NATO Innovation Fund invests in Faber, marking first investment in a Southern European fund

November 4, 2024

Faber’s new fund of up to €60 million to seed the future with deep tech in Southern Europe
New fund to accelerate Faber’s deep tech investments in Iberia and help close the gap in specialized seed capital

The NATO Innovation Fund announced today an investment in Faber’s new fund, Faber Tech III, alongside the European Investment Fund (EIF) – which anchored the fund – and Caixa Capital. The fund’s initial closing of €31 million also includes repeat participation by prominent family offices from Portugal. Subsequently to this first closing, Faber aims to reach a target fund size of €60 million in the coming months.

Faber’s unique specialist approach to seed deep tech in Southern Europe has enabled the firm to collaborate with several science- and mission-driven entrepreneurs, such as the founders of high-potential companies like Sword Health, Smartex, Mitiga, Luminate Medical, Unbabel or Microharvest, among others.

Faber Tech III will use this experience to target innovative pre-seed and seed-stage startups in applied science and digital transformation, including in vertical AI & AI governance, robotics, computational bio & chemistry, data infrastructure and novel computation.

The fund is committed to driving breakthrough innovation across industries and in Iberia and the broader Southern Europe region, while also selectively investing in the rest of Europe. Faber’s initial investments through the new fund include companies in Portugal, Spain and the Netherlands in areas such as photonic chips, analog chip design and synthetic biology.

“The launch of Faber Tech III represents an ongoing commitment to seeding the future by supporting the next generation of science-driven and resilient founders in Europe. Faber’s unique specialist and entrepreneurial approach together with our thesis-driven group of LPs positions us as the “partner of choice for seed deep tech” in Southern Europe.”

Alexandre Barbosa

Managing Partner, Faber

“Maintaining Europe’s technological edge is critical to ensuring the region’s security and resilience. We are proud to be supporting Faber, which has a legacy of connecting entrepreneurs in Iberia with the opportunities they need to unlock the scaling potential of their technologies. We look forward to collaborating with Faber to further accelerate investments in breakthrough technologies across Southern Europe.”

Chris O’Connor

Partner, NATO Innovation Fund

The firm’s long-term commitment to building capacity within the ecosystem is demonstrated through the Faber Entrepreneurship Program, a recurring 12-week initiative designed specifically for STEM MSc, PhD, and post-doc students. The firm also actively engages in community collaborations with Technology Transfer Offices (TTOs) and universities, fostering a vibrant innovation ecosystem across Iberia.

Over the recent years, Faber has been an early investor in a differentiated portfolio of hard tech companies (close to 50% are developing novel combinations of hardware and software), with companies originating from several European countries and where Faber has taken on a lead investor role in 70% of initial ticket rounds.

The launch of the new Faber Tech III fund eyes powerful combinations of science, purpose and capital to help unlock Southern Europe’s scientific potential and contribute to seeding the future in Europe.

“As our economies and societies navigate the digital transition, it’s important that bright entrepreneurs working on the next generation of digital tools have the backing they need. This is why we are very glad to be partnering with Faber again, confident in their ability to seek out and support tomorrow’s deep tech champions at the earliest stages, driving the digital transformation and European competitiveness alike.”

Marjut Falkstedt

Chief Executive, EIF