EIF Commits €40 Million to Women-Led Blume Equity, Bolstering European Climate Tech Startups

The European Investment Fund (EIF) has announced a €40 million investment in Blume Equity, a venture capital firm based in London to boost climate tech investments.

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

Blume Equity's portfolio is diversified, with investments in firms such as Normative, a carbon accounting platform; Elvie, a sustainable femtech startup; Matsmart Motatos, which combats food waste; and Sensorfact, an IoT industrial SME data assistance supplier.

The EIF's €40 million investment is part of the InvestEU programme, which aligns with the EIF's aim to foster innovative SMEs across Europe. A regional mandate from the Dutch Future Fund is also included. EIF joins other significant Blume Equity investors such as Swedish pension fund AP4 and the Visa Foundation.

Clare Murray, one of Blume Equity's co-founders and partners, emphasised the significance of this collaboration, saying that it helps businesses confront the climate crisis.

This news comes as the pace of climate innovation investment has fluctuated, owing in part to the brevity of climate-related calamities such as wildfires and floods.

Recent data, however, indicates a spike in VC investment in climate innovation over the last decade, emphasising the need for diverse financing sources, such as government agencies and pension funds.

HSBC also contributed significantly to the climate tech industry, pledging $1 billion in investment for global climate tech businesses.

The bank intends to direct these funds towards EV charging, battery storage, carbon removal technologies, and sustainable food and agriculture, addressing the critical need to reduce carbon emissions in these sectors.

HSBC also announced a climate-tech venture capital strategy and a $100 million commitment to Breakthrough Energy Catalyst, a platform that promotes greener energy sources.

The importance of innovation and technology in speeding the green transition and addressing current climate and environmental concerns was emphasised by EIF CEO Marjut Falkstedt.

These investments demonstrate a growing commitment to assisting innovative firms that have a beneficial environmental effect.