Kembara Fund I FCR Secures €350 Million EIF Commitment to Drive Deep Tech and Climate Innovation

Kembara Fund I FCR Secures €350 Million EIF Commitment to Drive Deep Tech and Climate Innovation

(IN BRIEF) Kembara Fund I FCR, a €1 billion deep tech and climate-focused fund managed by Spain-based Alma Mundi Ventures, has secured a €350 million commitment from the European Investment Fund (EIF). As the first Spanish fund to be selected under the European Tech Champion Initiative (ETCI), Kembara aims to support growth-stage European startups, particularly in Germany, Spain, France, and Sweden. ETCI, which has mobilized €10 billion in public and private resources since 2023, aims to bolster Europe’s strategic autonomy in sectors like AI, quantum computing, and cleantech. This investment marks a significant step in nurturing Europe’s tech ecosystem and driving digital transformation.

(PRESS RELEASE) LUXEMBOURG, 8-Jul-2024 — /EuropaWire/ —  The European Investment Fund (EIF), part of the European Investment Bank Group and established to support Europe’s micro, small and medium-sized enterprises (SMEs), is pleased to announce a €350 million commitment to Kembara Fund I FCR, a groundbreaking €1 billion fund focused on deep tech and climate innovation. Managed by Alma Mundi Ventures SGEIC (Mundi Ventures) based in Spain, Kembara Fund I FCR addresses the critical funding needs of growth-stage startups in Europe. This commitment marks the first ETCI investment in a Spain-based fund, underscoring a pivotal moment in Europe’s deep tech funding landscape.

Kembara Fund I FCR has been chosen as part of the strategic European Tech Champion Initiative (ETCI), an initiative that has mobilized €10 billion in public and private resources to support investment in European tech champions since its launch in 2023. ETCI aims to meet the financing needs of European tech scale-ups, preventing them from relocating overseas and enhancing Europe’s strategic autonomy and competitiveness. Benefiting sectors include cybersecurity, artificial intelligence, quantum technologies, life sciences, deep tech, cleantech, and digital technologies.

“The ETCI initiative was conceived to provide significant backing to large European funds, enabling them to support future European champions with the scale-up financing they need,” commented Marjut Falkstedt, EIF Chief Executive. “We are delighted to support Kembara, and through it, aspiring tech entrepreneurs all over Europe. The ETCI is now really taking shape, making sure that bright ideas can not only start up but also grow and flourish right here in Europe.”

Kembara will make equity investments in European deep tech and climate companies at the growth stage (Series B and C), predominantly in Germany, Spain, France, and Sweden, as well as other EU Member States. The EIF’s role as the anchor investor in Kembara is crucial, helping the fund reach its €1 billion target through additional investments. Kembara represents a unique offering within ETCI, being its first investment in a Spanish fund with a strong commitment to deep tech and climate. This fosters greater diversity in financing options for European scale-ups.

Javier Santiso, CEO & founder of Mundi Ventures and co-founding partner of Kembara, highlighted the fund’s mission: “We are honored to be chosen by the EIF as one of the platforms to scale Europe’s deep tech and climate champions. Incremental changes won’t cut it. We are here to back the most ambitious deep tech entrepreneurs who want to solve humanity’s most pressing challenges, particularly climate change.”

Europe is currently experiencing an unprecedented wave of innovation driven by frontier technologies such as AI, quantum computing, and synthetic biology. With world-class research and talent, Europe is poised to lead in deep tech and climate innovation. However, substantial investment is necessary to support the growth of its most promising startups.

ETCI-backed funds have already made significant investments in European startups with high growth potential, including two Spanish companies. Kembara will support startups with strong intellectual property, combining scientific and engineering breakthroughs, including complex hardware and capital-intensive businesses, and focusing on frontier technologies such as AI, the future of computing, robotics, space tech, advanced materials, and next-generation energy systems. These technology areas are vital for the EU’s strategic autonomy and economic growth.

Since its launch, ETCI has created a positive dynamic in the European investor market and the tech ecosystem. The initiative has invested in eight different scale-up technology funds, including Kembara Fund I, Atomico Growth VI, FSI II, and Keensight Nova VI. To date, ETCI has mobilized €10 billion in public and private resources to support investment in fast-growing high-tech companies, investing in sectors such as cybersecurity, AI, financial technologies, biotechnology, and healthcare.

In Spain, aside from its investment in Kembara, ETCI-backed funds have invested approximately €240 million in two growth-phase Spanish companies, Factorial and Inke, representing around 20% of ETCI’s investments in scale-up companies to date.

The European Tech Champions Initiative is becoming instrumental in nurturing Europe’s tech ecosystem, fostering collaboration, and fueling the growth of transformative ventures. Through strategic investments and partnerships, ETCI will continue empowering the next generation of European tech champions, shaping the digital future of Europe.

Background information

The European Tech Champions Initiative (ETCI) is a programme dedicated to supporting technological innovation, driving growth, and fostering the development of Europe’s tech ecosystem. Through strategic investments, partnerships, and mentorship, ETCI – managed by the European Investment Fund – aims to empower the next generation of European tech champions, shaping the future of technology and propelling Europe’s digital transformation.

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinances instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

Kembara Fund I is raising €1 billion to build Europe’s leading Deep Tech growth platform. It will lead Series B and C rounds in the most promising European Deep Tech and climate companies. Kembara backs entrepreneurs who combine science and engineering breakthroughs to solve some of the world’s most pressing problems with a focus on Climate. The fund is led by industry veterans with a strong track record of scaling tech and Deep Tech companies. Kembara will leverage Europe’s strengths and work with the very best to build European global category leaders in Deep Tech and Climate. The team is committed to helping Europe realise its full potential and positively impact the World.

Mundi Ventures. Founded in 2015, Mundi Ventures is a Venture Capital firm headquartered in Madrid with €500 million in assets under management. It consists of an international team of almost 25 people from 17 different nationalities, a unique case in the venture capital world in continental Europe, where fund managers tend to be more local. Mundi Ventures has invested in 70 tech companies throughout Europe, including Paris, London, Berlin, Amsterdam, Helsinki and Stockholm, with its specific thematic funds. Among its investments are DeepTech companies like Submer (Barcelona and Clarity (New York) and unicorns like Job&Talent (Madrid), Klarna (Stockholm) and Bolttech (Singapore).

Mundi Ventures’ Vth Fund, called Kembara, is managed by a specialist team dedicated to this mission.

Press contacts

EIF
Maite Cordero  | m.corderomunoz@eib.org, tel.: +34 606 66 82 62
Serena Sertore | s.sertore@eib.org | tel.: +352437970859
Website: wwww.eif.org/ | Press Office: +352 4379 21000 — press@eib.org

Mundi Ventures
Javier Santiso | javier@mundiventures.com

SOURCE: European Investment Fund