The Finnish Climate Fund supports low-carbon industry and promotes digitalization
January 11, 2021
December 21, 2020 was the first day for The Finnish Climate Fund to operate (previously Vake - The Finnish State Development Company). The Fund brings new funding opportunities for scale-ups focusing on combating climate change and promoting digitalization.
The Climate Fund focuses on combating climate change, boosting low-carbon industry and promoting digitalization. Its deal-flow work is divided into four investment categories: Industrial scale-ups, Public-private-partnerships, Public platforms and Special funds.
The Fund is not for startups but for scale-ups, with often capex (capital expenditure) intensive growth plan, or for public-private-partnerships (if only public funding, then it’s a public platform accelerating commercial activities in ecosystems), special funds to support the creation of new kinds of fund products that concentrate on digital and climate investments.
Approximately 65% of the Fund’s investments must relate to climate change and about 35% to digitalisation. The investment criteria consists of 1) preconditions, 2) Climate fund impact criteria and 3) Investment proposal specific analysis. Check the website www.climatefund.fi for further information about the criteria and the fund.
Climate Fund as a part of the state innovation funding
”FiBAN angels are a powerful network covering the whole country. Angels are involved in many types of business development activities in their regions and internationally and it’s very important that they know what is the role of the Finnish Climate Fund as a part of the state’s innovation funding ecosystem. Even if the Climate Fund’s focus is more in scale-ups than start-ups, angels play a crucial role when building Nordic ecosystems and sharing knowledge.“, says Pia Erkinheimo, a FiBAN angel for many years, and the Finnish Climate Fund director for new inbound leads from the private sector.
The role of the Climate Fund as part of the field of state-owned innovation financiers is to act in a particularly scaling role between Business Finland and Tesi. Business Finland is a public actor that offers funding for innovations and internationalisation and promotes travel and investments to Finland. Tesi is a state-owned investment company that invests in private equity funds and makes direct market-based investments in growth companies together with private investors. Finnvera funds the founding, growth and internationalisation of SMEs and exports of large companies with various loan and guarantee instruments.
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