Climate tech is one of the fastest-growing areas of European tech, supported by compelling macro and regulatory tailwinds. However, there is a well-documented funding gap at the scale-up stage for climate tech companies. Blume Equity, a European female-founded climate tech growth investor, addresses this issue by supporting fast-growth European businesses addressing the climate crisis to scale. It invests in high-growth climate tech scale-ups that drive decarbonisation and broader environmental sustainability
Blume Equity has closed a €40 million fund from the European Investment Fund (EIF). This partnership was made possible with the support of the InvestEU programme, which aims to trigger over €372 billion in additional investment over the period 2021-27 across Europe.
This is one of the largest investments EIF has made into a first-time growth-stage fund. EIF joins an investor base that includes AP4 (the Swedish National Pension Plan), Visa Foundation, Impact Engine (a US impact fund-of-funds programme) and other institutional investors who see the opportunity to invest into the next generation of European climate tech companies.
The investment is part of the EIF’s mission to support high-growth and innovative SMEs across Europe, and to ensure at least 25% of its activity is in climate and environment-related projects by 2024.
Commissioner for the Economy, Paolo Gentiloni, said, “the InvestEU programme supports investments across Europe, focusing on our common priorities, including the transition to a low-carbon and more sustainable economy. I am delighted that, thanks to this new agreement, additional investment will be channeled towards high-growth and cutting-edge SMEs engaged in climate and environmental initiatives. This is a great example of how InvestEU helps make Europe greener, more digital and more innovative, thus contributing to sustainable growth and the creation of quality jobs.”
EIF Chief Executive Marjut Falkstedt, said, “the green transition must be accelerated to meet our current climate and environmental challenges. Innovation in all sectors of our economy and cutting-edge technology will play a major role in achieving it. With the backing of the InvestEU programme and the Dutch Future Fund, we are very happy to invest in the female-led Blume Equity Fund to support disruptive businesses with a positive impact on people and planet.”
Clare Murray, Co-Founder of Blume Equity, said, “we are delighted to partner with EIF alongside other investors, such as AP4 and Visa Foundation. By supporting Blume with one of the largest investments EIF has made to a first time fund, the European Union highlights its commitment both to the environment and to supporting the growth-stage ecosystem in Europe. This partnership will help us continue our profit with purpose mission to support entrepreneurs tackling the climate emergency.”
Source: Tech Funding News
