Portuguese VC Índico Capital Partners Unveils €125 Million Fund III
Portuguese VC Índico Capital Partners Unveils €125 Million Fund III
Lisbon-based venture capital firm Índico Capital Partners has announced the launch of its latest fund, Indico VC Fund III. With a target capital of €125 million, the fund is designed to support early-stage technology companies across Portugal, Spain, and Italy.
The European Investment Fund (EIF), a prominent arm of the European Investment Bank Group, has committed €30 million as the anchor investment for this fund. This backing reflects the EIF’s continued support for Índico, having been a major limited partner in the firm’s previous funds.
Backing Innovation in Southern Europe
Stephan de Moraes, Managing General Partner at Índico, shared his enthusiasm for this milestone, stating: "We are incredibly proud to launch the third generation of Índico funds, with Indico VC Fund III. Securing the anchor commitment from the EIF, our major LPs in previous funds, shows strong institutional support for Índico’s strategy of backing world-class teams creating global category winners and is a strong validation of our track record and strategy to focus on Enterprise SaaS, AI, and DeepTech across Southern Europe and its diaspora."
Indico VC Fund III arrives during a period of heightened activity in Europe’s venture capital landscape, particularly in technology-driven sectors such as DeepTech, artificial intelligence (AI), and software-as-a-service (SaaS).
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Part of a Broader Trend in European VC
The fund launch aligns with recent trends of increasing investment in high-innovation, tech-enabled industries within Europe. Several large-scale funding moves occurred this year, including Armilar Venture Partners’ first tranche of €120 million for its Fund IV, which targets DeepTech and digital transformation ventures in Iberia and Europe. Similarly, Future Energy Ventures closed its Fund II at €205 million, focusing on energy-tech solutions across Europe.
This context underscores the broader momentum Índico seeks to leverage. Marjut Falkstedt, Chief Executive of the EIF, emphasised the importance of supporting technological advancement in the region, noting: "We are excited to join forces with Índico Capital Partners to support the vibrant ecosystem of technological innovators in Portugal, Spain and Italy. Through this operation, the EIF will support equity investments in companies that are making a difference in AI, deeptech and blue economy."
Focused Strategy and Proven Track Record
Since its founding in 2017, Índico Capital Partners has cemented its role as a key player in the European venture capital ecosystem. To date, the firm manages over €240 million in assets across five funds and has supported 53 companies, which collectively have raised more than €2.5 billion. The firm’s investment focus spans DeepTech, SaaS, AI, SpaceTech, FinTech, cybersecurity, and ocean-related technologies.
Indico VC Fund III will primarily target startups from Southern Europe, with a focus on Portugal, Spain, and Italy. The fund will also seek to invest in companies from these countries that are based in international markets such as the US and UK. Investment amounts will typically range between €500,000 and €10 million, from Seed to Series B funding rounds.
Speaking about the fund’s strategic goals, de Moraes added: "We are strategically positioned to identify and scale the best global companies, leveraging the region’s top talent and bringing them into the international capital spotlight. We believe that by providing smart capital and hands-on support, we are truly shaping the next wave of European technological leadership at a global scale."
The launch of Indico VC Fund III represents not only a significant step for Índico Capital Partners but also a testament to the growing confidence in Europe’s tech innovation ecosystem, particularly in Southern Europe. With the EIF's backing and a clear focus on transformative technologies, this fund is poised to play an important role in shaping the future of European tech leadership.