Southern Europe’s startup ecosystem has long suffered from an imbalance between talent generation and capital availability. Indico VC Fund III, launched with a €30 million anchor investment from the European Investment Fund and targeting a total size of €125 million, aims to correct that structural gap and could prove pivotal in turning the region into a durable base for AI and deep-tech ventures.
Focused on investments from Seed through Series B, the fund will back startups across enterprise SaaS, AI, deep-tech, spacetech, oceantech, fintech, and blockchain/Web3. Its geographic emphasis spans Portugal, Spain, and Italy, while also supporting founders from these markets who are building companies abroad, including in the U.S. and UK. The model extends beyond capital alone, combining funding with hands-on operational support designed to help ventures overcome the scaling constraints that have historically limited regional growth.
EIF’s participation carries strategic weight. As the equity arm of the European Investment Bank Group, its backing aligns with the EIB’s 2024-2027 roadmap focused on innovation, digitalisation, and technological leadership, and sits within the broader InvestEU framework aimed at mobilising large-scale investment into priority sectors. This is institutional capital being deployed precisely where Europe needs it most, early-stage companies with ambitions to compete globally.
Indico brings a meaningful track record to this effort. The firm now manages over €240 million across its funds and has supported 53 companies that have collectively raised more than €2.5 billion, including four unicorn successes. That performance reinforces the case that Southern European startups can reach international scale when adequate capital and guidance are in place.
At a time when Europe is searching for credible ways to expand its AI and deep-tech leadership beyond traditional tech hubs, Indico VC Fund III stands out as more than a routine fund launch. It represents a deliberate push to transform regional engineering strength into globally competitive technology companies.
