Spain's FOND-ICO pumps another 194 million euros into the local VC industry

FOND-ICO, the Spanish fund of funds, has pumped nearly €200 million in nine local venture capital funds, which means we can expect an uptick in number of investment deals in the near future.
Spain's FOND-ICO pumps another 194 million euros into the local VC industry

The Spanish government may not be a big fan of local startup entrepreneurs building businesses and act like they should be punished for it, but at least the money hasn't - yet - stopped flowing.

Spain just got a new 194 million euros injection into its venture capital industry through FOND-ICO, the national 'fund of funds'.

Axis, the management company behind it, announced the investment of those 194 million euros into nine private VC funds, out of 23 candidates spread across four categories:

  • Debt funds
    • N+1 (Alteralia Management S.à.r.l)
    • Trea Capital (BTC Investments 2012 S.à.r.l)

The total committed investment for this round is 669 million euros, which brings the total committed investment since late 2013, up to 1.9 billion euros in less than a year.

The previous investment came only seven months ago, and hasn't been deployed yet. We reached out to several of the funds and they confirmed us that the new funds will start operating in 2015.

According to Venture Watch Research (see disclosure below), there's been an increase of 16% in VC investment since 2013, and a whopping 75% since 2012. If we count the most recent deals by Wallapop (5 million euros) and RedBooth (8.8 million euros) this month, the difference rises to 17% since 2013, and this is without counting the FOND-ICO investments.

Monthly Spanish VC Investment 2014

Accumulated Spanish VC Investment 2014

Spanish 2012-2014 VC investment statistics

Disclosure: Venture.Watch Research is a brand from Press42, a company owned by co-founder Alex Barrera.

This recent investments is great news for the Spanish venture capital ecosystem as nearly all the renowned funds in the country have got a piece of the FOND-ICO pie: Adara Ventures (Dec. 2013), Axon Capital (May 2014), Caixa Capital Risc (May 2014), Seaya Ventures (May 2014) and now Inveready (Nov. 2014) and Cabiedes & Partners (Nov. 2014).

As most of the funds haven't been deployed yet, we expect to see a major uptake in deals and total investment during the next few years, starting in early 2015.

Also interesting to note that investments from international VCs in Spanish startups have just reached its highest level ever.

All this is great news for Spain, despite the continuous undermining of the startup ecosystem by the Spanish government in recent times.

Featured image credit: / Shutterstock

Follow the developments in the technology world. What would you like us to deliver to you?
Your subscription registration has been successfully created.