The investments to the Polestar Circular Debt Fund include 30 million euros from the European Investment Fund, and 10 million euros that comes from Invest-NL under the Dutch Alternative Credit Instrument (DACI). Additionally, the Danish investment fund Realdania and the Dutch regional development authority Oost NL are contributing to the investment.
The DACI is a joint initiative of the European Investment Fund and Invest-NL, aimed at bridging the financing gap for innovative and sustainable companies. This initiative specifically targets enabling investments in the circular economy, where traditional financing methods often fall short.
Polestar Finances Innovation
By effectively leveraging European funds for Dutch businesses, Invest-NL strengthens the position of Dutch small and medium-sized enterprises in sustainability and innovation. The Polestar Circular Debt Fund focuses on companies in the demonstration phase of their products or technologies.
These companies often face challenges in securing financing for their first commercial production facility. The fund enables 20-30 companies to scale their innovative technologies and business models, thereby replacing traditional value chains with more sustainable alternatives.
Ulrike Kostense, Senior Investment Manager at Invest-NL, highlights the importance of this collaboration: “By bridging the financing gap for innovative circular production companies, Polestar finances innovation and accelerates the transition to a circular economy. This aligns perfectly with our mission to promote sustainable innovation, which yields both environmental and economic benefits.”
