Posted inLatest news

European firms announce large funding-raises

Renewable energy

Finnish firm Valmet has signed a €175m loan agreement with the EIB to support its efforts to finance technologies that replace fossil fuels with renewables.

According to the company, the financing aims to enhance the resource and energy efficiency as well as the performance of Valmet’s technology, promote the use of recyclable raw materials and improve the sustainability of Valmet’s operations. The financing is part of the European Investment Bank’s dedicated package of support to REPowerEU – the EU plan to eliminate dependence on fossil fuel imports. Launched at the end of last year, the initiative is the continent’s attempt to wean itself off Russian fossil fuels by 2030.

Janne Pynnönen, vice-president of research and development at Valmet, said: “The aim of Valmet’s research and development work is to create new technologies, products and services that address customer needs and help respond to some of the most important global megatrends: enhancing the efficiency of raw materials, water and energy, promoting the use of renewable raw materials and reducing emissions.”

Valmet, whose research and development spending was €95m in 2022, has 28 research and developments centres around the world and approximately 1,300 protected inventions. “We are happy about this loan agreement as it improves Valmet’s readiness to support the green transition in Valmet’s customer industries,” Pynnönen added.

Significant capital

Valmet is not the only firm raising significant amounts of capital this week. A few days earlier, Dawn Capital announced it had raised $700m (€664m), of which $620m would be channelled to its software fund and the rest towards a follow-on fund.

According to “The firm’s primary $620m vehicle, Dawn V, will support growing European B2B software firms with initial tickets ranging from $10m to $40m at Series A or Series B stages. The $80m follow-on fund, Dawn Opportunities III, will provide further support, Series C stage and onwards, for outstanding portfolio companies, meaning the firm can go the distance from Series A through exit.” Other reports suggest the firm aims to invest in up to 20 companies with the new funds.

Despite being based in London, Dawn Capital is, according to CNBC, one of the most-prominent tech investors on the continent. Among its portfolio is the Swedish payments firm iZettle and the banking company Tink.

The capital raise goes against the grain of the current backdrop, wrote CNBC, adding: “Venture capital investment has fallen off a cliff as investors re-evaluate their allocations amid higher interest rates and rising inflation. With rates at multi-year highs, innovative, growth-oriented companies that are making losses and take longer to make a return on their investments have become less attractive. Stodgy, profitable firms with more stable revenue streams, on the other hand, are seeing greater interest.”

Pete Carvill

Pete Carvill is a reporter, writer, and editor based in Berlin who has been writing for the B2B and mainstream media since 2007. He is a contributing writer for Expert Investor and, in addition, has...

Part of the Mark Allen Group.