Helsinki-based VC firm Innovestor has announced a new €100 million fund, and its first close of €30 million, that will go toward industrial technology startups in the Nordic and Baltic regions. Innovestor’s new fund will offer early-state investments to companies in the Nordics and Baltics that focus on Industry 4.0 and related sectors, such as smart cities, cyber and physical security, and digital energy.
“Our focus is extremely specific because we are aware that adjacent megatrends close to Industry 4.0 such as sustainability, connectivity, and data security will grow in the long-term future and require more support, and we will be at the forefront of that,” explained CEO Tommi Äijälä.
The pre-series A and series A cheques will go to B2B companies that already show product-market fit, traction, and the readiness to scale. Innovestor believes there is a swathe of startups at this phase who shut down, not for faulty business elements but for lack of funding.
“A massive funding gap has developed for good Series A companies who are being overlooked or underfunded due to the lack of investors in the market. This crunch creates opportunities to invest in comparatively de-risked but moderately valued companies,” said Myron Seto, a partner at the Finnish firm.
The new fund is backed by institutional investors such as Mandatum Life, as well as family offices and individuals. The first investments will be made as early as Q2 of this year.
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