Nordic Foodtech VC has announced the first close of its second fund at €40 million, targeting a final size of €80 million. Backed by institutional investors like Tesi and Elo Mutual Pension Insurance Company, alongside food industry stakeholders such as Valio Pension Fund and Heino Group, the fund will invest €500k to €2 million per startup, reserving significant capital for follow-ons. Focused on early seed and pre-seed rounds in the Nordics and Baltics, it will also co-invest across Europe. Partner Lauri Reuter emphasizes a pragmatic approach, stating the fund isn’t chasing unicorns but realistic exits, prioritizing B2B tech over consumer brands. The fund leverages academic spinouts, addressing Europe’s untapped research potential. Its first €42 million fund backed 18 startups, including precision fermentation firms like Chromologics (colors), Evodia (hop aromas), and Ironic Biotech (iron compounds). Reuter highlights unit economics, favoring high-value, low-inclusion ingredients like Ironic’s stable hemoglobin proteins, ensuring profitability. The fund avoids foundational biomanufacturing tech due to long timelines, focusing instead on near-market solutions.