ImpactAlpha, November 6 – Ali Najafbagy, an ex-investment banker with Goldman Sachs, was scouting impact deals for London-based Mustard Seed when he decided to launch his own fund. He recruited Pauline Wink, an ex-Goldman colleague, and they launched 4impact, a Dutch venture fund for early stage impact tech companies.
The partners have now raised €14 million ($15.5 million) toward a €20 million goal to back Dutch software companies with a social mission.
“There’s a huge opportunity in the Netherlands to get investment capital to startups,” Najafbagy told ImpactAlpha. “There’s a lot of grant and angel funding available, but not many early impact funds.”
4impact’s fund is set up as a traditional 10-year fund, and plans to actively invest for the first five years. It has already made two investments: Envision, an artificial intelligence-based voice guidance app for the visually-impaired, and Solar Monkey, which makes design software for solar companies.
The Dutch Ministry of Economic Affairs and Climate Policy committed €6 million to 4impact while private investors including foundations, family offices, commercial and impact investors committed €8 million.