EIF's $22M Bet on BackingMinds: The Startup Funding Shift

Jan de Vries · 2026-10-20

Swedish venture capital firm BackingMinds just landed roughly $22 million from the European Investment Fund (EIF) for its third fund, BackingMinds Invest III. The goal? To find the founders that traditional investors keep missing. ### EIF Steps In as First Institutional Backer The EIF, part of the Luxembourg-based European Investment Bank Group, is the first institutional investor in this fund, with support from the EU's InvestEU program. This isn't BackingMinds' first rodeo with the EIF—they closed a $54 million fund in 2022 and backed Swedish entrepreneurship platform Techarena in 2025. "The future is never where you expect it, and neither are the founders building it," says Sara Wimmercranz, Founding Partner at BackingMinds. "Some of the most innovative companies in the Nordics are being built where venture capital rarely reaches. A network is a filter. It lets through what already looks like the network and repeats the patterns of the past. As investors, we need to be more open and seek founders out. The EIF's commitment lets us do that on a larger scale." ### A Wave of Institutional Support for Niche Funds BackingMinds' news comes as several specialized European venture funds secure major backing in 2026. In Sweden alone, Norrsken Evolve closed a $67 million pre-seed fund, and Turbine Capital reached a $58 million final close for Nordic DeepTech—both with EIF support. Elsewhere, Berlin's Auxxo closed its $36 million Female Catalyst Fund II, Copenhagen's Climentum Capital secured a $65 million first close for climate HardTech (including $43 million from the EIF), and Munich's Ananda Impact Ventures raised $79 million at first close for impact investments. Together, these fund closings represent about $305 million, excluding BackingMinds' separate $22 million EIF commitment. "Europe cannot afford to leave talented entrepreneurs undiscovered simply because they are outside the traditional venture capital networks," adds Merete Clausen, Deputy Chief Executive of the EIF. "BackingMinds has shown that promising businesses can be found in places and among founders that investors too often miss. By supporting this fund, we are helping to unlock that potential and bring more capital to companies tackling some of Europe's most pressing challenges." ### BackingMinds' Track Record: Betting on the Overlooked Founded in 2016 by Sara Wimmercranz and Susanne Najafi, Stockholm-based BackingMinds was created to address gaps in capital distribution. Through its first two funds, the firm has invested in 23 companies. The results speak volumes: - 46% have had at least one female founder - 43% have had founders with immigrant backgrounds - 71% were established outside a capital city The new fund will focus on early-stage companies primarily in Sweden and the Nordic region, seeking out entrepreneurial talent beyond established networks. It will target businesses founded by women, by people with immigrant backgrounds, and those based outside capital cities. The fund will also prioritize commercially promising companies addressing environmental or social challenges—from reducing carbon emissions and improving energy efficiency to advancing healthcare and education. According to the EIF, their support is designed to help BackingMinds Invest III attract other institutional investors. It's a signal that Europe's startup ecosystem is waking up to the value of looking beyond the usual suspects.