In a significant funding development for the European tech ecosystem, Portuguese venture capital firm Índico Capital Partners has announced the launch of its €125 million Fund III, with the European Investment Fund (EIF) as the anchor investor. This development stands out as a critical moment for startups and entrepreneurs, particularly in Southern Europe, as it provides crucial capital injection into the ecosystem and sets the stage for significant innovation.
As a seasoned serial entrepreneur with deep experience in Europe’s tech scene, I view this announcement as more than just another fund launch. Índico’s commitment to backing early-stage technology companies in Portugal, Spain, and Italy, alongside their diaspora working globally, sends a strong message about the growing recognition of latent potential in these markets.
The Main Takeaways from the €125 Million Fund III Launch
What makes this fund unique?
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Backing from EIF:
The fund’s €30 million anchor investment from the European Investment Fund (EIF) demonstrates robust EU institutional support. EIF funding is often a signal of the fund’s strategic alignment with EU priorities, particularly in fostering innovation, digital transformation, and sustainable growth. -
Geographic Focus:
Índico targets startups in Southern Europe, emphasizing Portugal, Spain, and Italy, while also extending global support to founders from these regions operating in markets like the U.S. or the UK. This approach bridges local innovation to global markets. -
Sectors to Watch:
- DeepTech
- Artificial Intelligence (AI)
- Enterprise SaaS
- FinTech
- Cybersecurity
- Blue Economy
- SpaceTech
With a ticket size ranging from €500,000 to €10 million, seed to Series B rounds in these fields stand to benefit immensely.
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Aligning with EU Priorities:
The fund also aligns with EU programs like InvestEU, with broader implications for “blue” sustainable innovation, a focus I believe reflects a growing awareness of green economy’s intersection with tech innovation.
Why This Fund Launch is Vital to Entrepreneurs in the Region
Entrepreneurs in Southern Europe often face specific challenges that this fund can help overcome:
- Access to Capital: Despite Europe’s growing presence in the global venture capital space, much of the funding goes to established hubs like Berlin, Paris, and Stockholm. This initiative redistributes capital flows to underserved regions.
- Stronger Global Representation: Many Southern European founders struggle to establish themselves on the world stage. Through Índico’s global network, this fund aids startups in scaling internationally.
- Support for High-Risk Innovations: DeepTech and AI require heavy upfront investments due to long R&D cycles. Having a specialized backer like Índico mitigates this financial barrier for entrepreneurs.
For founders, this is a clarion call to refine your pitch decks, align with the fund’s preferred sectors, and prepare to showcase how your innovation can contribute to building global category leaders.
A Closer Look at the Numbers
As of now, Índico Capital Partners manages over €240 million in assets, spread across six funds. Their portfolio companies have collectively raised over €2.5 billion, and demonstrated Índico’s ability to drive ambitious ventures forward. The investment strategy thus far has yielded 53 funded startups across various sectors, indicative of their focus on impactful investments.
Given that 85% of startups using funds backed by EIF investment reported milestones around product launches or scaling efforts within 12 months (from European VC reports in 2023), I anticipate a wave of transformative regional startups emerging from this new fund within the next year.
Advice for Entrepreneurs Looking to Leverage This Opportunity
- Align Proposal with Fund Priorities: Focus on how your company fits into one of their preferred sectors. Highlight scalability, international market potential, and innovation.
- Highlight ESG factors: With investments aligned to sustainability in areas like the blue economy, demonstrating environmental impact serves as a key differentiator.
- Be Early: Funds like this quickly build robust pipelines. If your startup has a compelling case, reach out during the earliest stages of the fund to enhance your chances.
- Showcase Deep Tech and AI’s Transformative Potential: Investors like Índico are willing to tackle risk for breakthrough innovations. Your pitch should emphasize long-term, scalable solutions.
For a guide on perfecting your pitch deck, you might find resources from Y Combinator Startup Library immensely helpful.
Common Mistakes Startups Should Avoid When Approaching VCs
While opportunities abound, here are some pitfalls to avoid:
- Overestimating Market Position: Be realistic and data-driven about your market share and growth projections.
