Update: this article was misstankly posted in 2024, but is about funding that happened in 2023!
The Ljungberg family’s climate-focused investment firm, Longrun Capital, has made its largest investment to date by leading a € 13 million (SEK 150 million) funding round in Ekolution, a GreenTech company aiming to revolutionize the insulation market with a hemp-based product.
Ekolution was founded in 2013 by Remi Loren, Naib Woldemariam and Henrik Jacobsson and the startup has gotten lots of interest for it’s innovative approach and large scale production. The insulation they produce offers the potential to reduce the carbon footprint of construction and real estate companies by over 5% by acting as a carbon sink.
The investment is split between SEK 61.5 million in private capital and up to SEK 94.5 million in funding from the Swedish Environmental Protection Agency’s Klimatklivet program. These funds will enable Ekolution to develop a high-tech machine park capable of processing around 37,000 tons of hemp annually and binding 72,000 tons of CO2 equivalent per year.
“Ekolution has both potential to create significant climate impact and build a scalable commercial business,”
says Remi Loren, CEO at Ekolution.
Johan Ljungberg, CEO of Tagehus and Chairman of Atrium Ljungberg, emphasized the importance of being at the forefront of the green transition, stating that Longrun’s goal is to support companies offering innovative climate solutions.
“Many investors are moving towards more sustainable investments, but I still feel that we stand out in the climate analysis as we primarily seek maximum climate benefit per invested krona. We make the assessment that these companies generally have lower market risk and higher potential, which also means better financial returns,”
says Johan Frenckner
This move highlights a growing trend towards sustainable investments, with Longrun focused on maximizing climate benefits while aiming for strong financial returns.
“Although Longrun has a holistic perspective on the climate crisis, it feels extra exciting to be involved in enabling the commercialization of a product with a direct link to the family’s other operations,”
says Cristina Ljungberg, board member of Longrun Capital.
