Andalusia allocates €49M to two new venture funds for scaleups
What's the deal? Andalusia's regional government has allocated €49 million to two new venture capital funds aimed at supporting the expansion of innovative companies through its business agency, Andalucía TRADE. The funds will finance operations of up to €2.5 million per company in the expansion stage.
Why now? The two funds mark a 62% increase in public funding compared with the region's previous venture capital vehicles, according to Carolina España, the acting regional minister of economy. "Our objective is very simple: that no viable, innovative project with the capacity to generate wealth and employment in Andalusia is left without growing," she said.
What's the endgame? The two funds will soon be joined by a third vehicle focused on startups, backing deals of up to €400,000 each. Together, the three funds carry €58.8 million in public money — €49 million for the two expansion funds and €9.8 million for the startup fund.
By the numbers: The government expects the instruments to enable around 60 investment deals and mobilise close to €150 million, factoring in the multiplier effect of private capital.
What's next? Andalucía TRADE is also finalising its FAST fund, backed by €30 million of its own capital and directed at digital and deep tech, biotechnology, and clean tech. It will support strategic initiatives in areas such as microelectronics, photonics, advanced computing, and defence-linked technologies.
The announcement came at the inauguration of new facilities for AGPhotonicsDealroom has a profile for this one. Try Dealroom →, an integrated photonics company, at Málaga TechPark. España used the occasion to frame the funds as tools for firms that currently face greater difficulty accessing public financing.
The signal: España said Andalucía TRADE has incentivised or has in process more than 600 business projects, mobilising over €360 million in under two years. The new venture funds extend a regional push to keep innovative companies financed across each stage of their growth.
Read more: Capital Riesgo
Image credit: Junta de Andalucía
