The private equity division of IKEA’s largest franchisee, Ingka Group, recently invested in London-based Ocean 14 Capital’s ocean sustainability LP fund, bringing the total amount raised to €130 million, up from Ocean 14’s €150 million cap, tech.eu reports.
This is believed to be Ingka Investment’s first deal with an ocean-specific LP vehicle. Ocean 14 Capital first launched in November 2021 after raising €80m in seed funding from European investment fund, Builders Vision, Minderoo Foundation. In September last year, the fund added €10m from Monaco’s sovereign wealth fund.
According to the OECD, by 2030, around $3 trillion will be generated by ocean-based businesses within the so-called ‘blue economy’.
“Ocean 20: Building a Sustainable Blue Economy”
In a special session on “Ocean 20: Building a Sustainable Blue Economy” Peter Thomson, Special Envoy of the UN Secretary-General for Oceans and Co-Chair of the World Economic Forum’s Friends of Ocean Action community of ocean leaders, said a sustainable blue economy represents nothing less than “the future of human security” and is critical to intergenerational equity, urging leaders to seize critical opportunities for Ocean Action in 2023.
Over the next three years, Ocean 14 will support 20-25 growth-stage ocean restoration businesses, particularly in areas such as sustainable fishing practices, alternative protein products and ocean conservation.
Around two-thirds of the LP Fund’s money will be directed to European ocean start-ups.
It currently has four portfolio holdings. Two have been officially disclosed: AION, a Norwegian circular economy company that helps supply chains reuse plastic waste, and SyAqua, a shrimp aquaculture company with operations in the US and Singapore.
The LP Fund was set up by Max Gottschalk, former founder of Gottex Fund Management, along with George Duffield and Chris Barnes, who previously co-founded the Blue Marine Foundation, a charity tackling ocean problems caused by overfishing.
The importance of technologies
Tech not only has allowed more plastic to be extracted from oceans, but it has given businesses an array of data insights into the health of marine and aquaculture ecosystems. Tech.eu reported recently on a major ocean plastics removal programme undertaken by Rotterdam’s Ocean Cleanup. Other European startups in the field, such as Lisbon’s TEKEVER, are deploying drones to survey oceans and extract data insights.
Sustainable oceans featured on the agenda of World Economic Forum delegates at January’s summit in Davos.
“It is a real testament to the quality of our fund and intention that Ingka Investments has come on board in such a significant capacity. If there’s no ocean, there’s no us – it connects us all. It provides food security and plays a vital role in achieving the UN sustainability agenda”
Said Chris Barnes, co-founder of the marine sustainability charity “Blue Marine Foundation”.
The perfect goal
Ingka’s head of financial market investments, Samuel Rundle, added: “Ingka Group is guided by the IKEA vision to create a better everyday life for the many. As a purpose-led company, our aim is to invest with impact, delivering positive returns for communities and the environment for generations to come.
Samuel also commented that ocean health is critical to cleaner and more inclusive restoration. He also shares his strong impressions of the Ocean 14 team’s strategy, and that they are excited to contribute to accelerating sustainable solutions to improve the state of the oceans.