Swedish venture capital firm BackingMinds has raised €50 million in the first close of its third fund, BackingMinds Invest III, with the European Investment Fund (EIF) contributing €20 million as the anchor investor. The fund plans to invest in around 20 early-stage companies, focusing primarily on the Nordics, with at least 90% of its capital earmarked for the region. The remaining 10% may be invested elsewhere in Europe. The fund will target initial investments of €1 million to €3 million per company, with additional capital reserved for follow-on rounds. Its final close is expected in the first quarter of 2027.
BackingMinds is an early-stage venture capital firm founded in 2016 by Sara Wimmercranz and Susanne Najafi. The firm invests in startups operating in climate and resilience, AI and digital sovereignty, and human potential. It uses data-driven sourcing methods to identify investment opportunities beyond traditional venture capital networks, with a focus on companies across the Nordic region and selected markets elsewhere in Europe.
“Talent is everywhere, but capital still isn’t. That gap is an opportunity, and investors from the EIF to some of Europe’s most successful tech entrepreneurs see it too. Our first close is already larger than our entire previous fund, and it lets us back more of the founders building the answers Europe needs,” says Susanne Najafi, Founding Partner of BackingMinds.
Fund targets climate, AI and human potential
BackingMinds Invest III will focus on three areas: climate and resilience, AI and digital sovereignty, and human potential. Its investment strategy reflects growing European interest in technological independence, energy security and industrial competitiveness.
The firm aims to identify founders who may be overlooked by conventional venture capital networks, including entrepreneurs based outside major cities and those with immigrant backgrounds. According to BackingMinds, 71% of the 23 companies backed through its first two funds were founded outside Stockholm, while 43% had at least one founder with an immigrant background and the same share had at least one female founder.
“The biggest challenges of our time need new solutions. But great minds think alike. That’s the problem. Venture capital still finds its companies through networks, and networks filter out what they don’t recognise. Europe needs unfiltered and pattern-breaking ideas. We have built our own way to find them,” says Sara Wimmercranz, Founding Partner of BackingMinds.
The new fund has already made several investments, including in energy storage company Tavion. BackingMinds said Tavion’s valuation had reached €175 million, six times the level at which the firm invested. The announcement did not specify the timing of that valuation.
EIF commits €20 million through InvestEU
The EIF’s €20 million commitment was made under the European Union’s InvestEU programme, which aims to mobilise public and private financing for businesses and projects aligned with the bloc’s strategic priorities. The EIF, part of the European Investment Bank Group, invests in venture capital funds and provides financing instruments intended to improve access to capital for startups and small and medium-sized enterprises.
Beyond the EIF, BackingMinds Invest III has attracted established private investors and technology entrepreneurs who have founded and scaled European companies. The fund remains open to selected additional investors ahead of its planned final close in early 2027.
BackingMinds was founded in 2016 by Wimmercranz and Najafi, who previously built e-commerce businesses in the Nordic region. Through its third fund, the firm plans to continue investing in early-stage companies while seeking opportunities beyond the founder and investor networks traditionally used by the venture capital industry.
Read the orginal article: https://arcticstartup.com/backingminds-raises-e50-million/
