The startup ecosystem in the Iberian Peninsula (the region that includes Spain and Portugal) has been booming in recent years. According to Dealroom data, the value of Spanish startups will exceed 100 billion euros in 2023, with around 850 rounds of venture investment amounting to 2.2 billion euros. On the other hand, Portugal has produced a large number of VC companies such as Schilling, Indico, Almirah, and Bind.
Lisbon-based venture firm Faber has become the latest company to double its investment in the region. The firm recently launched its third fund, with an initial close of 31 million euros (approximately $33.9 million). The fund is supported by the European Investment Fund (EIF) and receives significant contributions from the NATO Innovation Fund, Portugal's Caixa Capital and family offices. The company aims to raise a total of 60 million euros (approximately $64.2 million).
The new fund, named Faber Tech Fund III, will target pre-seed and seed stage startups in deep tech, AI, robotics and biotech across Portugal, Spain and the Netherlands.
Faber managing partner Alexandre Barbosa told TechCrunch that the new fund aims to specifically focus on deep tech, AI/ML and data-related technologies. “Initial investments are planned for photonic chips, analog chip design and synthetic biology,” he said.
Barbosa said the company's claims are supported by the fact that science and technology talent continues to flow to southern Europe, especially considering that Portugal and Spain are among the top five destinations for exchange programs. Ta.
“Maintaining Europe's technological advantage is critical to ensuring regional security and resilience,” Chris O'Connor, managing partner of the NATO Innovation Fund, said in a statement.
Faber's last fund raised about $24 million, and the firm also has a “blue” fund, Faber Blue Pioneers, through which it invests in marine technology. Some of the most notable portfolio companies include Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel, and Microharvest.