Variolytics Secures Growth Financing Round with Nordic Alpha Partners
Deal News | Jan 30, 2025 | High-Tech Gruenderfonds Manage
Variolytics, a pioneer in emission-reducing sensor technology for the wastewater sector, has closed a significant growth financing round, spearheaded by Nordic Alpha Partners (NAP). Founded in 2020 from the Fraunhofer Institute, the German company innovates with sensors that measure and reduce nitrous oxide emissions, a potent greenhouse gas. Other notable investors include the European Innovation Council (EIC), High-Tech Gründerfonds (HTGF), and Fraunhofer Technology Transfer Fonds (FTTF). This investment follows NAP's strategic involvement in Variolytics’ risk reduction, pricing validation, market plan refinement, and customer identification. The company's technology can slash emissions and energy consumption by up to 50% and 20%, respectively, within a year of deployment. This round highlights the importance of advanced European innovation, as well as Variolytics' role as a leader in the water tech space. The transaction awaits regulatory approval and is expected to conclude in Q1 2025.
Sectors
- Water Technology
- Green Technology
- Private Equity
Geography
- Germany – Variolytics is a German company, and the country serves as the hub for its operations and innovations.
- Europe – Other investors like the European Innovation Council (EIC) also highlight a European focus, particularly in terms of technology development and commercialization.
Industry
- Water Technology – Variolytics specializes in sensor technology within the wastewater sector, making the water technology industry a primary focus.
- Green Technology – Variolytics aims to reduce greenhouse gas emissions through advanced technology, highlighting its involvement in the green technology sector.
- Private Equity – The investment round led by Nordic Alpha Partners involves various investment funds, characterizing the role of private equity in the transaction.
Financials
- Up to €5 million – Subsequent financing rounds supported by FTTF for start-up funding.
- Over €2 billion – Total funds managed by High-Tech Gründerfonds.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Variolytics | Target Company | Company | A company developing sensor technology to measure and reduce emissions in the wastewater sector. |
| Nordic Alpha Partners | Leading Investor | Company | A growth equity fund investing in sustainable hard-tech companies, leading a significant stake in Variolytics. |
| European Innovation Council (EIC) | Investor | Company | A European fund supporting disruptive technology commercialization through investments. |
| High-Tech Gründerfonds (HTGF) | Existing Investor | Company | Early-stage investor in Germany funding start-ups in various tech fields. |
| Fraunhofer Technology Transfer Fonds (FTTF) | Existing Investor | Company | Supports start-ups utilizing Fraunhofer technology with finance and expertise. |
| Tobias Schwind | Partner at FTTF | Person | Expressed enthusiasm about the collaboration between Variolytics and FTTF support. |
| Shari Rana | Investment Director at NAP | Person | Highlighted Variolytics' technological innovation and alignment with NAP's investment strategy. |
| Jannik Brey Christensen | Value Creation Partner at NAP | Person | Spoke about the collaboration with Variolytics on commercial strategies. |
| Johann Barlach | Chief Financial Officer of Variolytics | Person | CFO of Variolytics, discussed the strategic partnership with NAP. |
| Anne Umbach | Investment Manager at HTGF | Person | Commented on the strong commitment by NAP to Variolytics. |
| Svetoslava Georgieva | Chair of the EIC Fund Board | Person | Announced the partnership with NAP in supporting Variolytics' growth. |