The €65M question: Where Swedish climate VC Course Corrected is pouring its cash

Course Corrected's new fund has attracted several heavyweight investors. Alongside the European Investment Fund—part of the European Investment Bank and a key backer of European startups and VCs—investors include Saminvest, a Swedish state-owned investment firm supporting venture capital, and SEB Pension & Insurance, one of Sweden’s largest pension providers.

“It’s great to see the market recognising climate as an attractive investment space and that these top-tier institutions want to come in and back us. This will absolutely strengthen us and our ambition to keep growing,” Christine Ahlstrand, one of the three co-founders of Course Corrected VC tells Impact Loop.

Where are the biggest problems?

Course Corrected was founded in 2021 by Ahlstrand, alongside Katja Bergman, and Kerstin Cooley, all seasoned investors with backgrounds in tech and sustainability. Their first fund, backed primarily by a single investor, raised 300m SEK (€27m) and has since invested in 16 companies across various sectors. Among them are the stealth-mode battery startup Holyvolt, which Impact Loop has previously written about, the maritime energy firm Echandia, and Petgood, which produces insect-based pet food.

The goal was to launch a second fund quickly, with a broader investor base and more capital—something they’ve now delivered on. Their second fund, which closed its first round in late December, currently sits at €65 million. However, they plan to continue raising capital throughout the year, aiming to surpass €90 million in total.

The investment focus remains consistent with their first fund, structured around five core themes: sustainable food systems, electrification and energy efficiency, industrial processes and alternative materials, circular systems, and climate transparency and regulatory compliance. Depending on how these ecosystems evolve, the fund’s focus will shift accordingly.

"In a way, it’s simple—we’re problem-driven. Where are the biggest problems? The challenge is identifying the new innovations and technologies that can solve them," says Christine Ahlstrand.

As for what a dream startup pitch would be, she replies: "A dream company is one that offers a solution or product that is commercially superior to existing alternatives—both in terms of cost and efficiency—while also having a clear positive impact in the form of reduced greenhouse gas emissions."

Software, hardware and impact

Like its predecessor, the new fund will invest across software, hardware, and hybrid models, aiming to build a portfolio of 20–30 companies with a mix of impact timelines. This isn’t just about software versus hardware but also about how quickly different companies can deliver real-world impact.

"Some companies develop in a more linear way, while others need a few years before their product reaches the market—but once it does, it can drive significant impact," adds Kerstin Cooley.

That said, there are a few tweaks from the first fund. Investment sizes are set to increase slightly, ranging from €450,000 to €2.25m. Meanwhile, the fund’s geographic focus is narrowing—from a global mandate to a European one, with a particular emphasis on the Nordics.

Research-backed strategy to get ahead

Course Corrected works with a climate advisory board consisting of leading researchers in the field. With the second fund, this board is expanding.

The original board was made up of Måns Nilsson, executive director of the Stockholm Environment Institute (SEI), a globally recognised think tank focused on environmental policy, and Beatrice Krona, a researcher at the Stockholm Resilience Centre, a leading institute studying planetary boundaries and sustainability science. Now, they’re joined by Thomas Kåberger, a professor at Chalmers University of Technology in west Sweden and a veteran in the energy sector, known for his work in renewable energy policy and industrial decarbonisation.

"The climate board is a fundamental part of our strategy for identifying where we can make the biggest impact. Their insights, built on entire careers in climate research, help guide our focus. We have regular check-ins to ensure we stay ahead of the curve," says Christine Ahlstrand.

There will always be shifting winds

Despite global uncertainty—with the US and even major corporations backtracking on their climate commitments—Course Corrected's confidence in the green transition remains strong.

Kerstin Cooley acknowledges that the past 18 months have been challenging for the capital market, particularly for smaller companies, but notes that the number of climate-focused funds has grown significantly since they started.

"There will always be shifting winds in different directions. That’s something you have to factor in, but we see the green transition as a strong, structural megatrend," she says.