The Hague-based 4impact Capital closes second fund at €68M; will focus on these areas

The Hague-based 4impact Capital, a venture capital firm, announced on Thursday that it has closed its second fund (Fund II) at €68M supported by the European Investment Fund (EIF) and Invest-NL.

Out of the total, EIF invested €17.5M in the fund, while €7.5M comes from Invest-NL, of which €5M has already been committed in 2023.

The investment by EIF and Invest-NL is part of the Dutch Future Fund II, in which they both participate as partners.

“Europe has a shortage of innovation finance, which means we need to do everything we can to support innovative small businesses so they can stay and grow in Europe,” says Marjut Falkstedt, CEO of the European Investment Fund.

“4impact capital’s mission to strengthen start-ups with transformative potential aligns with the EIF’s objective to support innovation with social and environmental added value. Funds like these can have a significant impact on Europe’s sustainable future,” adds Falkstedt.

Fund utilisation

The 4impact capital fund aims to invest in approximately 25 innovative software companies, mainly in climate technology, and partly in companies focused on inclusion, health, and wellbeing.

The fund aims to make at least 20 per cent of its investments in the Netherlands but focuses more broadly on the Benelux, DACH, and Nordic regions.

Since its first closing in 2023, Fund II has backed six transformative companies.

Notable examples include — Coolgradient, Deftpower, and Carbonfuture.

4impact Capital: Supporting entrepreneurs driving positive change

Pauline Wink and Ali Najafbagy founded 4impact Capital in 2019. 

The VC’s core strategy focuses on the combination of scalable software solutions for the planet and people with strong financial returns. 

The Dutch VC aims to invest in exceptional entrepreneurs in the Seed to Series A phase, primarily across Europe, primarily on the BeNeLux, the Nordics, and the German-speaking region. 

The firm also aims to support founders through its extensive network, knowledge, and experience.

“We are a complementary and diverse team committed to working closely with our portfolio companies. We don’t just invest – we partner with them, providing the support they need to fuel their growth and success. What drives us is the opportunity to catalyse positive change, and we look forward to helping build the companies of the future,” adds Pauline Wink, Founding Partner of 4impact.

Invest-NL: Impact investment firm

Invest-NL is an impact investment firm focused on driving sustainability and innovation in the Netherlands.

The firm finances visionary entrepreneurs and projects that contribute to the future economy, aiming for both impact and financial returns. 

The firm takes responsible risks, leverages European funds, and works collaboratively to make ambitious projects feasible. 

The firm’s long-term approach emphasises societal and environmental benefits, supporting entrepreneurs and technologies that will shape the Netherlands by 2050.

Jellie Banga, Member of the Board of Directors of Invest-NL, says, “Invest-NL’s additional investment in 4impact, as part of the Dutch Future Fund initiative, highlights our strong partnership with the EIF. Our joint contribution resulted in a successful closing, making more capital available to support impactful companies.”