The startup scene in the Iberian Peninsula, encompassing Spain and Portugal, has been thriving in recent years. Spanish startups have reached a value of over €100 billion in 2023, with €2.2 billion invested in about 850 rounds. Meanwhile, Portugal has seen the rise of VC firms like Shilling, Indico, Armilar, Bynd, and more.

Faber, a venture firm based in Lisbon, is doubling down on the region with the launch of its third fund. The fund has already secured €31 million in investments, with a goal of raising a total of €60 million. The fund is supported by the European Investment Fund, the NATO Innovation Fund, Portugal’s Caixa Capital, and family offices.

Faber Tech Fund III will focus on investing in pre-seed and seed-stage startups in deep tech, AI, robotics, and biotech across Southern Europe, as well as other European countries. Managing partner Alexandre Barbosa highlighted the fund’s interest in technologies such as photonic chips, analog chip design, and synthetic biology. The firm believes that Southern Europe is attracting scientific and technical talent, making it a key region for technological innovation.

Chris O’Connor, managing partner of the NATO Innovation Fund, emphasized the importance of maintaining Europe’s technological edge for security and resilience. Faber’s previous fund raised $24 million and the firm also operates a “blue” fund, Faber Blue Pioneers, focusing on ocean technologies. Notable portfolio companies include Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel, and MicroHarvest.