European Investment Bank Pledges €350 Million to Largest Spanish VC Fund

  • The fund is seeking €1 billion to invest in tech startups
  • European startup fundraising hasn’t recovered to 2022 levels

The headquarters of the European Investment Bank in Luxembourg.

Photographer: Simon Wohlfahrt/Bloomberg

The European Investment Bank’s venture capital arm has committed €350 million ($379 million) into what’s set to become Spain’s biggest venture capital fund — part of a European drive to help local companies overcome an investment slump and to stop them from relocating overseas.

The fund, Kembara, aims to invest €1 billion in climate and deep-tech startups in Europe, targeting “scale-ups” that have already attracted initial funding rounds and are looking for money to expand, the EIB said in a statement on Monday. The European Investment Fund will act as an anchor investor, which the fund managers are betting will help bring additional outside capital.