Nordic bank aims to direct up to SEK1 billion to early stage ‘greentech’ firms.
Nordic bank SEB has formed a new unit to invest venture capital in green technology to contribute to a sustainable transition.
SEB Greentech will invest in Nordic companies that develop solutions to improve the use of natural resources and reduce negative ecological impacts. Potential investments include renewable energy, energy storage, water and agricultural technology, circular business models and waste management. The unit will launch with SEK100 million (€29 million) in investment capital, with an ambition to rise to SEK1 billion (€96 million) over time.
According to SEB, the initiative responds a shortage of venture capital in the green technology sector due to the longer time typically to develop and mature than traditional venture-capital investments.
SEB CEO Johan Torgeby said: “This is an expression of our ambition to contribute to a sustainable transition. It is critical that young greentech companies gain access to funding at an early stage so they can realise the creation of technologies, products and services that can benefit society, our customers and shareholders.”
SEB Greentech will be headed by Markus Hökfelt, currently a fund manager for Almi Invest’s GreenTech fund, on 1 November. Investment and exit decisions will be made by a newly formed Greentech Investment Committee. The unit will also appoint an external advisory board with experience within green technology. SEB Greentech will be a sister organisation of SEB Venture Capital, which invests venture capital in the fintech sector.