Björk partners with VC firm

Icelandic singer-songwriter Björk has partnered with a Reykjavik-based venture firm to launch a fund that aims to invest in socially and environmentally responsible companies that will ultimately help restore Iceland’s battered economy.

The singer, who is known for her screaming vocals and for being outspoken on politics and the environment, has partnered with Iceland’s Audur Capital, which has named the new fund after her.

The Björk venture fund will be run by Audur Capital, which has put down an initial investment of $826,000. It is seeking investors to participate in the fund, with investments to close by March 2009. Audur Capital focuses on companies run by women or those tailored to female customers.

The small North Atlantic island nation was an early victim of the global financial crisis last year as its currency plunged and its financial system all but collapsed under the weight of billions of dollars of foreign debts incurred by its banks. The top three commercial banks were nationalized.

“The fund will invest in sustainable businesses that create value through the country’s unique resources, spectacular nature, vibrant culture and green energy,” according to Audur Capital’s website.

The website also states that Björk “has become a spokeswoman for innovation, creative thinking and increased diversity in the Icelandic economy.” The 43-year-old is also famously known for wearing a funky “swan dress” at the 2001 Oscars ceremony. The outfit was later auctioned on eBay for charity. —Reuters