Nordic government LPs bet on deep tech for impact

Impact will be measured across four primary dimensions: society, knowledge, health and environment.

Saminvest and Tesi, two state-backed private equity investors from Sweden and Finland respectively, have committed capital to a Nordics-focused deep tech venture capital firm.

Butterfly Ventures has raised €47 million towards a target fund size of €100 million to “make investments that matter in the world”, said Juho Risku, co-founder and partner of the firm in a statement.

The fund, which is the firm’s fourth, will be classified as Article 8 under the EU Sustainable Finance Disclosure Regime, although the way the firm has set up in terms of impact measurement and reporting, said partner Tanya Horowitz, would “qualify well within even stricter Article 9 standards”, in an email to New Private Markets.

The fund will make seed investments, but has “significant capacity” for further investments in the A and B rounds. “The impact of the operations and product development of the investee companies is measured on four primary dimensions, which are society, knowledge, health and environment,” according to the firm. Butterfly Ventures was established in 2012, has made 84 investments and invests across the Nordic and Baltic countries.

Second and third closings are scheduled for later this year, with the final close slated for spring 2023.