4impact capital closes €68M Fund II to drive digital innovation and sustainability

4impact capital launched its first fund in 2019 with a vision to catalyse a sustainable world. They have combined rapid technological innovation with a commitment to measurable, positive impact combined with strong financial returns. The diverse and international team at 4impact brings experience from Goldman Sachs, Mubadala, Hayfin, Redkiwi, Future Fit Foundation and Citi, complemented by seven venture partners in Europe and the US – who are industry experts who have built successful businesses and fostered impact-driven cultures.

Since its first closing last year, Fund II has backed six transformative ventures. Notable examples are Coolgradient, which optimizes energy and water consumption in data centers, Deftpower is advancing its mission to leverage EV batteries to address grid imbalances while Carbonfuture, the world’s leading provider of high quality durable carbon removal credits, recently secured a successful Series A funding round led by Six, the Swiss Stock Exchange.

“We are a complementary and diverse team committed to working closely with our portfolio companies. We don’t just invest - we partner with them, providing the support needed to fuel their growth and success. What drives us is the opportunity to catalyse positive change, and we are excited to help shape the businesses of the future,” said 4impact founding partner Pauline Wink.

Founding partner Ali Najafbagy adds: “We are very grateful to our investors who back us to support visionary entrepreneurs who are working hard on making our planet future proof through technology enablement. Our tech focus areas are remote sensing, AI and big data, and emerging technologies such as blockchain. Through these digital technologies we can help solve parts of labour shortage and contribute to a sustainable and competitive Europe and beyond.”

The successful launch of Fund II is backed by early supporters and visionary investors, including founders, industry leaders and institutional investors such as Invest-NL, the European Investment Fund (EIF) and Oost NL, and the Netherlands Enterprise Agency (RVO),reflecting confidence in 4impact’s mission of impact investing.

“In tackling the innovation financing gap, we have to do all we can to support innovative small businesses, so that they can both start-up in Europe but also stay and grow in Europe.” says Marjut Falkstedt, Chief Executive of the EIF. “4impact capital’s mission to empower startups with transformative potential aligns with this EIF objective to support innovation while generating social and environmental value. Funds like these have the potential to make a significant impact on Europe’s sustainable future.”

Jellie Banga, Member of the Executive Board of Invest-NL, stated: "Invest-NL's additional investment in 4impact, as part of the Dutch Future Fund initiative, highlights our strong partnership with the EIF. Our combined ticket resulted in a successful final closing, providing increased capital to support impactful ventures."

‘‘With new capital and the backing of our venture partners - who bring leadership experience from companies like Tesla, Apple, and Dept - we’re stepping into an exciting phase for impact-driven founders. The acceleration of AI presents not just opportunities, but responsibilities. How can we leverage AI for good -e.g. using predictive analytics to reduce emissions and foster a more sustainable society? The time to act is now, and we’re here to support those bold enough to take on this challenge.” said partner Victor Straatman.

Background information:

‍4impact capital is a prominent early-stage impact investor in European digital startups. 4impact capital supports passionate founders dedicated to advancing sustainability and creating measurable change, aligned with the Sustainable Development Goals (SDGs),particularly in the areas of Planet and People. Currently, 4impact capital is investing from its second fund with the goal to invest in the Seed/Series A phase of around 25 companies that capitalize on the massive opportunity at the intersection of digitization and sustainability in Europe, focusing on the Benelux, DACH, and Nordics regions.

The European Investment Fund is part of the European Investment Bank Group (EIB). 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 which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

Invest-NL is the National Financing and Development Institution of the Netherlands. As a leading impact investor, its mission is to provide financing to companies and innovations that currently do not have sufficient access to existing financing options. Invest-NL works together with various stakeholders, including entrepreneurs, other financiers and investors, and development specialists from both the public and private sector. Together with its partners, Invest-NL’s objective is to accelerate the major social transitions that the Netherlands is facing in order to contribute to a sustainable and innovative Netherlands. Invest-NL focuses on the transition to a sustainable and circular economy, promoting affordable and accessible healthcare and stimulating technological innovations.

Oost NL is the development agency for the Eastern Netherlands, dedicated to supporting (international) businesses in establishing and expanding within the region. With expertise across key sectors, Oost NL provides confidential, tailored services, including connections to local networks, site selection, and knowledge sharing. The agency fosters regional growth by facilitating business development and investment, collaborating with partners to advance economic sustainability and innovation in the Netherlands.

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