as Europe mobilizes trillions in sustainable investments to combat the climate crisis, guided by the European Green Deal.
Commissioner for the Economy, Paolo Gentiloni, emphasized that the InvestEU programme focuses on common priorities like transitioning to a low-carbon economy. EIF Chief Executive Marjut Falkstedt highlighted the role of innovation and technology in accelerating the green transition. Clare Murray, co-founder of Blume Equity, expressed delight in partnering with EIF and other investors, underscoring the EU's commitment to both the environment and the growth-stage ecosystem.
The €40 million investment into Blume Equity is more than just a financial commitment; it's a testament to the European Union's dedication to fostering a greener, more sustainable future. By targeting the scale-up stage of climate tech companies, this investment aims to catalyze innovation and drive both financial returns and positive environmental impact.
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