These are the biggest valuation winners and strugglers in Sweden's impact sector 2024

2024 was a year of strong contrasts for the Swedish impact sector. While some companies saw their valuations soar, others struggled with falling valuations and liquidity problems.

Impact Loop’s analysis reveals two H&M-backed companies increased their valuations most steeply last year: textile recycling company Syre and second-hand e-commerce platform Sellpy.

It should be noted that Syre started from a low valuation base, having been officially founded just two years ago, which accounts for its dramatic percentage increase. The company raised around €90m (over a billion kronor) during 2024, backed by an impressive roster of investors including fashion giant H&M, venture capital firm Vargas, climate fund TPG Rise Climate, Giant Ventures, the IKEA-backed IMAS Foundation, Norrsken VC and Volvo Cars.

Sellpy's increased valuation comes after it raised additional capital in two rounds in 2024 that totaled more than €16m (just over 180 million kronor), primarily financed by H&M.

The company's latest available annual report for 2023 shows revenue of over a billion kronor, with an operating loss of more than €3m. Despite this, its post-money valuation has increased by around €65m since its last share issue in 2023.

Alongside textiles and circularity, heat pumps are another trend on the list.  Two heat pump companies saw their valuations soar: Aira and Qvantum, reflecting a growing demand in energy-based technologies across Europe.

Here is Impact Loop's list of the impact companies with the steepest valuation increases after fundraising in 2024:

The impact companies with the steepest valuation drops

While some energy companies saw their valuations soar in 2024, this sector also experienced some of the heaviest losses. Energy storage firms Polarium and Echandia, along with solar cell manufacturer Exeger Operations, all feature among those seeing the steepest valuation declines.

Polarium raised more than €40m (500 million kronor) in an emergency funding round last year after facing a liquidity crisis, according to Swedish business news site Di. It’s valuation decreased by around €220m (2.5 billion kronor) between September 2023 and October 2024.

Magnus Lundin, investment manager at EIT InnoEnergy – a major EU investor in clean energy innovation and climate tech – dismisses suggestions that the energy companies' falling valuations stem from sector overheating.

"We are still quite far behind the EU's climate goals for battery storage, charging infrastructure, and green hydrogen production. But it's one thing what's needed and what's a good investment and what customers are looking for," Lundin tells Impact Loop.

He argues that value drops stem largely from company-specific challenges. Some firms have failed to prove their technology or secure customers, while others have struggled to attract financing due to a shortage of long-term investors.

Despite the enormous investment needed in climate technology and energy transition in order for the EU to meet its 2030 climate targets, there remains a significant shortage of growth capital for climate tech companies, adds Lundin.

A key challenge for many environmental technology and energy companies, he explains, is the need to develop costly technologies and build new production facilities, while facing lengthy periods before generating revenue to offset these investments.

This extended timeline, Lundin notes, makes it particularly difficult to find patient investors willing to support climate technology companies through their development phase.

"Here, however, we see increased understanding for offtake, meaning agreements for future sales, as part of market validation," says Lundin.

"I think we should be proud in Sweden of all the technological development and entrepreneurship that exists around these future industries. It's natural that everyone has to struggle – some won't succeed but some will become very important, both for the environmental effect but also for Sweden's prosperity and job creation," says Lundin.