BackingMinds Secures €20 Million from EIF to Invest in Overlooked Nordic Startups

Swedish venture capital firm BackingMinds has secured a €20 million commitment from the European Investment Fund (EIF) to support its third fund, BackingMinds Invest III. The fund will target early-stage businesses across Sweden and the wider Nordic region, with a focus on entrepreneurs who often struggle to attract investment through traditional venture capital networks.

The commitment, equivalent to 220 million Swedish kronor, is backed by the European Union’s InvestEU programme. The EIF, part of the European Investment Bank Group, will serve as the fund’s first institutional investor. Its participation is also expected to help BackingMinds attract additional institutional capital.

Founded in Stockholm in 2016 by Sara Wimmercranz and Susanne Najafi, BackingMinds was established to address gaps in venture capital distribution. The firm seeks out promising founders beyond established investor networks, including entrepreneurs operating outside major startup hubs.

BackingMinds Invest III will prioritise companies founded by women, entrepreneurs with immigrant backgrounds and businesses based outside capital cities. Alongside the diversity of its founding teams and locations, the fund will look for commercially viable companies working on environmental and social challenges.

Potential investment areas include reducing carbon emissions, improving energy efficiency, advancing healthcare and strengthening education. The strategy combines an emphasis on businesses with growth potential with the objective of directing more capital towards founders who may otherwise be overlooked.

Building on an established investment strategy

BackingMinds has invested in 23 companies through its first two funds. According to the EIF, 46% of those businesses had at least one female founder, 43% had founders with immigrant backgrounds and 71% were established outside a capital city.

The new commitment builds on the firm's previous fundraising efforts, including a €50 million fund close in 2022. BackingMinds has also supported companies across different sectors, reflecting its industry-agnostic approach to early-stage technology investing.

For the EIF, the investment forms part of a broader effort to improve access to finance for European startups and smaller businesses. Through InvestEU’s Social Impact Equity component, the programme supports investment funds backing companies that combine commercial objectives with positive environmental or social outcomes.

EIF Deputy Chief Executive Merete Clausen said the partnership would help identify talented entrepreneurs beyond conventional venture capital networks and direct funding towards companies addressing important challenges.

BackingMinds founding partner Sara Wimmercranz similarly highlighted the need for investors to actively search for founders outside familiar professional networks, rather than relying on existing connections to identify opportunities.

With the EIF acting as an anchor investor, BackingMinds aims to expand its reach across the Nordic startup ecosystem. The fund’s approach reflects a broader question for European venture capital: how to discover promising businesses in regions and communities that receive a smaller share of traditional investment.