Global Logistics Focus

Special Report

Former Maersk Growth head targets climate-focused startups with new fund

By Eric Johnson

A new investment fund run by a Maersk veteran who previously headed the shipping line ’ s venture capital arm has landed a $ 54.9 million infusion from the European Investment Fund ( EIF ) to support climate-focused logistics startups .

The investment into Nine Realms Venture Capital , founded in 2021 by Sune Stilling , former head of Maersk Growth , will mainly focus on EU-based startups , with a particular focus on companies headquartered in Germany .

The EIF investment accounts for a quarter of the total fund Nine Realms is raising to plug back into primarily European startups . Both EIF ’ s investment and the size of the fund are large for early-stage logistics investors , with similarly focused funds typically raising $ 40 million to $ 50 million . That could help bridge what Nine Realms has called a “ maturity gap ” between US and European logistics technology ecosystems .

The firm ’ s focus on climate-oriented startups is also unusual , with most funds deploying cash into early-stage climate-focused technology providers as part of a larger emphasis on supply chain .

Nine Realms ’ $ 220 million venture fund is unusual in its focus on green logistics startups . Shutterstock . com due to poor cargo demand .

There are a number of supply chain-focused funds that have continued to invest at an early stage in logistics startups , such as Autotech Ventures , 8VC , Newark Ventures , Schematic Ventures and Dynamo . But those funds are mostly , if not wholly , investing in US-based startups and none have specific climate-only mandates .

Nine Realms is targeting startups in Europe primarily because a funding gap exists between companies in Europe and North America , which has a more robust venture capital environment .

“ 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 ,” Nine Realms said .

email : eric . johnson @ spglobal . com

“ Europe currently accounts for only 5 % of logistics venture funding ... despite having more than 50 % of large logistics companies .”

Nine Realms has committed to deploying 70 % of its nearly $ 220 million fund into European early-stage companies addressing environmental challenges associated with global supply chains .

The EIF investment “ validates our vision to support transformative technologies that not only optimize efficiency and resiliency , but also drive significant environmental impact ,” Stilling said .

Stilling started Nine Realms after leaving Maersk Growth in 2021 ; the project remained largely under wraps until it was announced publicly in March . The EIF funding signals acceleration of its ability to invest in supply chain startups , only a year after McKinsey found that venture funding into logistics startups had cratered post-pandemic

18 Journal of Commerce | September 9 , 2024 www . joc . com