The European Investment Fund (EIF) has committed €50 million to support the latest sustainable supply chain fund by Danish VC firm Nine Realms.
The fund will support sustainable supply chain-related early-stage technology-enabled SMEs. The investment’s primary objective is to support businesses with innovative ideas to reduce the environmental impact of the global supply chain, which can make up to 90% of the environmental impact of a consumer commodity.
The fund has a target size of €200 million and will specifically target supply chain and transportation technology, industrial decarbonization & environmental sustainability, and the Blue Economy for its investments. Nine Realms will focus primarily on the EU, directing at least 70% of investments to EU countries. The fund will focus on Germany, already a key market for the fund manager, where it will also open a local office.
Marjut Falkstedt, Chief Executive of EIF, stated:
“An underappreciated component of our climate puzzle is supply chains. This industry has a lot to gain in terms of both its carbon footprint and the optimization of logistics for perishable commodities. Nine Realms embraces a significant challenge, and we proudly support it as a key part of our climate finance efforts.”
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Sune Stilling, Managing Partner at Nine Realms VC, continued:
“We are delighted that the European Investment Fund recognizes the immense potential at the intersection of supply chain and sustainability. Their participation in Nine Realms Fund I is a testament to our vision to encourage innovative technologies that have a major environmental effect in addition to maximizing efficiency and resilience. Because of our extensive knowledge in venture capital and supply chain management, we are in a unique position to spot and develop the next wave of disruptive innovators in this €7 trillion industry. Together, we’ll create a future for global supply chains that is more robust, effective, and sustainable.”
Nine Realms aims to bridge the maturity gap between the European and American ecosystems and one of the funding gaps currently present in the early-stage supply chain technology sector in Europe. Despite accounting for 13% of global venture investment in the logistics sector and hosting the headquarters of over 50% of big logistics companies, Europe now receives only 5% of venture capital in this domain.
