In a significant development for climate technology investments, Momentum Venture Management, a Norwegian venture capital firm with a resolute commitment to environmental innovation, has welcomed the European Investment Fund (EIF) as a cornerstone investor. The EIF’s commitment amounts to an impressive NOK295 million (€25 million), marking a pivotal moment for Momentum’s third fund, which ambitiously targets a total of NOK600 million.
This new fund aims to channel investments into approximately 20 early-stage companies that operate within the climate tech sphere, particularly emphasizing the evolving blue economy—a sector increasingly recognized for its potential in addressing ecological challenges. The managing partner at Momentum, Hilde Støle Pettersen, elaborated that this venture embodies a natural progression of their ongoing commitment to climate technology and sustainability, building on the foundation laid by their previous funds initiated in 2017 and 2020, which raised NOK62.2 million and NOK381 million, respectively.
“We are actively scouting for visionary technology founders with a defined climate agenda,” Støle Pettersen stated, highlighting a keen interest in sectors spanning food and agriculture, the energy transition, and decarbonizing industry. She emphasized that alongside their commitment to climate mitigation, they are equally dedicated to exploring solutions that foster a positive impact on the blue economy.
Investor Landscape
Momentum’s roster of investors extends beyond the EIF, featuring notable names such as Norwegian family offices Farvatn Venture and Ferd Impact, as well as KLP, a prominent Norwegian pension fund, and Investinor, a state-backed fund-of-funds investor. Støle Pettersen voiced her pride in solidifying continued support from these investors, noting that many professional investors tend to align their interests with EIF’s investments due to its rigorous evaluative prowess.
The EIF’s engagement is further bolstered by backing from the European Commission via its InvestEU initiative, a program designed to mobilize substantial private and public funds to bolster a sustainable economy.
A Call for Urgency
As articulated by Marjut Falkstedt, the chief executive officer of EIF, there is an urgent need for Europe to intensify its climate-related endeavors. “To fulfill its climate aspirations, Europe must accelerate its efforts,” she urged. Falkstedt emphasizes that clean technology innovations are critical for achieving significant reductions in greenhouse gas emissions by 2030, necessitating the infusion of appropriate capital to drive these initiatives.
Focus on Climate Adaptation
Momentum’s third fund plans to allocate nearly 20% of its capital commitments across other EU territories. The fund is designed to have a lifespan of 10 to 12 years, predominantly focusing on seed-stage investments. Støle Pettersen revealed their aspiration for annual net returns exceeding 20%, a target aligned with their historical performance.
Nevertheless, while the primary objective revolves around combating climate change, she acknowledged the burgeoning potential inherent in climate adaptation strategies. “Society must brace itself for the catastrophic impacts of climate change, which we are already experiencing and which are set to escalate dramatically. Building resilient communities is not just essential—it remains grossly underfunded in today’s landscape,” Støle Pettersen concluded, underscoring a pressing call for broad-based financial backing in this critical arena.
