Venture-Capital Record Makes Sweden New Impact Hub in Europe

Venture capitalists looking for sustainable startups are plowing more money than ever into Sweden, turning the birth country of climate activist Greta Thunberg into Europe’s biggest magnet for impact investors.

Sweden this year attracted a record $4.5 billion in cash targeting ventures that seek to address at least one of the 17 Sustainable Development Goals, according to data compiled by Dealroom.co. Among the biggest funding rounds were those for battery-maker Northvolt AB and health-care app Kry International AB.

Tove Larsson, general partner at Stockholm-based Norrsken VC, says she’s gearing up for more deals. “Given the enormous traction ...