Pale Blue Dot: A New Venture Firm Focused on Climate Impact

Hampus Jakobsson, Heidi Lindvall, and Joel Larsson – prominent figures within the European venture capital landscape – initiated the development of Pale Blue Dot by first analyzing existing shortcomings in the venture capital model.

These three entrepreneurs and investors brought extensive experience to the table. Their backgrounds included co-founding companies and accelerators such as The Astonishing Tribe (Jakobsson) and Fast Track Malmö (Lindvall and Larsson), alongside venture partner roles at BlueYard Capital (Jakobsson).

Core Investment Principles

Their foundational belief was that all investment funds should prioritize impact, actively considering methods for generating positive change. This led to a crucial question: if all funds were to embrace impact investing, how could their firm uniquely contribute?

The investors determined that climate change represented the most significant area for focused impact, and subsequently centered their mission around this critical issue.

Having secured €53 million ($63.3 million) in funding last year, the firm made initial investments in several promising companies. These included Phytoform, a London-based firm utilizing computational biology and synthetic biology to develop novel crops; Patch, a San Francisco-based platform financing carbon sequestration projects; and 20tree.ai, an Amsterdam-based startup employing machine learning and satellite data to mitigate forest fire and power outage risks.

Expanding Investment Portfolio

Pale Blue Dot has now raised an additional €34 million and expanded its portfolio with seven further investments, aiming for a total of 30 to 35 deals.

These investments are largely concentrated within Europe and encompass companies like Veat, a European provider of vegetarian prepared meals; Madefrom, a company developing sustainable alternatives to everyday products (currently operating in stealth mode); HackYourCloset, a clothing rental service designed to reduce textile waste; Hier, a fresh food delivery service; Cirplus, a marketplace facilitating the trade of recycled plastics; and Overstory, which leverages technology to prevent wildfires by providing utilities with insights into surrounding vegetation. 

The team intends to maintain a primary focus on European ventures, with selective investments in the U.S. They are particularly interested in companies focused on systemic change, rather than directly influencing consumer habits.

For example, while an investment in sustainable shopping filters might be less likely, the firm could invest in companies producing sustainable consumer products.

Investment Strategy and Firm Size

Individual commitments will range up to €1 million, with a strategy of making numerous investments. This diversified approach is deliberate, according to Jakobsson.

“Given the breadth of the climate challenge, we didn’t want to allocate 50% of the fund to a single sector like food or materials,” he explained. The founders also recognize their strengths lie in supporting early-stage entrepreneurs and fostering connections with value-adding investors.

“We consistently bring in co-investors who offer specialized expertise, while maintaining our role as guides and managers for the portfolio companies,” Jakobsson stated. “Our priority is to shield the founder from an overwhelming influx of investor opinions.”

Distinctive Limited Partner Base

The firm’s selection of limited partners is another key differentiator. Jakobsson confirmed they declined capital from oil companies, prioritizing support from tech founders and investors capable of providing valuable contributions.

These include Prima Materia, the investment vehicle of Spotify founder Daniel Ek, as well as the founders of Supercell, Zendesk, TransferWise, and DeliveryHero. Albert Wenger, a managing partner at Union Square Ventures, is also a backer of the firm.

The overarching ambition is straightforward: to establish Pale Blue Dot as the leading early-stage climate fund in Europe.

“Our goal is to become the definitive European climate fund,” Lindvall emphasized. “This is where we believe we can have the greatest impact.”