Impact Investments Soar in Europe, Driven by Tech and Energy
Impact investments are gaining traction, with technological advancements and regulatory challenges shaping the landscape. A recent report by Norrsken VC reveals a positive outlook, with 60% of respondents bullish on European impact companies.
Technological progress is the primary driver of impact investments, with over half of respondents (52.4%) highlighting its significance. Meanwhile, regulatory fragmentation affects founders in sectors like robotics, security, health, energy, fashion, and finance.
Regulations between EU member states pose a barrier to growth, with 50% of impact founders citing this as a hurdle. Despite this, energy and electrification is the most attractive sector for investors, including limited partnerships, venture capitalists, and family offices.
Notably, companies from the US and Europe, such as Bloom Energy, Solaredge Technologies, Nordex, NextEra Energy, and Clean Energy Technologies, have made substantial investments in high energy-efficiency technologies, driving gains and advancing renewable energy infrastructure.
Both founders and investors express confidence, with only 6% expecting to reduce impact investments. A majority (75%) plan to increase allocations in the next five years. Sweden tops the list as the most attractive country for impact, followed by Germany and the UK for investors, and Spain and the Netherlands for founders.
The impact investment scene in Europe is vibrant, driven by tech advancements and regulatory challenges. Despite hurdles, confidence is high, with investors and founders alike planning to increase allocations, particularly in the energy sector. Sweden leads as the most attractive country for impact, followed by other European nations.
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