Nordic Foodtech VC secures US$43 million first close for second fund aimed at food system innovation

Nordic Foodtech VC has announced the first close of its second fund at €40 million (US$43 million), with a final goal of raising €80 million (US$86 million), reinforcing its commitment to investing in technologies that make global food and agriculture more resilient and sustainable.

The Helsinki-based firm, which backs early-stage startups tackling critical food system challenges, is continuing its strategy of partnering with universities and research institutions to turn scientific discoveries into viable industrial applications. The new fund has attracted support from institutional investors including Tesi (Finnish Industry Investment Ltd) and Elo Mutual Pension Insurance Company, as well as food industry stakeholders such as Valio Pension Fund and Heino Group.

“Being able to raise funds in the current complex market is not an easy feat,” said Louise Heiberg, Partner at Nordic Foodtech VC. “However, it’s clear to us and our investors that the current global food system is largely inefficient and not adequate to meet the needs of the planet or its people.”

Nordic Foodtech VC’s first fund backed 18 startups across the Nordic and Baltic regions, including Finland’s Enifer and Kuva Space, Denmark’s Chromologics and Evodia, Estonia’s ÄIO, and Sweden’s Melt&Marble and Ironic Biotech. These companies are working on a wide array of scientific and technological challenges, ranging from producing alternative proteins and functional fats to recycling waste streams and capturing nutrients from wastewater.

Despite the broader decline in venture capital investment across the food tech sector, Nordic Foodtech VC is betting on the long-term importance of the space. According to the firm, demand for improved food security, nutrition, and sustainable production remains high. Its focus continues to be on startups solving immediate business-critical problems with scalable technologies.

“Food security, health and nutrition, and sustainable food systems will be catalysts for this sector,” said Heiberg. “As a specialist investor, we’re here to back the startups turning breakthrough science and solutions into real-world food system impact and solid returns.”

The new fund will prioritize early seed and pre-seed investments, with initial ticket sizes ranging from a few hundred thousand euros to €2 million (US$2.15 million), and reserves for follow-on rounds. While the focus remains firmly on the Nordics and Baltics, the fund is also open to co-investing elsewhere in Europe.

Peter Platan, Investment Director at Tesi, said the firm's strategy aligns closely with Finland's innovation goals: “New technologies contribute significantly to sustainable food production. Nordic Foodtech VC is a unique player in the food tech sector in the Nordics with excellent prospects for growth. The team has strong expertise both in research, and in the commercialization of innovations.”

The firm is positioning itself as a key partner for universities and research institutes that often struggle to access early-stage risk capital. By helping these institutions spin out new ventures, Nordic Foodtech VC aims to bridge a crucial funding gap.

“We invest in planet-sized business opportunities in bite-sized chunks,” said Lauri Reuter, another Partner at Nordic Foodtech VC. “With our whole team’s experience and expertise in investing in this sector, we are able to spot early on the startups that are solving tangible enough problems to generate good returns within a fund cycle.”

With the first close of the second fund, Nordic Foodtech VC has now doubled its total capital under management. Fundraising efforts will continue as the firm moves toward its €80 million target.

(Main photo courtesy of Wasim al-Nasser)