Fredrik Larsson promotes loan financing for international scaling. Nefco, the Nordic Green Bank is owned by the five Nordic countries, and a long since-partner to Sweden Sustaintech Venture Day. We asked Fredrik Larsson, Nefco’s Senior Investment Adviser in Sweden, how is the Nordic Sustaintech financing sector doing 2025?
With less capital in the space, the healthiest business ideas are surviving and attracting capital, and there are less investments into businesses that rely predominantly on sustainable values. Companies are starting to show a track record of sales and real business. Investors remaining in the space are considerably more aware of the patience needed for the longer technical development cycles and industrial build-up periods that in this space can reach a ten-year-period.
“We’re all aware of the patience required from Sustaintech investors, and the challenge of the ‘missing middle’ in financing, where a long wait for sustainable growth is often necessary – and sometimes even desirable – after a great idea and technical innovation has been commercialised,” says Fredrik Larsson.
What types of cases are you most commonly encountering in this environment?
Proposals keep coming in but are today more specific in terms of more narrow ventures or deployments. Some areas where the market has really matured is for example development of smart and efficient electric grids. Another growing area where Sweden traditionally has been very strong is sustainable materials. We also see some well functioning circular solutions making its way to the market.
Innovation and rebuilding of Ukraine is another area where Nefco is very active. ”We have been active in Ukraine for 20 years since we were a part of the rebuilding projects in Eastern Europe and are financing public projects focusing on a green recovery for Ukraine”.
”During times of conflict and international turmoil, one of the advantages is increased resilience and innovation on part of the companies. We also see more in depth risk simulations into the scale-up prognosis on a larger scale” says Fredrik Larsson.
”I believe that innovation in the field is increasingly about how to build and scale your company rather than relying on investors to drive growth, which I consider a healthier approach” says Fredrik Larsson.
How can you assist a scale-up in Sustaintech?
Nefco’s green criteria are tough and they have been even tougher the past years. Nefco has been in the impact investing scene for over 30 years which iswhy its criteria to analyse environmental impact may be very useful for companies as well as for other investors. At Nefco we can take a higher financial risk when commercial banks or private investors cannot.
PERSONAL PROFILE: Fredrik Larsson
Age: 44
Education: B.Sc Business Administration Skövde
Born in: Kil in Värmland
Title: Senior Investment Adviser at Nefco – the Nordic Green Bank
Vision: To be present when the environment becomes a constant yet depoliticized topic.
Best book to read: “Despite Absurdity: How I Conquered Russia While It Conquered Me” Lennart Dahlgren. Gives a bottom-up insight into a broken system.
Sustainable leisure tip: Take an evening class in woodworking.
