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Faber launches third VC fund with $34M first close, aims for $64M | TechCrunch

Nov 06, 2024 - techcrunch.com
The startup ecosystem in the Iberian Peninsula, encompassing Spain and Portugal, has seen significant growth in recent years. Spanish startups surpassed a value of €100 billion in 2023, with venture investment of €2.2 billion across 850 rounds. Portugal has also seen the emergence of numerous VC firms. The latest to invest in the region is Lisbon-based venture firm Faber, which recently launched its third fund, Faber Tech Fund III, with a first close of €31 million. The fund is backed by the European Investment Fund, the NATO Innovation Fund, Portugal’s Caixa Capital, and family offices, and aims to raise a total of €60 million.

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. The fund will particularly focus on deep tech, AI/ML, and data-related technologies, with the first investments planned in photonic chips, analog chip design, and synthetic biology. The firm believes that the flow of scientific and technical talent to Southern Europe supports their investment thesis. Faber's previous fund raised about $24 million, and the firm also invests in ocean technologies through its Faber Blue Pioneers fund.

Key takeaways:

  • The startup ecosystem in the Iberian Peninsula, including Spain and Portugal, has been thriving in recent years, with the value of Spanish startups surpassing €100 billion in 2023.
  • Lisbon-based venture firm Faber has launched its third fund, with a first close of €31 million, and aims to raise a total of €60 million. The fund is supported by the European Investment Fund, the NATO Innovation Fund, Portugal’s Caixa Capital, and family offices.
  • The new fund, 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, with a particular focus on deep tech, AI/ML and data-related technologies.
  • Faber's previous fund raised about $24 million, and the firm also invests in ocean technologies through its "blue" fund, Faber Blue Pioneers. Some of its most notable portfolio companies include Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel and Microharvest.
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