Helsinki-based early-stage investor Nordic Foodtech VC has announced the first close of its second fund at €40 million, with a final target of €80 million.
The fund, focused on deeptech solutions in food and agriculture, aims to back startups that address the systemic inefficiencies and environmental impact of global food systems.
The second fund builds on the strategy of the firm’s first €42 million fund, launched in 2020. This latest raise continues Nordic Foodtech VC’s approach of sourcing startups from universities and research institutions across the Nordics and Baltics in particular.
The first close is backed by a mix of institutional investors and industry stakeholders, including Finnish state-owned investment company Tesi, Elo Mutual Pension Insurance Company, the Valio Pension Fund, and foodservice firm Heino Group.
“Being able to raise funds in the current complex market is not an easy feat. However, it’s clear to us and our investors that the current global food system is largely inefficient and not adequate to meet the needs of the planet or its people,” said Louise Heiberg, Partner at Nordic Foodtech VC. “As a specialist investor, we’re here to back the startups turning breakthrough science and solutions into real-world food system impact and solid returns.”
Nordic Foodtech VC targets startups at pre-seed and seed stages with ticket sizes ranging from a few hundred thousand euros to €2 million, with additional capital reserved for follow-on investments. The fund plans to continue leading early-stage rounds in the Nordics and Baltics and co-invest across Europe.
While venture capital funding into agrifoodtech has dipped globally (2024 saw a continued slowdown in climate and sustainability tech investment) Nordic Foodtech VC argues that the structural drivers behind food system transformation remain strong.
“New technologies contribute significantly to sustainable food production. Nordic Foodtech VC is a unique player in the food tech sector in the Nordics with excellent prospects for growth,” said Peter Platan, Investment Director at Tesi. “The team has strong expertise both in research and in the commercialisation of innovations.”
Companies it has invested in range from affordable protein alternatives and functional fats, to recycling waste into fertilisers and improving environmental intelligence via satellite data.
“We invest in planet-sized business opportunities in bite-sized chunks,” said Lauri Reuter, Partner at Nordic Foodtech VC. “We are excited to continue supporting both existing and new portfolio companies in their growth paths that all together build towards a food system that fits in the planetary boundaries.”
