The European Investment Fund (EIF) announced on Thursday that it has signed a €50 million investment agreement with Fund IK/S, the latest fund from Copenhagen-based Nine Realms Venture Capital, targeting €200 million.
The EIF commitments are supported by the European Commission’s InvestEU joint capital instrument and climate and environment solutions.
“Supply chains are an underrated piece of our climate puzzle,” said EIF CEO Marjut Falkstedt. “There is a lot to be gained in this sector in terms of optimizing carbon footprints and logistics for perishable goods. We are delighted that Nine Realms has taken up the challenge and are happy to support them as an essential part of their climate financing.”
EIF is part of the EIB Group. It supports European SMEs by improving access to finance through a wide range of selected financial intermediaries.
EIF designs, promotes and implements equity and debt financing instruments for SMEs. In this role, EIF promotes EU objectives of supporting entrepreneurship, growth, innovation, research and development, green and digital transformation and employment.
Utilization of funds
Nine Realms will support early-stage companies in supply chain technology through its latest fund, with a focus on climate and environmental impact, including the Blue Economy.
Nine Realms will focus primarily on the EU, with over 70% of investments to be made in EU countries.
The fund will focus particularly on Germany, already a key market for the fund manager, and will also open a local office there.
With this fund, the Danish company aims to bridge the funding gap in Europe’s nascent supply chain technology sector and the maturity gap between the European and US ecosystems.
Europe currently accounts for 13% of all venture capital and over 50% of logistics venture capital, while receiving only 5% of global logistics venture capital.
A large logistics company.
Nine Realms Fund: An investor specializing in supply chain.
Nine Realms invests at the intersection of supply chain and sustainability. The fund targets early-stage companies with strong product-market fit and rapid growth potential, primarily in Europe and the US.
The Nine Realms team, comprised of insiders from the supply chain and venture capital industries, is led by the founder and former Managing Partner of Maersk Growth, Maersk’s venture arm.
Sune Stilling, Managing Partner at Nine Realms VC, added: “We are delighted that a European investment fund has recognised the enormous potential at the intersection of supply chain and sustainability.”
“Their investment in Nine Realms Fund I demonstrates our vision to support innovative technologies that not only optimise efficiency and resilience, but also have a significant environmental impact. With our deep expertise in supply chain and venture capital, we are uniquely positioned to identify and nurture the next game changers in this €7 trillion market. Together, we will build a more resilient, efficient and sustainable future for global supply chains,” Stilling added.