Faber, a prominent Portuguese venture capital firm, has unveiled its latest initiative aimed at fostering innovation in deep technology: the Faber Tech III fund. With an initial closing of €31 million, this new fund has garnered backing from significant entities, including the European Investment Fund (EIF), the NATO Innovation Fund, and Caixa Capital. Positioned to support early-stage startups, Faber Tech III has a target size of €60 million and seeks to bridge the funding gap for transformative startups across Southern Europe.

Focusing on Deep Tech

The Faber Tech III fund is a testament to Faber's commitment to nurturing the next generation of innovative startups in the realm of deep tech. The fund aims to provide seed capital to startups operating in sectors such as artificial intelligence and AI governance, robotics, computational biology and chemistry, data infrastructure, and next-generation computing. While the primary focus is on the Iberian Peninsula, Faber Tech III also plans to selectively invest in promising ventures throughout Europe and beyond.

In a landscape where specialized seed capital is increasingly vital, Faber’s latest fund addresses the pressing need for financial support for early-stage companies that are pushing the boundaries of technology. With this initiative, Faber aims to empower entrepreneurs who are poised to create significant advancements in their respective fields.

Driving Innovation through Targeted Support

Faber’s commitment to supporting seed-stage deep tech entrepreneurs has positioned the firm as a favored partner for those looking to innovate in Southern Europe. The firm has previously backed high-potential companies, such as Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel, and Microharvest. With Faber Tech III, the firm is set to extend its legacy by providing robust support to founders in the early stages of their groundbreaking ventures.

Among the initial investments planned through Faber Tech III are companies located in Portugal, Spain, and the Netherlands that are engaged in cutting-edge fields such as photonic chips, analog chip design, and synthetic biology. These areas are critical for future scientific advancements and industrial applications. Specific announcements regarding these investments are expected in the coming weeks.

Voices from Key Stakeholders

Alexandre Barbosa, Managing Partner at Faber, expressed enthusiasm about the launch of Faber Tech III, emphasizing the firm's ongoing commitment to supporting resilient and science-driven entrepreneurs in Europe. Barbosa noted that Faber’s specialized approach, combined with a thesis-driven group of limited partners (LPs), positions the firm as a leading partner for seed deep tech in Southern Europe.

Marjut Falkstedt, Chief Executive of the EIF, echoed this sentiment, stating the importance of supporting entrepreneurs working on next-generation digital tools during this pivotal period of digital transition. Falkstedt expressed confidence in Faber’s ability to identify and support future deep tech champions at the earliest stages, thereby contributing to Europe's competitive edge in the digital landscape.

Chris O’Connor, Managing Partner of the NATO Innovation Fund, also highlighted the significance of maintaining Europe’s technological superiority for regional security and resilience. He expressed pride in supporting Faber’s initiatives, which aim to connect Iberian entrepreneurs with opportunities that can unlock the potential of their technologies.

Pedro Rangel, CEO of Caixa Capital, reinforced the strategic role of Faber Tech III within the venture ecosystem, stating that Caixa Capital's investment highlights its commitment to strengthening the Portuguese venture capital landscape. Rangel noted that Faber has cultivated a robust network of international partners, which positions it effectively to foster growth and value creation in the sector.

Fostering a Culture of Innovation

Faber’s influence within the Southern European venture capital scene is amplified by its extensive entrepreneurial and scientific expertise. The firm is supported by a network of Venture Partners and expert advisors who provide guidance to founders during the crucial early phases of their ventures. Additionally, Faber runs the Faber Entrepreneurship Program, a 12-week initiative aimed at equipping MSc, PhD, and post-doctoral STEM students with essential entrepreneurial skills.

Faber actively collaborates with universities and Technology Transfer Offices (TTOs) to promote knowledge transfer and capacity building, reinforcing its role in cultivating a vibrant innovation ecosystem in Iberia.

The launch of the Faber Tech III fund marks a significant milestone for deep tech investment in Southern Europe. By targeting early-stage, science-driven startups, Faber is not only addressing the funding needs of innovative entrepreneurs but also contributing to the broader landscape of technological advancement. With the support of strategic partners and a commitment to fostering innovation, Faber Tech III stands as a beacon for the potential of deep tech in driving sustainable growth and transformative change across Europe.