The startup ecosystem in the Iberian Peninsula — the region encompassing Spain and Portugal — has been on a roll the last couple of years. The value of Spanish startups surpassed €100 billion in 2023, according to Dealroom data, with venture investment of €2.2 billion across some 850 rounds. Meanwhile, Portugal has produced a slew of VC firms such as Shilling, Indico, Armilar, Bynd and more.
Lisbon-based venture firm Faber has become the latest to double down on the region — it recently launched its third fund, marking a first close of €31 million (about $33.9 million). The fund is anchored by the European Investment Fund (EIF) and has received major contributions from the NATO Innovation Fund and Portugal’s Caixa Capital, as well as family offices. It’s aiming to raise €60 million (about $64.2 million) in total.
The new fund, titled 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.
Alexandre Barbosa, managing partner at Faber, told TechCrunch that the new fund is meant to focus particularly on deep tech, AI/ML and data-related technologies. “The first investments are lined up in photonic chips, analog chip design and synthetic biology,” he said.
The firm’s thesis, Barbosa said, is backed by the fact that scientific and technical talent continues to flow towards Southern Europe, especially given that Portugal and Spain are among the top five destinations for exchange programs.
“Maintaining Europe’s technological edge is critical to ensuring the region’s 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 ocean technologies. Its most notable portfolio companies include Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel and Microharvest.