The Regional Government awards three new venture capital funds totaling €50.25 million.
The Ministry of Economic Transformation, Industry, Knowledge and Universities, through the Andalusian Agency for Innovation and Development (Agencia IDEA), has awarded three new venture capital funds, which will have a total value of €50.25 million, co-financed with European Union ERDF funds. This amount exceeds by €4.7 million the required allocation for their award, as highlighted by the Andalusian government department led by Rogelio Velasco.

The Minister emphasized the importance of these investment instruments, “which will be managed by specialized companies.” On one hand, he stated, “Andalusia aligns with the European Commission in promoting these financial instruments, which provide the productive fabric with a clear multiplier effect.” Venture capital funds, he added, “also have a strong capacity to combine public and private resources.”

“With this policy, the regional government promotes Andalusia’s productive fabric, particularly the industrial sector,” Velasco explained, emphasizing that “new companies will be able to develop rapidly in their initial phase, contributing to economic diversification and strengtheni

Return-oriented funds and focus on innovative entrepreneurs
According to the Minister of Economic Transformation, “venture capital funds have a return component, which allows for a more sustainable system of support.” Specifically, regarding the Startup Venture Capital Fund, “we are specifically targeting the ‘opportunity’ entrepreneur, who seeks to bring an innovative idea to market and contributes to improving the region’s productive model.” “In sum, these funds will contribute to better financing for companies and connecting with national and international investors,” Velasco emphasized.

One fund for startups and two for business expansion
The first of these funds will focus on startups, and the remaining two on business expansion. These investment instruments are part of the Andalusian Public Fund for Business Financing and Economic Development, in which Agencia IDEA acts as the financial agent.

The Startup Venture Capital Fund will be managed by Quadriga Asset Managers. It comprises a public contribution of €8 million and a private participation of €2.10 million (the minimum required for its establishment was €1 million). This is seed capital, intended for SMEs and micro-enterprises in an early stage, with no more than seven years of activity. Eligible companies must be located in Andalusia and not be in financial distress.

To qualify for this fund, companies must be innovative, with business projects aligned with the innovation and research strategies of the Andalusian government.

The financial instruments primarily used in this case are equity participation and participative loans. The maximum amount per investment round will be €600,000 annually, with a cap of €200,000 per milestone or disbursement. In any case, a single beneficiary may not receive more than 10% of the total committed fund assets.

Expansion Venture Capital Funds
The line for the Expansion Venture Capital Fund includes the allocation of two lots to cover a broader spectrum of project types and bidders. On one hand, a €19 million public contribution fund has been awarded to Axon Partners Group, which contributes €6 million to the fund (the minimum private contribution was €5 million)

Alter Capital manages the second expansion fund
On the other hand, the €10 million public contribution fund has been awarded to Alter Capital Desarrollo, which contributes €5.15 million (compared to the minimum required private contribution of €2.5 million).

These funds will be allocated to SMEs and micro-enterprises in an early expansion phase (companies with initiated projects, prepared for a substantial investment round, even if not yet generating revenue). As with the previous fund, companies must be based in Andalusia, not in crisis, and have projects aligned with the innovation and research strategies of the Andalusian government.

Through equity participations or participative loans as the main financing instruments, the total risk exposure per recipient may not exceed 15% of the fund’s assets, ensuring portfolio diversification. No funding round or series will exceed €2 million.

The timeframe for making investments through these three venture capital funds will be three years from their establishment, with until the end of 2029 to return the investments and complete liquidation.

These financial intermediaries will have among their activities the constitution and management of the fund, will attract private investors as participants in the fund, will detect and analyze investment projects and will control the correct execution of the operations.

Awardees of Venture Capital Funds
Founded in 2007, Quadriga Asset Managers is headquartered in Madrid and New York (with an additional office to be established in Andalusia), invests globally, and specializes in alternative financing with a multi-asset investment strategy. It currently manages over €1.5 billion across more than 10 different funds.

Axon Partners Group: global investor specialized in technology
Axon Partners Group, founded in 2006, is headquartered in Madrid and operates globally with offices in Andalusia, Madrid, Bogotá, Mexico, Istanbul, and Riyadh. It specializes in technology (expansion phase) and has invested in more than 41 projects to date.

Alter Capital Desarrollo, founded in 2000 and based in Seville, specializes in the Spanish ‘low market’ (transaction sizes between €1 million and €4 million). Since its establishment, it has carried out 35 transactions totaling €95 million.

Fuente: https://www.abc.es/sevilla/economia/sevi-junta-andalucia-pone-marcha-tres-fondos- capital-riesgo-5025-millones-202102221819_noticia.html