According to EU-Startups, Lisbon-based Armilar Venture Partners has secured over €120 million for the first closing of its Fund IV, targeting Series A investments in DeepTech and digital transformation companies across Spain, Portugal, and Europe. The fund has attracted major institutional backers including Spain’s Sociedad Española para la Transformación Tecnológica (SETT) and the European Investment Fund. Armilar plans to build a portfolio of around 20 companies over the fund’s lifetime, focusing on B2B startups solving critical business problems with high-tech solutions. The firm is working with CaixaBank to double the fund’s size by end of 2026 through additional Spanish institutional investors. Managing Partner Pedro Ribeiro Santos called this “the natural next step” for expanding their Series A platform and backing exceptional founders.
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The Iberian DeepTech bet
Here’s what’s interesting about this move. Armilar isn’t just throwing money at the usual suspects. They’re specifically targeting that sweet spot where digital technologies meet applied science. We’re talking AI, cybersecurity, space tech, health tech – the hard stuff that requires actual technical expertise to evaluate. And they’re doing it with a strong Iberian focus, which frankly makes a ton of sense right now.
Look, everyone knows about Barcelona’s startup scene and Lisbon’s growing tech hub. But what Armilar’s betting on is the combination of “world-class talent, rising R&D intensity, and increasing institutional support” that partner Duarte Mineiro mentioned. They’ve already worked with dozens of Spanish founding teams and are actively evaluating more for their 2025 pipeline. This isn’t some theoretical interest – they’re putting real money behind the Iberian tech ecosystem.
Why now is actually perfect timing
Now here’s where it gets really strategic. Founding Managing Partner Joaquim Sérvulo Rodrigues pointed out something crucial – we’re in a liquidity crunch with few IPOs and muted M&A activity. VC fundraising in 2025 could hit a five-year low in Europe. So why is that good news for Armilar?
Basically, they’ve got dry powder when many competitors don’t. While other funds are struggling to raise capital, Armilar can be selective and move quickly on the best opportunities. As Rodrigues put it, they feel “privileged to have closed a new fund at this moment, precisely when the abundance of new and exciting opportunities coincides with a reduction in new investment capacity.” That’s venture capital chess, not checkers.
Track record matters
Let’s be real – anyone can announce a fund. But Armilar has the receipts. They’ve been around since 2000 and manage over €500 million in assets. More importantly, they’ve backed companies like OutSystems and Feedzai from early days to global leadership. That’s the kind of track record that gets SETT and the European Investment Fund to write checks.
And think about their investment thesis for a second. They’re not chasing consumer apps or the latest crypto trend. They’re looking for B2B startups with “high technological content” solving real business problems. In a market where everyone’s getting more cautious, that focus on fundamentals looks pretty smart.
What happens next
So what does this mean for the Iberian tech scene? We’re likely going to see more Spanish and Portuguese DeepTech companies getting serious Series A funding. Armilar’s collaboration with CaixaBank to attract more Spanish LPs suggests they’re doubling down on the region. And with plans to double the fund size by 2026, this could be just the beginning.
The real question is whether this signals a broader trend of specialized funds targeting specific European regions and tech verticals. If Armilar’s bet pays off, we might see more VCs following their playbook of combining geographic focus with deep technical expertise. For now though, they’ve positioned themselves perfectly to capitalize on some of Europe’s most promising – and technically complex – startup opportunities.
