The European Investment Fund (EIF) and Hungarian National Capital Holding (NCH) have announced the launch of Impact Ventures III, a €40 million venture capital fund aimed at supporting early-stage, innovative small and medium-sized enterprises (SMEs) and startups with positive social and environmental impacts in Hungary and Central Eastern Europe.
Impact Ventures III adheres to paragraph 8 of the Sustainable Finance Disclosure Regulation (SFDR), ensuring that all investments meet stringent sustainability criteria.
Managed by Impact Ventures Ltd, the fund builds on the successes of its predecessors, Impact Ventures I and II, continuing its focus on corporate financing for social and environmental purposes.
The new fund targets highly scalable, technology-driven sectors, including health and medical technology, education technology, recycling and waste management, and clean energy.
By concentrating on these key areas, Impact Ventures III aims to foster innovation that addresses critical societal and environmental challenges while driving economic growth in the region.
Bence Katona, CEO of National Capital Holding, emphasized the importance of sustainable business models.
“Sustainable business models that provide significant societal and environmental benefits are crucial for long-term growth and resilience,” Katona said.
He added that the collaboration with EIF underscores a commitment to supporting Hungarian and Central Eastern European startups that contribute to sustainable development.
Roger Havenith, Deputy Chief Executive of EIF, highlighted the fund’s role in providing essential financing to commercially underserved segments of the economy. “Impact Ventures III is designed to bridge the funding gap for innovative startups that are driving social and environmental change,” Havenith stated.
In addition to financial returns, Impact Ventures III requires portfolio companies to achieve measurable social and environmental impacts. The EIF has established a unique set of criteria to ensure each investment meets specific, quantifiable objectives, reinforcing the fund’s dedication to sustainability.
The partnership between EU institutions, public and private sectors, and financial institutions aims to accelerate social development and promote a sustainable economy. Impact Ventures III represents a significant investment in the region’s entrepreneurial ecosystem, enhancing quality of life and environmental protection through targeted support for innovative startups.
The fund is expected to play a crucial role in advancing sustainable technologies and fostering economic resilience in Hungary and Central Eastern Europe, contributing to the broader goals of sustainable development in the region.