- Lacking Product-Market Fit: Índico emphasizes innovation, but be prepared to demonstrate clear alignment between your product and audience.
- Neglecting Scalability Opportunities: If you can't articulate how you’ll scale globally, this might not be the right fund for you.
- Underestimating Competition: Even in "blue oceans," global markets can quickly saturate. Address competitive strategies transparently.
Future Implications for the European Tech Ecosystem
This fund complements a broader trend in the European investment landscape. According to data from Dealroom earlier this year, Europe saw record-high investments into AI and SpaceTech. With new funds like Índico VC Fund III targeting these niches, we’re poised to see Southern Europe take an increasingly prominent role in global innovation.
Moreover, as an advocate for “gamepreneurship” skills development through my startup Fe/male Switch, I’m optimistic that increased early-stage funding will indirectly promote diversity in tech startups. More funds mean more accessible opportunities, especially for underrepresented groups in STEM.
A Personal Perspective
As a serial entrepreneur navigating funding in Europe for five years, I see this as a direct answer to calls for geographically inclusive investment. For founders in Portugal, Spain, and Italy, luck isn’t the primary factor anymore, strategically managed funds like those from Índico provide the runway for real success.
If you’re an entrepreneur from these regions, my advice is simple: be proactive. Find ways to capitalize on this opportunity and position yourself as the next global category leader. Benchmark companies funded under past Índico funds have generated valuations of €25M+ within 18-24 months. Why shouldn’t yours be next?
In conclusion, Índico Capital Partners' €125 million Fund III signifies hope and opportunity for Europe’s underserved regions. Whether you’re a DeepTech enthusiast or working on blue economy tech, this is your moment to turn your innovation into impact. Considering EIF’s backing and broader EU institutional support for sustainability-focused innovation, this fund is bound to facilitate world-class success stories.
For entrepreneurs who want to learn more, visit Indico Capital Partners and find out what’s possible.
Building businesses in Europe may still be challenging, but with opportunities like these, we inch closer to balancing the global startup ecosystem.
FAQ
1. What is Índico Capital Partners' new fund called?
It is named "Indico VC Fund III" and targets a total size of €125 million. Learn more about Indico Capital Partners
2. Which sectors does the fund prioritize for investment?
The fund focuses on DeepTech, AI, Enterprise SaaS, FinTech, Cybersecurity, Blue Economy, and SpaceTech. Explore sectors targeted by Fund III
3. What is the typical investment size for this fund?
The fund invests between €500,000 and €10 million, from seed to Series B rounds. Discover more about investment sizes
4. Who is the anchor investor for Indico VC Fund III?
The European Investment Fund (EIF) has provided a €30 million anchor commitment. Learn more about EIF’s role in Fund III
5. What markets are the primary focus of Fund III?
The fund emphasizes Portugal, Spain, and Italy but extends funding to founders from these regions operating globally. Explore the geographic focus of Fund III
6. How does this fund align with EU priorities?
Fund III supports EU priorities through innovation, digital transformation, and alignment with InvestEU and sustainability programs. Learn about the fund's alignment with EU policies
7. What achievements has Indico Capital Partners delivered so far?
Indico manages over €240 million in assets across six funds, backing 53 startups, which collectively raised over €2.5 billion. Discover more about Indico's achievements
8. Why is this fund vital for Southern Europe’s entrepreneurs?
It addresses barriers like access to capital, global representation, and support for high-risk innovations like AI and DeepTech. Learn why this fund matters for Southern Europe
9. How can startups attract funding from Índico VC Fund III?
Entrepreneurs should align their proposals to the fund’s preferred sectors, demonstrate scalability, and highlight sustainable impacts. Read how startups can pitch successfully
10. What broad trends does this fund relate to in European VC investments?
Europe’s VC investments are increasingly aligning with AI, SaaS, sustainability, and regional innovation hubs, with Southern Europe gaining more focus. Explore broader European VC trends
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.