Nordic Foodtech VC secures up to €30M from EIF for second

Nordic Foodtech VC has received a commitment of up to €30 million from the European Investment Fund (EIF) for its second venture fund. The Helsinki-based firm is targeting a total fund size of €80 million and has already held a first close at €40 million.

The EIF's pledge is backed by the InvestEU programme. It is expected to help attract additional private capital. The fund aims to support the commercialization of technologies designed to make food production more sustainable and resilient.

Many science-based agrifood companies in Europe struggle to secure financing at their earliest stages. This is when technologies must transition from research to commercial use. The EIF's involvement aims to bridge that gap.

Fund Strategy and Focus

NFT.VC Fund II will focus on pre-seed and seed-stage ventures. It plans to invest in approximately 30 companies, primarily across Northern Europe, while also pursuing opportunities elsewhere on the continent. The fund's investment areas include agriculture, food, health, aquaculture, and broader biosolutions.

A key part of the strategy is backing spin-outs from universities and research centers. Nordic Foodtech VC combines investment capital with scientific and industry expertise to guide companies through their initial development phase. The firm's first fund has already invested in 18 companies across the Nordic and Baltic regions.

Leadership and European Ambition

Karl Nehammer, EIB Group Vice-President, highlighted the need for capital to move research to market. "While Europe has excellent research in food and agriculture, promising technologies need capital and expertise to make the leap from the laboratory to the market," he said. The EIB Group believes its investment will help turn new ideas into businesses that bolster food security and climate resilience.

Mika Kukkurainen, co-founder and managing partner of Nordic Foodtech VC, stated the EIF's support expands the firm's reach. "With EIF’s support, we’re growing our reach across all of Northern Europe," Kukkurainen said. He added that the portfolio companies are building deep-tech solutions for Europe's food security and nutrition needs.

Investment Framework and Objectives

The EIF's commitment is supported by the InvestEU equity product for climate and environmental solutions. This includes specific funding from the European Maritime, Fisheries and Aquaculture Fund for investments in the "blue economy." EIB Risk Capital Resources also back the investment.

The majority of the fund's investments are anticipated to contribute to climate action and environmental sustainability goals. Also, the fund will aim to support gender diversity within its portfolio. The final close is anticipated to bring the fund very close to its €80 million target.