EIF Invests €90 Million to Boost Portugal’s Tech Start-ups and Strengthen Cybersecurity

EIF Invests €90 Million to Boost Portugal’s Tech Start-ups and Strengthen Cybersecurity

(IN BRIEF) The European Investment Fund (EIF) has committed €90 million to three venture capital funds focused on accelerating the growth of tech start-ups in Portugal’s deep tech and cybersecurity sectors. This investment, announced at the 2024 Web Summit in Lisbon, will enable the funds—Armilar Venture Partners IV, Faber Tech III, and 33N Cybersecurity and Infrastructure Software Fund—to leverage over €400 million in capital. The EIF’s funding supports Portugal’s role as a growing tech hub and aligns with the EU’s InvestEU programme, which aims to mobilize over €372 billion in investments for sustainable development. The funds will target early-stage and growth-stage companies, fostering innovation in key technology fields.

(PRESS RELEASE) LUXEMBOURG, 13-Nov-2024 — /EuropaWire/ — The European Investment Fund (EIF) has announced a €90 million investment into three venture capital funds aimed at boosting start-ups in Portugal’s deep tech and cybersecurity sectors. This pledge, made at the 2024 Web Summit in Lisbon, will enable the funds—Armilar Venture Partners IV, Faber Tech III, and the 33N Cybersecurity and Infrastructure Software Fund—to leverage over €400 million in capital to support the growth of tech start-ups.

These new investments underscore the growing international confidence in Portugal as a key player in the global tech landscape and highlight the EIF’s role in fostering technological innovation across Europe. The funding will assist Portugal’s entrepreneurial ecosystem, helping to drive both the digital and green transitions that are essential for sustainable economic growth.

Pedro Reis, Portugal’s Minister for the Economy, expressed his enthusiasm about the investments, emphasizing the crucial role that start-ups and scale-ups play in achieving ambitious sustainability goals. “Our venture capital funds are central to financing disruptive innovations that are vital to reaching these goals,” he said.

EIF Chief Executive Marjut Falkstedt also shared her excitement, stating, “These venture capital funds are essential in accelerating the growth of tech start-ups and enhancing digital security across Europe. Our collaboration with both local and international partners is critical to building a resilient and thriving technology ecosystem.”

The EIF’s commitment is part of the InvestEU programme, a European Union initiative designed to mobilize over €372 billion in investments between 2021 and 2027.

The 33N Cybersecurity and Infrastructure Software Fund has already made four investments and is continuing to raise funds with a target of €150 million. The fund focuses on cybersecurity companies at the global growth stage, with particular attention to the European, UK, Israeli, and US markets.

Faber Tech III, another fund in the EIF’s portfolio, specializes in early-stage investments in science-based companies, having previously invested in over 50 deep-tech start-ups. This new fund will support start-ups in applied sciences, including AI, robotics, data infrastructure, and new computing technologies, with a primary focus on Southern Europe and selective investments across Europe.

Armilar Venture Partners, one of Portugal’s most established venture capital firms, will use its new fund, Armilar Venture Partners IV, to mobilize between €120 million and €250 million. This fund will focus on start-ups across diverse sectors, from AI and cybersecurity to HealthTech and SpaceTech, with an emphasis on Portugal, Spain, and the broader European market.

As part of the European Investment Bank Group, the EIF’s mission is to help small and medium-sized enterprises (SMEs) across Europe access the financing they need to grow. This investment reinforces the EIF’s commitment to supporting innovation, entrepreneurship, and sustainable growth across the continent.

The InvestEU programme, through its three components—the InvestEU Fund, Advisory Hub, and Portal—simplifies and strengthens investment opportunities for European projects, making them more efficient and flexible.

Additional information:

The EIF is part of the European Investment Bank Group. Its core mission is to support micro, small and medium-sized enterprises in Europe by helping them access finance. The EIF designs and develops venture capital, guarantee and microfinancing instruments that are specifically aimed at this market segment. In this capacity, the EIF fosters the EU objectives of supporting innovation, research and development, entrepreneurship, growth, and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging private and public funds in support of Europe’s sustainable recovery. It helps to mobilise private investments for the European Union’s top policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together the multitude of earlier EU financial instruments, making access to finance and investments in European companies and projects simpler, more efficient and more flexible. The InvestEU programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects, benefiting from the protection of the EU budget guarantee of €26.2 billion. The full budgetary guarantee backs the investment projects of the implementing partners, increasing their risk-bearing capacity and thus mobilising at least €372 billion of additional investment.

Media Contacts:

EIF

Maite Cordero | m.corderomunoz@eib.org | Tel.: +34 606 66 82 62
André Milheiro | a.milheiro@ext.eib.org | Tel.: +351 91 748 96 82
Website: www.eib.org/press | Press Office: +352 4379 21000 – press@eib.org

SOURCE: European Investment Fund