EIF invests in innovative Finnish “green” fund

EIF has committed EUR 25m in Power Fund III, a Cleantech venture capital fund based in Finland.  The investment strategy of this early stage fund is focussed on a specialised sub-sector within the Cleantech value chain, electrical systems, and targets highly innovative start-up companies which develop ground-breaking technologies by using natural resources such as wind, sun, water and biomass. Power Fund’s management team comprises seasoned engineers and venture capitalists with proven professional experience and track record confirmed by the success of previous funds they have raised.

By participating in the Fund, EIF supports the establishment and development of the underserved European early stage Cleantech sector and backs an emerging and reputable team in the field. Through this investment EIF also fulfils its community objectives in support of the Europe 2020 "Innovation Union" and "Resource Efficiency" flagships.

Power Fund III held its final closing at EUR 77m, including commitments from the ERP-EIF Facility - a co-investment from the German Federal Ministry of Economics and Technology and EIF - and the Competitiveness and Innovation Framework Programme managed by EIF on behalf of the European Commission. Both facilities aim to help SMEs in their early stages of development and play a crucial role in enabling start-ups to access equity finance.

• Joëlle Harvey, EIF Communications, j.harvey@eif.org