Norrsken VC second fund at €320M to support the impact entrepreneurs

Norrsken VC, a pioneer in impact investing in Europe, announces the final close of its second fund, supporting entrepreneurs who are tackling the world’s greatest problems.

The total fund size of €320 million – surpassing the original target of €250 million – is backed by Europe’s most significant institutional investors Folksam, AP1, and the European Investment Fund (EIF, whose commitment is supported under InvestEU), among others. The finalised total makes Norrsken VC Fund II the largest early-stage generalist impact fund in Europe.

Norrsken VC has a focus on investing in companies that have a tangible impact at the very core of the business model and is uncompromising in its search for outstanding financial returns. Sectors Norrsken VC invests include climate tech, energy, biotech AI, and health tech. Norrsken VC has invested in 50+ startups to date, including unicorns Northvolt, Einride, and 1KOMMA5°.

Niklas Adalberth, General Partner of the fund and Founder of Norrsken Foundation: “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 fund has strict criteria, 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. Norrsken VC was one of the first funds in Europe that implemented a structure that links its financial compensation incentives to achieving impact targets, demonstrating its commitment to impact.

Tove Larsson, General Partner of Norrsken VC, says: “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.”

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, 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.

David Frykman, General Partner of the Norrsken VC says: “We’re overwhelmed and thrilled to be closing this oversubscribed fund. This surge in interest validates our belief in the impact and 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."

Ylva Wessén, CEO of Folksam, says: “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, says: “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.”

Agate Freimane, General Partner of Norrsken VC, says: “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.”

Norrsken VC runs as an independent investment firm from the Norrsken Foundation and was established 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.