Stockholm, Sweden – Norrsken VC, a trailblazer in impact investing across Europe, has achieved a milestone with the final close of its second fund, aimed at supporting entrepreneurs dedicated to addressing pressing global challenges. The fund, originally targeted at €250 million, has surpassed expectations, reaching an impressive total of €320 million. This substantial backing comes from some of Europe’s most prominent institutional investors, including Folksam, AP1, and the European Investment Fund (EIF), with additional support from other key players in the investment landscape.
The €320 million fund solidifies Norrsken VC Fund II’s position as the largest early-stage generalist impact fund in Europe. Norrsken VC distinguishes itself by prioritizing investments in companies where tangible impact is deeply embedded within the business model. Sectors receiving support include climate tech, energy, biotech, AI, and health tech. With a portfolio boasting over 50 startups, including unicorns like Northvolt, Einride, and 1KOMMA5°, Norrsken VC has demonstrated its commitment to fostering impactful innovation.
Niklas Adalberth, General Partner of the fund and founder of Norrsken Foundation, emphasized the long-term vision driving their efforts, stating, “Our goal is to ensure that every dollar invested globally yields a net positive impact for both people and the planet. With Norrsken VC II, we aim to identify and empower exceptional founders who are catalysts for change, nurturing them to build impactful unicorns—companies that positively influence the lives of one billion people.”
The fund operates under stringent criteria aligned with the UN Sustainable Development Goals (SDGs), ensuring that impact and sustainability are integrated throughout the investment process. Complying with the EU’s Sustainable Financial Disclosures Regulation (SFDR) as an Article 9 or “dark green” fund, Norrsken VC pledges that 100% of its investments have clear environmental or social impact objectives. Notably, the fund pioneers a compensation structure that ties financial incentives to achieving impact targets, underscoring its unwavering commitment to effecting positive change.
Tove Larsson, General Partner of Norrsken VC, emphasized the urgency of their mission, stating, “Despite growing interest in impact investing, less than 1% of global capital is dedicated to this sector. Given the urgency of addressing pressing planetary challenges, including exceeding six of nine Planetary Boundaries, there is a critical need for investments in innovative solutions. Through our second fund, we are dedicated to identifying and supporting the most promising impact-driven founders in the DACH region.”
Backed by nearly 50 Limited Partners (LPs) seeking both impact and financial returns, Norrsken VC II boasts institutional support from AP1, Folksam, Saminvest, KfW Capital, and the Ireland Strategic Investment Fund (ISIF), among others. Notable financial backers include Credit Suisse, Investcorp-Tages, BMW, SEB-Stiftelsen, and Nordea, alongside a roster of unicorn founders and influential figures like Azeem Azhar.
David Frykman, General Partner of Norrsken VC, expressed gratitude for the overwhelming response, stating, “The enthusiastic support for our oversubscribed fund underscores confidence in the impact + return model pioneered in Sweden. With our expanded resources, we are poised to deepen our impact in our native market while actively seeking visionary founders across Europe. We are particularly interested in disruptors addressing climate change, advancing health solutions, responsible AI, and adaptation strategies.”
Ylva Wessén, CEO of Folksam, echoed the sentiment, acknowledging the fund’s potential to drive positive change through impactful entrepreneurship on a global scale. Marjut Falkstedt, Chief Executive of EIF, reaffirmed the organization’s commitment to supporting sustainable and socially responsible investments, highlighting the alignment with the InvestEU program.
Agate Freimane, General Partner of Norrsken VC, emphasized the fund’s unique approach, stating, “Sustainability isn’t a mere checkbox for us—it’s the foundation of our investment thesis. Combined with our extensive expertise and proven track record, this approach attracts the most inspiring mission-driven founders. For Norrsken VC, impact isn’t an option; it’s our shared bottom line.”
Founded by General Partners David Frykman, Tove Larsson, Agate Freimane, and Niklas Adalberth, Norrsken VC operates independently from the Norrsken Foundation. With a diverse team comprising seasoned investors and startup operators, Norrsken VC remains dedicated to its global investment thesis while continuing to drive impactful change from its Swedish base.
