Nefco, the Nordic Green Bank is owned by the five Nordic countries, and a long since-partner to Sweden Sustaintech Venture Day. How is the Nordic sustaintech financing sector doing since last year? We asked Fredrik Larsson, Nefco’s Senior Investment Adviser in Sweden:

“Sweden has a great innovation space, but is not always the best at international scaling. We all know that there is a ”missing middle” in sustaintech financing and that is the space where Nefco operates, where a great idea and technical innovation goes commercial,” says Fredrik Larsson.

Nefco’s green criteria are stringent to assure that it finances the very best environmental and climate solutions. Nefco has been in the impact investing scene for over 30 years, thus its criteria to analyse environmental impact may serve as a great benchmark for companies as well as for other investors.

“We are actively looking to expand our investment portfolio with great, innovative Swedish sustaintech companies. Our task is to accelerate the green transition and our role is to take a higher financial risk than commercial banks in the SMEs’ internationalization stages. The past year has been a struggle for many, and we do realize the challenge when factories are standing still, expansion is impossible because of capacity problems and investors mildly interested,” says Fredrik Larsson.

Yet the green transition has to be made, and is more than ever on the political agenda. This requires industrial hard-ware and patient investors during the scale-up phase, and the market is now well aware of the fact that industrial build-up does not follow the tech hockey-stick model.

“If there is a clear green upside and a sound business model we are a sound option for companies scaling internationally. We have been doing this for long, and we do have the right patience and skill to be a sustainable partner to a scale-up in the green transition,” says Fredrik.

Nefco offers smaller, standardised fast-track loan for early expansion, while loans for international scaling are offered for up to EUR 5 million on market terms. For businesses considering new market entry there is also financial support for feasibility studies. For scale-up businesses Nefco offers both suitable loans and equity.