Índico Capital Partners, based in Lisbon, has made a significant move to enhance the technology landscape in Southern Europe with the establishment of its sixth fund, the Indico VC Fund III. This fund aims to raise €125 million to finance early-stage startups primarily in Portugal, Spain, and Italy. Notably, the European Investment Fund has pledged €30 million as a cornerstone investor, reflecting confidence in the burgeoning tech ecosystem in the region.
A Strategic Timing for Investment
The launch of the Indico VC Fund III coincides with a growing investor interest in deep technology and artificial intelligence across Europe. In recent months, several substantial funds have been established, highlighting a shift in investor sentiment. For instance, Armilar Venture Partners has successfully raised upwards of €120 million for its new B2B deep technology fund, while Future Energy Ventures has secured €205 million to promote energy technology solutions aimed at supporting the green transition. These financial movements indicate an increasing trust in technology sectors grounded in advanced science and automation, and Indico is strategically positioned to capitalize on this momentum by focusing on markets that possess both untapped potential and rich engineering talent.
Supporting Southern European Innovators
The fund plans to make investments ranging from €500,000 to €10 million, targeting businesses from their seed stages up to Series B funding rounds. Although the primary focus is on companies formed within Portugal, Spain, and Italy, Indico is also open to assisting entrepreneurs from these nations who have expanded their operations to global markets including the US and UK. This dual strategy acknowledges the evolving nature of how Southern European startups are scaling, with many founders opting to establish foreign entities or relocate their headquarters to be nearer to their customer base, while maintaining core research and development activities at home.
By integrating both European and international ecosystems, the fund aspires to eliminate hurdles that often impede the progress of promising companies in capital-intensive sectors such as artificial intelligence, space technology, and cybersecurity.
Deepening Indico’s Impact
Since its inception in 2017, Índico Capital Partners has expanded its influence from a local venture capital firm to a key player in the regional technology investment landscape. Currently, it oversees more than €240 million across five funds and has invested in 53 startups that have collectively raised over €2.5 billion. This demonstrates Indico’s pivotal role in transforming early-stage innovations into scalable businesses. With the introduction of Fund III, the firm emphasizes that Southern Europe is not merely a secondary player in the realm of frontier technologies but rather a competitive hub capable of producing globally relevant software and deep technology firms.
The launch of this latest fund signifies both a continuation of Indico’s mission and a landmark moment for the innovation ecosystems in the Iberian Peninsula and Italy, as investment capital increasingly shifts toward impactful technological advancements. Marjut Falkstedt, the Chief Executive of the EIF, expressed enthusiasm about collaborating with Índico Capital Partners to nurture the dynamic technological innovation ecosystem in Southern Europe. Meanwhile, Stephan de Moraes, Managing General Partner at Indico, highlighted that securing the anchor commitment from the EIF showcases robust institutional support for their strategy focused on backing elite teams that aspire to create global category leaders, reaffirming their commitment to sectors like Enterprise SaaS, artificial intelligence, and deep technology across the region and its diaspora.
Related
