Greencode VC has raised €70 million – here's where they're looking to invest

Finland-based VC firm Greencode Ventures is focused on speeding up the green transition.

That means focusing on software technologies that can have an immediate impact today, rather than going for "moonshot” technologies that could take years – if not decades – to develop.

"That's how we measure impact – looking at what the companies can contribute within a shorter time frame," managing partner Ines Bergmann-Nolting says. "The numbers might then look smaller on paper than if you apply a 2050-and-beyond model, but we feel that it’s real and that what counts is producing real results already, today."

And the numbers aren’t that small, either.

Having launched in 2023, Greencode secured an initial €40 million investment round last year. Speaking to Impact Loop, Bermann-Nolting reveals that the venture capital firm has now raised over €70 million in total funding. The company expects to announce its final investment round in the first half of 2025.

Focus on 'digital first'

Greencode’s team of founders includes Kaisa Hietala, one of Finland’s leading business executives who is also on the board of directors at global giants like Exxon Mobile and mining company Rio Tinto.

While the fund is pan-European, it has a strong focus on the Nordic and DACH markets. Greencode’s portfolio includes companies like Supercritical, a digital marketplace for carbon removal, Repath, a climate risk and adaptation platform, and Southern Lights, which provides digital tools for developing green hydrogen projects.

In a wide-ranging interview, Bergmann-Nolting tells Impact Loop about the VC’s philosophy for nurturing founders and what types of investments the firm is looking for next.

Greencode has a 'digital-first' focus on driving the green transition. Why is that?

"We wanted to build a fund that can generate an impact during the fund’s lifetime. So while we definitely need moonshot technologies and moonshot solutions, we found that those are not in line with the period where we need to invest. The gap is already widening for meeting the Paris goals, so for us it’s important to find those solutions that may not be a game changer on their own but that can help start solving the problem. That's why we decided to focus on software solutions, because they are very scalable and fast."

With co-founder Kaisa Hietala sitting on the board at Exxon and Rio Tinto, how does her experience from those roles help Greencode identify possible investments or trends?

"Her role on those companies is totally separate from her operational role at Greencode, but we definitely benefit from the global perspective she brings and her insight into where certain market trends are moving in these industries, and other geopolitical factors. It helps us see patterns and certain trends across larger industries, where Kaisa’s perspective is super helpful.

Aside from that, she is someone who has been transformational herself in the corporate world and when she speaks to founders they are always so impressed that she brings this very broad and forward-looking perspective, but can also go into the technical details and understand the business. Not many funds have somebody like Kaisa."

As a female-led VC, you’ve been open about the desire to address the shortage of female founders in climate tech. How can you go about doing that?

"We are not a fund that is focusing solely on supporting female founders, but for us it’s something that should be – and is – a natural part of our selection criteria. We already have a higher-than-average share of female founders in our portfolio, and we can see that our own diverse setup within the fund makes us more attractive to those teams. Because they see in us a team that knows what it’s like to be in those industries and the challenges you face being different. Of course we apply the same criteria to all founders but we definitely want to encourage the best females and I think we can give good advice to them."

Are you seeing an increase in the number of women who are involved in founding startups?

"Yes, it's improving, a bit. I think in this younger generation we can definitely see that it's more common. But the ratios are not yet where they should be, and we still see differences across the different European markets. In my German home market, I definitely don't see the levels yet where I would like it to be. But it's a gradual process, and I think funds like ours will definitely contribute to those changes."

Several members of your leadership team are also former founders themselves. How does that help make you more attractive to companies looking for investments?

"Having the concrete experience of having lived through the startup phase means you also have those little stories that come with that, and the advice and emotion that you cannot pass on if you have not been in that situation. So I think that is definitely very appealing to many founders.

One of the principles we have built Greencode around is that we wanted to have a team with diverse backgrounds ourselves, so we could offer a 360-degree level of support.

One thing I always disliked about the venture industry is that some funds can have a very strong cowboy mentality, where it’s more about who discovered a deal and who is the deal owner, and less about coaching. With Greencode our portfolio companies don’t only have access to one person, others are available to help with certain topics when we need them."

Is there an easy way to describe the types of companies you are looking for at the moment?

"So far we have done mostly investments in the energy and mobility verticals, so we would like to expand in the industrial vertical this year. We are very interested in the intersection of AI and different industries, so this is something we will intensively look for this year. AI is a nice tool, but if we can use it to make greener and more efficient technologies that is an automatic win-win situation."

From a European perspective, how do you view the current geopolitical landscape when it comes to impact investing?

"In the times we are currently in, it’s of fundamental importance that we as Europeans intensify our collaboration and that we build out strong European companies. That is crucial for our individual national strength but also for Europe in general. If we want to drive the green transition and stay ahead of what we are facing from the U.S. and China. It’s key that we work together there and build across Europe, and not lose ourselves in the nitty-gritty. The objective is too big. But I also think the current opportunities there are really good if we work together to build strong European champions."