Introduction Of Faber
The startup landscape in the Iberian Peninsula — encompassing Spain and Portugal — has been a powerhouse of growth and innovation in recent years. According to Dealroom, Spanish startups alone surpassed €100 billion in value in 2023, with €2.2 billion invested across 850 funding rounds. Alongside Spain, Portugal’s startup scene has flourished with venture capital (VC) firms like Shilling, Indico, Armilar, and Bynd driving the momentum. This surge in entrepreneurial activity has positioned the region as a thriving hub for tech startups and investment. Now, Faber, a Lisbon-based VC firm, has launched its third fund, demonstrating its ongoing commitment to fostering this ecosystem.
Table of Contents
Latest Fund Aims to Raise €60 Million
Faber’s new fund, Faber Tech Fund III, recently marked its first close, raising €31 million (approximately $33.9 million). Supported by key partners like the European Investment Fund (EIF), NATO Innovation Fund, Portugal’s Caixa Capital, and several family offices, the fund aims to reach a total of €60 million (around $64.2 million). The goal? To propel early-stage startups in deep tech, artificial intelligence (AI), robotics, and biotechnology across Portugal, Spain, and the Netherlands.
According to Alexandre Barbosa, managing partner at It, the focus is on pre-seed and seed-stage companies specializing in “deep tech, AI/ML, and data-related technologies.” The initial investments are set to target emerging fields such as photonic and analog chip design, as well as synthetic biology. “We’re looking at technologies that can redefine industries and position Europe as a global leader in science and innovation,” Barbosa shared.
Targeting Southern Europe’s Unique Talent Pool
The new fund capitalizes on the increasing influx of scientific and technical talent into Southern Europe, driven by factors like quality education, government incentives, and high participation in global exchange programs. Both Spain and Portugal rank among the top five destinations for such programs, drawing a pool of talent that brings new ideas and expertise to the region.
For investors, this talent influx strengthens the region’s potential as a center for cutting-edge innovation. “Maintaining Europe’s technological edge is critical to ensuring the region’s security and resilience,” remarked Chris O’Connor, managing partner of the NATO Innovation Fund, highlighting the strategic significance of technological leadership in Europe.
Expanding Portfolio
It latest venture represents an evolution of its previous successes. Its second fund raised approximately $24 million and focused on early-stage startups, while its “blue” fund, Faber Blue Pioneers, supports advancements in ocean technologies. Through these efforts, Faber has built a diverse portfolio, backing notable companies like Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel, and Microharvest. Each of these companies embodies Faber’s mission to invest in high-impact solutions that address complex challenges across health, tech, and environmental sectors.
The Road Ahead for Iberian Tech Ecosystem
As Faber looks to complete its fundraising for Faber Tech Fund III, the broader Iberian tech ecosystem stands to gain from this new capital injection, encouraging more founders to tackle ambitious tech challenges. With its strategic focus on deep tech and AI, Faber is well-positioned to support the next wave of disruptive companies in Europe, while ensuring that the region remains a competitive force in the global tech landscape.
Faber’s initiative not only highlights the region’s growing potential but also strengthens the collaborative environment among investors and startups. As Spain and Portugal continue to evolve as innovation hubs, funds like Faber Tech Fund III play a critical role in building the technological and entrepreneurial backbone of Southern Europe.
In sum, with its substantial new fund, Faber is doubling down on early-stage, high-potential companies that push the boundaries of what’s possible, all while contributing to the resilience and dynamism of the Iberian tech ecosystem.
