Skype founder Zennström: 'Impact' is about European security, not just climate

Skype co-founder Niklas Zennström is calling for a mindset shift that could redefine how Europe’s venture ecosystem understands “impact.”

Zennström, who is also the founding partner of venture capital firm Atomico, writes in a LinkedIn post that the term “impact investing” has become too focused on a niche set of sustainability metrics — and no longer reflects the scale of the challenge or opportunity facing the Europe.

“In this tense, volatile geopolitical landscape we can no longer constrain our definition of impact investing by the limits of a narrow subset,” Zennström writes. “Yes, it’s still about climate, health, and sustainable solutions. But it’s also about something broader: investing in Europe’s ability to operate on its own terms. Our security, our energy systems, our healthcare, our food supply, our digital infrastructure.”

"All investing is impact investing"

Zennström says he came the conclusion after a recent visit to Amsterdam, the city where he launched his first company 25 years ago.

“When I started out, the idea of investing with purpose barely existed. Now almost all investing is impact investing,” he writes.

Zennström’s comments echo those of some other impact investors who are saying that technological innovations are the key to making Europe more self-reliant.

World Fund Principal Nadine Geiser told Impact Loop in a recent interview that Europe faces a “now or never moment” when it comes to developing the climate tech that can make the continent more resilient.

"We have the momentum"

And just like World Fund and other VCs Impact Loop has talked to, Zennström is calling for a coordinated Europe-wide effort to tackle the issue.

“Change is needed and it won’t be achieved through subscale niche funds or fragmented national agendas. It only happens at European scale. And we now have the momentum to do it,” he writes. “For the first time, EU and national policymakers, venture investors, and founders are pointing in the same direction. Behind closed doors there is a shared understanding that we need to support sovereign innovation and strategic infrastructure with serious capital, long-term thinking, and global ambition. But we need to do more to make sure this translates from conversation into action. … I would urge policymakers, investors and founders not to be bound to the old definition of impact. Let’s fund the companies that will allow us to shape Europe’s future in our own vision.”