Unconventional Ventures Announces €50M ($58M) First Close of Second Fund

News World

Published by Stephen Oluwadara at November 11, 2025

How Unconventional Ventures is Tackling Systemic Biases in VC

General partner Nora Bavey told Sifted that the majority of investors from fund one backed this fund, alongside five new LPs. This signaled strong confidence from both returning and new investors.

“Those who didn’t continue from fund one to fund two were mainly high‑net‑worth individuals, who unfortunately don’t have the capital to move right now,” she says. “That’s a reflection of the market.”

The current political climate in the United States, particularly the administration’s earlier call for American and European companies to abandon corporate DEI initiatives.

This shift has led to reduced support for funds and accelerators focused on women and underrepresented founders. According to Bavey, the situation reflects broader challenges for diversity focused investment.

Nevertheless, these challenges have only hardened Unconventional’s resolve, says founding partner Thea Messel. “When you invest in diverse founders, you unlock new markets, overlooked opportunities and future‑proof solutions,” says Messel. “Fund two is about going bigger, bolder and proving that equity and returns can, and must, coexist.”

Unconventional Ventures continues to build a track record of early‑stage impact investments. Bavey highlights UV’s early backing of Swedish battery company Drev, which announced its €2.8m seed round last week, as one of the highlights from its first fund.

The startup is developing next‑generation lithium‑ion technology that could cut battery costs by up to 30 %. She also mentioned UK‑based climate fintech Climate X as one of the fastest‑growing startups in UV’s portfolio. It’s preparing for a Series B, Bavey says.

The firm’s focus on climate‑tech and financial inclusion underscores its mission to drive measurable social and environmental outcomes. Unconventional Ventures was founded to challenge the structural biases in venture capital. In Europe, only 1‑2 % of money goes to all‑women founding teams, and less than 0.5 % to startups founded by ethnically diverse people.

By concentrating on these underserved segments, UV aims to generate both impact and financial returns. Apart from a few investments in the UK, and one each in Germany and Spain, UV has invested only in the Nordics, where its two general partners are based. This geographic focus allows the team to leverage local networks and deep industry expertise.

How These New Fund Will Be Deployed

The second fund will concentrate on pre‑seed and seed‑stage investments across impact verticals such as climate and sustainability, health, and education. While UV acknowledges the growing importance of technology, it views AI more as a background enabler than as a core investment thesis.

“For us, AI and deeptech are hygiene factors. We have never marketed ourselves as a deeptech AI fund. We don’t need to when we focus on these three areas and the builders,” Bavey says.

“It’s more about how applicable it is and how global it can become. That’s where we come in.” By keeping the focus on these high‑impact sectors, the firm aims to support entrepreneurs who are building scalable solutions that address pressing societal challenges.

With the new fund, Unconventional Ventures appointed Alexis Horowitz Burdick, previously a member of UV’s investment committee, as its third general partner.

She will split her time between the United States and the Nordics. This gives the team on‑the‑ground insight in both markets and enables faster decisionmaking for portfolio companies operating across the Atlantic.

“Some of our portfolio companies have a presence in the US market. The competence we have from having feet on the ground and insight there is valuable,” Bavey says. “[Alexis] also built up Lego Ventures, so she’s much more Series A and later stage,” she adds.

“We’re starting to see an incredible pipeline at that stage, and we wanted a GP with that expertise who can help our companies now that many of them are growing so quickly.” This addition not only broadens UV’s operational reach but also deepens its ability to guide founders through the critical scaling phase.

By doubling down on its mission, Unconventional Ventures aims to demonstrate that impactful investing can thrive alongside solid financial performance.

Main Image: Nora Bavey Thea Messel Unconventional Ventures. Image Source: Sifted.eu