Momentum lands EIF backing to support green tech in the Nordics

• The European Investment Fund signs commitment to Momentum’s new green tech fund.
• Financing benefits from the support of the European Commission’s InvestEU initiative.
• Momentum to target around 20 early stage companies within climate tech, including in the blue economy.

The European Investment Fund (EIF) is investing NOK 295 million (around €25 million) in Momentum III, a Norwegian climate and environmental impact fund focused on bold early-stage green technology in the Nordics. With a target size of NOK 600 million (more than €50 million), the fund’s strategy is split three-way between investing in sustainable agrifood production, clean energy and energy efficiency, and decarbonising of industry. Across these three focus areas, Momentum will maintain a strong focus on the blue economy in its portfolio. The EIF’s commitment in the fund is supported by the European Commission through its InvestEU initiative.

Hilde Støle Pettersen, managing partner at Momentum, said: “We are very proud to welcome EIF as our cornerstone investor in Momentum’s third fund. This backing strengthens our position in the pursuit of international climate tech successes from the Nordics. We look forward to being part of EIF’s ecosystem of bold innovators.”

“To reach its climate goals, Europe needs to double its efforts.” added EIF Chief Executive Marjut Falkstedt. “Clean technology solutions are expected to play a big role in cutting greenhouse emissions up to 2030, and these innovations need the appropriate capital. The EIF is here to support that.”

EU Ambassador to Norway Nicolas de La Grandville commented: “The EIF’s support to Momentum is an excellent example of how the InvestEU programme can facilitate the green and digital transitions, and enhance Europe’s competitiveness and resilience. In the current geopolitical context, it is imperative to strengthen Europe’s resilience and support companies that innovate and bring European technology to a global market. Norway is a key partner of the EU in finding common solutions to our shared challenges.”

With its new fund, Momentum will broaden its geographical scope outside of Norway, aiming to invest around 20% of the fund in the EU-27, and notably in other Nordic countries, all regions with a need for more green tech investors. With a larger size than its predecessors, Momentum expects the Fund to be able to invest in around 20 early-stage companies, with focus on the seed stage.

EIF’s investment, combined with the backing from a strong group of Norwegian investors, is catalytic in terms of unlocking access to valuable funding for early-stage climate tech companies in Norway and beyond. The fund is currently preparing its first closing and expects to start investing early in 2025.

Background information:

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. Since its first project in Norway, in 1974, the EIB Group has made available nearly €8 billion to support projects in the EFTA region, about €5 billion through the EIB and over €2,7 billion through the EIF. On the whole, in Norway alone the EIB Group has made available nearly €5 billion euros throughout the years between EIB and EIF financing.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

Momentum Venture Management AS is amongst the few specialised Norwegian venture capital investors to focus on climate and environmental innovation. Momentum has raised two predecessor funds, fund I of a 2017 vintage and NOK 62.21m (c. €5.46m) in size and fund II of a 2020 vintage and NOK 381.00m (c. €33.45m) in size.

Press contact:

EIB Group: Tim Smit | +352 691 286 423 | t.smit@eib.org

Momentum: Hilde Støle Pettersen | +47 41 23 46 11 | hilde@momentumpartners.no

European Commission: Ignazio Cocchiere | +32 2 29 82261 | ignazio.cocchiere@ec.europa.eu

EU Delegation to Norway: Savannah Vellandi | +47 408 43 426 | Savannah.VELLANDI@eeas.europa.eu