Kvanted Oy

Updated: 25.9.2024

OWNERSHIP AND MANAGERS

Kvanted Fund I Ky (the “Fund”) is a limited partnership incorporated and existing under the laws of Finland and managed by its General Partner Kvanted GP I Oy. Kvanted GP I Oy has appointed Kvanted Oy (“Kvanted”) to manage the partnership. Kvanted is owned by the partners Axel Ahlström, Eerik Paasikivi and Maria Wasastjerna.

SHORT DESCRIPTION AND DETAILS OF KVANTED

Kvanted is a Helsinki-based early-stage VC firm focused on industrial technology. Kvanted’s investment focus includes both software and hardware companies that have demonstrated their ability to transform the industrial value chain. Through the Fund, the firm makes, manages, and divests investments primarily in early- and growth-stage industrial technology companies and industrial spin-offs.

Kvanted’s investment philosophy is rooted in accelerating industrial decarbonization and digital transformation, with a thematic focus on industrial automation, sustainability, and supply chain resilience. The Fund’s first closing took place in May 2023, and investments in portfolio companies began in the fall of 2023.

LIMITED PARTNER CLASSIFICATION AND GEOGRAPHICAL LOCATION

Insurance Companies 0%

Other (incl. Capital Markets, Sovereign, Wealth Funds) 0%

Fund I

Finland 75%

Rest of Europe 25%

Outside of Europe 0%

REGISTERED AIFM

Kvanted is a registered Alternative Investment Fund Manager (AIFM). This entity is supervised by the Finnish Financial Supervisory Authority

REPORTING AND VALUATION GUIDELINES

Kvanted follows Invest Europe’s Investor Reporting Guidelines in investor reporting. The valuation of the portfolio is done in accordance with the International Private Equity and Venture

Capital Valuation (IPEV) Guidelines.

FVCA MEMBERSHIP

Kvanted is a member of the Finnish Venture Capital Association (FVCA) and follows the association’s rules and guidelines. Kvanted is also a member of the Finnish Startup community

(FSC).

APPROACH TO RESPONSIBLE INVESTMENT

The Fund is carefully managed, and sustainability risks are taken into consideration when making investments. Kvanted makes the following disclosure in accordance with the Sustainable Finance Disclosure Regulation.

Integration of sustainability risks in the investment decision-making process

(SFDR art. 3(1))

Kvanted integrates sustainability risks into its investment decision-making process in accordance with Article 3(1) of the SFDR. Sustainability risks are defined as environmental, social, or governance events or conditions that, if they occur, could cause an actual or potential material negative impact on the value of an investment.

In the initial screening, potential investments are reviewed against Kvanted’s exclusion list. The firm does not invest in companies operating in fossil fuels, weapons, pornography, alcohol, tobacco, or gambling industries, or in companies involved in illegal activities. Kvanted also pays special attention to identifying issues that are not remediable, such as unethical management practices. Reputational risks are carefully assessed, and the firm avoids investing in or partnering with entities that do not share its ethical standards.

During the pre-investment phase, Kvanted conducts detailed due diligence, and, using sustainability data collected through an investee company questionnaire, applies a proprietary sustainability assessment to evaluate potential risks. This ensures alignment with Kvanted’s responsible investing guidelines and allows for the integration of relevant sustainability factors into the investment terms, as relevant.

The assessment helps identify gaps in sustainability risk management, forming the basis for target setting and post-investment monitoring. Kvanted practices active ownership and keeps sustainability risk management on board’s agenda, supported by annual sustainability evaluations. The General Partner oversees the Fund’s sustainability efforts, and Kvanted Oy’s Board of Directors is regularly informed.

Statement of no consideration of adverse impacts on sustainability factors

(SFDR art. 4(1)(a))

While Kvanted does integrate sustainability risks in the investment decision-making process, Kvanted does not consider the adverse impacts of its investment decisions on sustainability factors under Article 4(1)(a) of Regulation (EU) 2019/2088 (the SFDR) for the time being.

The main reason for this is the lack of clear guidance and detailed requirements on the consideration of adverse impacts of investment decisions on sustainability factors due to the incomplete regulation. Considering that the portfolio of the Fund will consist of several minority investments in unlisted early-stage companies, it is uncertain whether sufficiently reliable data exists or can be obtained with respect to each portfolio company.

Kvanted tailors its sustainability approach to each portfolio company’s unique situation. By holding boardpositions and conducting annual sustainability evaluations, Kvanted actively identifies opportunities and risks. The focus on key sustainability areas allows for maximizing the impact on sustainability. Once there are more detailed guidelines and best practices regarding measuring, considering, and reporting adverse impacts on sustainability factors, Kvanted intends to reconsider its approach.

Transparency of remuneration policies in relation to the integration of sustainability risks (SFDR art. 5) Under SFDR Article 5, financial market participants shall include in their remuneration policies information on how those policies are consistent with the integration of sustainability risks and shall publish that information on their websites. Kvanted’s remuneration policy does not encourage investment decision-making in which higher returns are expected but the possible result is the realization of sustainability risks. Kvanted’s investment professionals, who manage the investments against compensation, must follow Kvanted’s internal policies and procedures related to sustainability. Transparency of the promotion of environmental or social characteristics on websites (SFDR art. 10)

Under SFDR Article 10, financial market participants shall publish and maintain on their websites certain information for each financial product referred to in SFDR Article 8(1). The Fund is classified as an Article 8 fund, i.e. a financial product that promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices.

Article 8 product disclosures, as requested in Article 10, are included in the fund documentation and provided annually to investors with the annual report. Kvanted will disclose any significant findings related to negative impacts on sustainability factors in its annual report should they occur.

SUSTAINABILITY-RELATED DISCLOSURES

Kvanted Fund I Ky

CONTACT FOR FUND AND MEDIA RELATED INQUIRIES

Maria Wasastjerna, maria@kvanted.com

Kvanted Fund I Ky

00120 Helsinki

www.kvanted.com