4impact Capital, a venture capital firm based in the Netherlands, has closed its second fund, 4impact Fund II, securing €68 million. The fund, classified under the SFDR Article 9 designation, is dedicated to investing in early-stage ventures that prioritize digital innovation and sustainability across north-western Europe. Fund II aims to back startups that tackle global challenges through scalable solutions while also delivering robust financial returns.

A Vision for Sustainable and Impactful Investment

Founded in 2019, 4impact Capital launched its first fund with a mission to accelerate the transition to a sustainable global economy. This latest fund marks a continuation of that mission, emphasizing impact-driven technology and sustainable innovation as core pillars. The firm’s approach combines rapid technological advancements with a strong commitment to creating measurable, positive environmental and social impacts alongside financial success. The team at 4impact includes experts with backgrounds at Goldman Sachs, Mubadala, Citi, Hayfin, Redkiwi, and Future Fit Foundation. They are further supported by seven venture partners based in Europe and the United States, who bring extensive experience in building successful businesses and fostering impact-driven cultures.

Backing Transformative Ventures Across Europe

Since Fund II’s initial closing last year, 4impact Capital has already made six significant investments, supporting companies focused on making a tangible difference in fields critical to sustainability. Among these ventures are Coolgradient, a company focused on reducing energy and water usage in data centers; Deftpower, which harnesses EV batteries to help balance power grids; and Carbonfuture, a pioneering provider of durable carbon removal credits, which recently closed a successful Series A round led by Six, the Swiss Stock Exchange.

Pauline Wink, 4impact’s founding partner, highlights the collaborative approach the firm takes with its portfolio companies, noting that the team goes beyond financial investment to work closely with founders. "We don’t just invest—we partner with them, providing the support needed to fuel their growth and success. What drives us is the opportunity to catalyze positive change, and we are excited to help shape the businesses of the future,” said Wink.

Co-founding partner Ali Najafbagy emphasized the fund’s focus on technology and sustainability, particularly in the realms of AI, big data, remote sensing, and emerging blockchain technologies. He described these technologies as essential tools in addressing some of Europe’s pressing challenges, from labor shortages to sustainability, saying, “Through digital technologies, we can help solve parts of labor shortages and contribute to a sustainable and competitive Europe and beyond.”

Supported by Industry and Institutional Investors

The successful fundraising effort for Fund II was driven by the support of various industry leaders, including founders and institutional investors committed to sustainable finance. Notable investors include the European Investment Fund (EIF), Invest-NL, Oost NL, and the Netherlands Enterprise Agency (RVO). Their involvement highlights the confidence in 4impact Capital’s ability to address critical funding needs for impact-driven businesses.

Marjut Falkstedt, Chief Executive of the EIF, shared the organization’s commitment to bridging Europe’s innovation financing gap and supporting local businesses with global potential. “In tackling the innovation financing gap, we have to do all we can to support innovative small businesses, so that they can both start-up in Europe but also stay and grow in Europe. 4impact capital’s mission to empower startups with transformative potential aligns with this EIF objective to support innovation while generating social and environmental value,” said Falkstedt.

Jellie Banga, a member of Invest-NL’s executive board, also emphasized the importance of partnerships in this venture, noting, "Invest-NL’s additional investment in 4impact, as part of the Dutch Future Fund initiative, highlights our strong partnership with the EIF. Our combined ticket resulted in a successful final closing, providing increased capital to support impactful ventures." This joint investment underscores a shared dedication to fostering sustainable growth and entrepreneurship in the Netherlands and across Europe.

Leveraging Technology to Create a Sustainable Future

With Fund II’s resources and the expertise of its venture partners—whose backgrounds include companies like Tesla, Apple, and Dept—4impact Capital is entering a new phase aimed at driving impactful innovation. Victor Straatman, a partner at 4impact, expressed his enthusiasm for the potential of digital technologies to support sustainable goals, especially as artificial intelligence (AI) and other emerging fields expand rapidly. He noted the firm’s commitment to harnessing AI responsibly to advance sustainability, suggesting that predictive analytics and similar tools can help reduce emissions and improve resource management.

“The acceleration of AI presents not just opportunities, but responsibilities. How can we leverage AI for good? Using predictive analytics to reduce emissions and foster a more sustainable society is a priority for us. The time to act is now, and we’re here to support those bold enough to take on this challenge,” said Straatman.

A Broader Mission for European Innovation and Sustainability

As an impact-focused venture capital firm, 4impact Capital aims to support early-stage startups aligned with the Sustainable Development Goals (SDGs), with a particular focus on areas that contribute to the welfare of the planet and people. By investing in companies at the intersection of digital innovation and sustainability, 4impact is well-positioned to foster a new generation of enterprises that are both financially viable and socially responsible. The firm’s investments target the Seed and Series A stages, and its geographical focus spans the Benelux, DACH, and Nordic regions, where sustainable technology is increasingly prioritized.

With €68 million secured for its second fund, 4impact Capital is poised to make a lasting impact on Europe’s startup landscape. Backed by prominent industry leaders and institutional supporters, 4impact Fund II underscores the growing importance of sustainable investing in the digital age. Through its investments, the firm is empowering entrepreneurs who aim to address global challenges, harnessing technology to drive change while enhancing Europe’s competitive edge in innovation and sustainability. As demand for responsible technology solutions increases, 4impact Capital’s mission stands as a vital pillar in supporting Europe’s transition toward a sustainable and resilient future.