The European Investment Fund (EIF) has signed a €50 million (US$55.05 million) participation in Nine Realms Venture Capital’s latest fund focusing on supporting early-stage technology-enabled SMEs in the supply-chain sector.

The main goal of the investment is to support companies with strong ideas to improve the environmental footprint of the global supply chain, which can account for up to 90% of a consumer good’s footprint.

The fund has a target size of €200 million and will specifically target supply-chain and transportation technology, industrial decarbonization, environmental sustainability and the blue economy for its investments.

Nine Realms, the organizations say, will mainly focus on the EU, with at least 70% of the investments destined for EU countries. The fund will have a particular focus on Germany, already a key market for the fund manager, where it will also open a local office.

Nine Realms, they say, aims to address one of the existing funding gaps in the early-stage segment of the supply-chain technology sector in Europe, as well as a maturity gap between the European and American ecosystems.

Europe currently accounts for only 5% of logistics venture funding worldwide, while representing 13% of overall venture funding, and despite having more than 50% of large logistics companies headquartered in Europe.

“Supply chains are an underestimated part of our climate puzzle,” says EIF chief executive Marjut Falkstedt. “In terms of both its carbon footprint and the optimization of logistics for perishable goods, there is a lot to gain in this sector.”

Sune Stilling, managing partner at Nine Realms VC, adds: “The EIF recognizes the immense potential at the intersection of supply chain and sustainability. With our expertise in both supply chain and venture capital, we are uniquely positioned to identify and nurture the next generation of game changers in this €7 trillion market⁠⁠.”