The European Investment Fund (EIF) is investing €40 million, with support from the InvestEU programme, into the European climate tech growth equity fund Blume Equity. 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.
This is one of the largest investments EIF has made into a first-time growth-stage fund.
The investment is part of the EIF's mission to support high-growth and innovative Small and Medium Enterprises (SME) across Europe, as well as to ensure at least 25% of its activity is in climate and environment-related projects by 2024.
Blume Equity is one of Europe's leading climate tech growth funds. The firm invests in companies supporting the transition to a low carbon economy and a more sustainable environment. Climate tech is one of the fastest-growing areas of European tech, supported by compelling macro and regulatory tailwinds. Europe needs to mobilize trillions in sustainable investments to address the climate emergency and the European Union has developed the European Green Deal in response. While there is a robust early stage venture ecosystem, there is a well-documented funding gap at the scale-up stage for climate tech companies, which Blume seeks to address with its strategy.
Blume's recent investments include Sensorfact, a provider of Internet of Things (IoT) data solutions to enable industrial SMEs to be more resource efficient; Normative, a carbon accounting platform focusing on Scope 1, 2 and 3 emissions for large enterprise clients; Matsmart-Motatos, a company tackling food waste from fast-moving consumer goods; and Aerones, a leader in robotic inspection and maintenance services to the wind turbine industry.
Established by three female co-founders, Blume integrates sustainability across the entire investment process, driving both financial returns and impact. The founding team has deep investment experience, with a strong focus on sustainability.
The EIF's financing into Blume Equity comes from the EIF, the InvestEU programme, and a regional mandate from The Netherlands (the Dutch Future Fund).
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."
"The green transition must be accelerated to meet our current climate and environmental challenges," said EIF Chief Executive Marjut Falkstedt. "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."
Background information:
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union's policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, 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 that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increasing their risk-bearing capacity and thus mobilising at least €372 billion in additional investment.
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 enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability and more.
Blume Equity, the European climate tech growth investor, is dedicated to delivering profit with purpose. Established by Clare Murray, Eleanor Blagbrough and Michelle Capiod, Blume supports fast-growth European businesses addressing the climate crisis to scale. With hubs in Amsterdam and London, Blume works in close partnership with management teams on the growth journey, drawing upon the Blume team's long scale-up and sustainability experience. The founding team previously worked at BlackRock, Goldman Sachs, McKinsey and investment firms ECI Partners and Mid Europa Partners. Blume's network of advisors include Diane Holdorf (Senior Executive at the World Business Council for Sustainable Development), Vivian Bertseka (formerly partner at Generation and Just Climate) and Sir Dave Lewis (former CEO of Tesco). Blume has been recognised as a leader in impact investing, winning awards from Real Deals and ImpactAssets.
