Dutch-based FourOneFour raises funds from ROM Utrecht Region to focus on sustainable finance regulation

Utrecht-based FourOneFour, a platform that offers a compliance solution for the EU taxonomy regulation and SFDR for private markets (PE and VC funds), announced that it has raised fresh funding from ROM Utrecht Region.

ROM is a social investor that increases access to capital for innovative companies in the Utrecht region. It makes investments in the three key transitional industries – digital, health, and sustainability, all of which are crucial to the future of the economy.

ROM collaborates with both inside and outside the area to make the funding for these businesses a reality. ROM has two funds – the Healthy Urban Living Proof Of Concept (HUL POC) Fund and the Participation Fund.

The HUL POC fund was made possible in part by co-financing from the Province of Utrecht and the European Fund for Regional Development (ERDF). 

The investment in FourOneFour comes from the HUL POC Fund.

FourOneFour: Everything you need to know

Founded in 2021 by Rutger Hofste, the Dutch startup’s platform helps the financial market gain insight into its sustainability impact, and have a clear picture of where improvements can be made.

In 2021, the EU implemented the Sustainable Finance Disclosure Regulation (SFDR), a complex set of laws for disclosing ESG (Environmental, Social, and Governance) impact.

SFDR rules must be followed, and many PE and VC funds are obliged to structurally disclose their sustainability effect. The aim of the legislation is to uphold the Paris Climate Agreement, while ensuring a cleaner Europe with a CO2-neutral economy in 2050.

FourOneFour claims to have translated a number of complex EU regulations on its platform. 

The insight provided is processed into a report that complies with European regulations. 

Additionally, the company also provides funds and portfolio companies with insight into their ESG footprint as well as possible ESG strategies.

Capital utilisation

FourOneFour says it will use the funds to improve its offering, grow its clientele, and get ready for the CSRD (Corporate Sustainability Reporting Directive), an EU law that will become a mandate for medium-sized and large businesses in 2024. .

Founder Rutger Hofste, says, “With this investment, we will expand the platform so that both the investment funds and portfolio companies can use the latest EU sustainability regulations in their reporting and strategy. Non-financial data is critical in any future-proof business.”