The European Investment Fund (EIF) and the Hungarian National Capital Holding (NCH) Launch a €40 Million VC Fund to Strengthen Enterprises with Social and Environmental Impact

BUDAPEST, Hungary, Sept. 26, 2024 (GLOBE NEWSWIRE) -- The European Investment Fund (EIF) and the Hungarian National Capital Holding (NCH) have launched Impact Ventures III, a €40 million venture capital fund aimed at supporting early-stage, innovative SMEs and startups with positive social and environmental impacts in Hungary and Central Eastern Europe.

The new fund, which complies with paragraph 8 of the SFDR regulation on sustainability in the financial sector, is being launched in partnership with the National Capital Holding (NCH) and the European Investment Fund (EIF). The fund is once again managed by Impact Ventures Ltd, a specialist in corporate financing for social and environmental purposes, and aims to build on the success of previous investment periods of Impact Ventures I and II VC Funds. The new fund primarily provides VC investment, focusing on niche markets in highly scalable, technology-based key areas such as health and medical technology, education technology, recycling and waste management, as well as clean energy.

“The successful investment periods of the previous funds demonstrate the need to embrace sustainable business models that deliver significant benefit to society and the environment. It’s a particularly proud moment that EIF has once again chosen us to be their partner in establishing a new VC fund supporting Hungarian and CEE startups,” said Bence Katona, CEO of National Capital Holding.

“We are very glad to be renewing our collaboration with Impact Ventures and thus contributing to the sustainable development of both the Hungarian and broader European economy. The fund offers a vital new source of financing to a commercially underserved segment of the economy, supporting companies that can ultimately enhance quality of life and environmental protection. Our ongoing collaboration with the National Capital Holding reaffirms that partnerships between EU institutions, the public and private sectors, and financial institutions can serve to accelerate social development and a sustainable economy,” said Roger Havenith, Deputy Chief Executive of EIF.

In addition to delivering financial returns, the companies are required to achieve measurable social and environmental impacts. To this end, the EIF has developed a unique set of criteria that describes the definition of specific, quantifiable social or environmental objectives for each investment.

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