As repeatedly emphasized, the persistent lack of diversity continues to be a pressing issue within the technology startup and venture capital (VC) ecosystem. This issue has long been acknowledged in the United States and is equally concerning in Europe. Zooming in on the Nordic region, the lack of diversity becomes even more pronounced. A 2020 report revealed that over the past decade, all-male founding teams consistently received no less than 83% of VC funding in the Nordic region, while all-women teams received a mere 2.2% of the funding.
Therefore, it is heartening to witness the emergence of a VC fund in the region that actively addresses these challenges, not only within its team but also embedded in its investment strategy, supporting a variety of compelling businesses.
Originally launched as more of a “nano-fund” by Thea Messel in 2018, along with co-founder Nora Bavey, Unconventional Ventures (UV) has now evolved into a full-fledged VC structure. UV invests across the Nordic region, focusing on sectors such as healthtech, women’s health, diversity tech, sustainable fashion, food tech, and fintech.
The fund has made significant progress, having crossed the halfway mark towards its target of €30 million dedicated exclusively to impact tech companies led by diverse founding teams.
Prominent backers of the fund include European VC heavyweight Atomico, the Export and Investment Fund of Denmark (EIFO), Investinor (an evergreen investment company funded by the Norwegian government), and Danish investment firm Chr. Augustinus Fabrikker. Joining this group are new limited partners (LPs) such as The Case for Her, a Stockholm-based firm specializing in women’s health investments, and The Inner Foundation, founded by PJ Pärson, the founder of Northzone, and his wife Annika Sten Pärson.
UV’s portfolio boasts several standout companies. Among them, Climate X (U.K.) has secured the largest funding of €10.65 million. This climate analytics startup, closely aligned with the fintech sector, assesses climate risk for asset holders.
Ocean Oasis (Norway) focuses on sustainable desalination using wave energy, providing a more eco-friendly approach to freshwater production.
SciFree (Sweden) offers open access to research for universities, promoting transparency in research funding and countering the challenges of fake news in academia.
Meela Health (Sweden) operates as a matchmaking tool for therapists and clients, initially targeting women but now extending its services to men. Meela has achieved an impressive drop-off rate of less than 2% in therapy sessions, highlighting the effectiveness of its AI-powered matchmaking.
Additional companies in UV’s portfolio include:
- FJONG (Norway) – circular fashion
- Leia Health (Sweden) – personalized parental health
- Equality Check (Norway) – diversity and inclusion analytics
- DORA (Denmark) – digitizing for greener freight transport
The fund’s next focus is on synthetic biology startups.
Notably, UV claims that 75% of its investments are led by all-female teams, and over 25% have founders or co-founders from ethnic minorities. Furthermore, 67% of the portfolio is dedicated to addressing climate change, while 20% tackles challenges related to women’s health.
Before establishing UV, Thea Messel, based in Copenhagen, worked in banking and subsequently co-founded and developed platforms to support tech and impact startups. She also served as a former member of the UNEP-FI working group for Sustainable Banking.
Nora Bavey, a former edtech founder, has experience in conceiving and launching concepts aimed at supporting underrepresented founders in the Nordic region.
In an interview, Bavey noted that although the new fund operates as a fully-fledged VC structure, making diverse investments is made easier due to their longstanding commitment to following these initiatives closely.
While acknowledging the proliferation of impact funds in the Nordic region, she emphasized the uniqueness of UV, which not only exclusively invests in diverse founders but also prioritizes impact at its core.
Both Messel and Bavey believe that there is untapped potential in the field of women’s health waiting to be explored further by impact funds. They highlight the breadth of issues beyond fertility or menstruation that startups in this space are addressing, making it an exciting area for exploration.
