EIF Joins Forces with Women-Led Blume Equity to Fuel European Climate Tech Advancements

By: WE Staff | Friday, 22 September 2023

To encourage climate tech investments, the European Investment Fund (EIF) has announced a €40 million investment in Blume Equity, a venture capital firm located in London.

Blume Equity, created by three women in 2020, invests in European high-growth climate innovation scaleups, with a focus on decarbonization and broader environmental sustainability operations.

Blume Equity's portfolio is diverse, with investments in companies such as Normative, a carbon accounting platform; Elvie, a sustainable femtech business; Matsmart Motatos, a food waste management company; and Sensorfact, an IoT industrial SME data help provider.

The EIF's €40 million investment is part of the InvestEU project, which corresponds with the EIF's goal of supporting innovative SMEs throughout Europe. The Dutch Future Fund has also provided a regional mission. EIF joins other major Blume Equity investors, including the Swedish pension fund AP4 and the Visa Foundation.

Clare Murray, one of Blume Equity's co-founders and partners, stressed the importance of this relationship, stating that it assists businesses in dealing with the climate problem.

This revelation comes as the rate of climate innovation investment has varied, due in part to the shortness of climate-related disasters like wildfires and floods.

Recent data, on the other hand, show a surge in venture capital investment in climate innovation over the previous decade, stressing the need of varied financing sources such as government agencies and pension funds.

HSBC has made a big contribution to the climate tech industry, promising $1 billion in financing for global climate tech firms.

These funding will be directed by the bank towards EV charging, battery storage, carbon removal technologies, and sustainable food and agriculture, addressing the pressing need to cut carbon emissions in these areas.

In addition, HSBC announced a climate-tech venture capital strategy, as well as a $100 million contribution to Breakthrough Energy Catalyst, a platform that supports sustainable energy sources.

EIF CEO Marjut Falkstedt stressed the significance of innovation and technology in hastening the green transition and tackling current climate and environmental challenges.

These investments show an increasing commitment to aiding innovative enterprises with a positive environmental impact.