According to EU-Startups, Lisbon-based Armilar Venture Partners has announced the first closing of its Fund IV with over €120 million secured to invest in DeepTech and digital transformation startups across Portugal, Spain, and Europe. The fund has attracted major institutional investors 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 through Series A investments, focusing on the intersection of digital technologies and applied science. The firm will continue fundraising with the goal of doubling the fund’s size by the end of 2026, working with CaixaBank to attract more Spanish institutional investors. Armilar’s managing partners emphasized that this fundraising comes during a challenging period for VC fundraising across Europe.
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Why Iberia’s moment might be now
Here’s the thing about Armilar’s focus on Spain and Portugal – it’s not just regional patriotism. The firm has been around since 2000 and backed companies like OutSystems and Feedzai from their early days. They’ve seen what works. And what they’re seeing now is what partner Duarte Mineiro calls “world-class talent, rising R&D intensity, and increasing institutional support” coming together in Iberia.
But here’s what’s really interesting: they’re raising this fund precisely when VC fundraising across Europe is hitting a five-year low. Armilar’s founding managing partner Joaquim Sérvulo Rodrigues basically said the timing is perfect because there are tons of exciting opportunities but less investment capacity out there. That’s a pretty bold bet on their ability to pick winners in a market that others might be avoiding.
Not your typical startup investments
When Armilar talks about DeepTech, they’re not just throwing around buzzwords. Their investment thesis sits at the intersection of digital technologies and applied science. We’re talking about B2B startups with serious technological chops that solve actual business problems. The range is broad – from AI and cybersecurity to SpaceTech and dual-use technologies.
So what does this mean for founders? If you’re building something technically complex that addresses critical business challenges, Armilar might be your Series A partner. They’ve already worked with dozens of Spanish founding teams and are currently evaluating startups for their 2025 investment pipeline. The bar is high though – they’re looking for companies that can scale globally, not just dominate local markets.
What this means for European tech
Armilar’s successful fundraising during what they describe as a “liquidity shortage” sends a pretty clear signal. Institutional investors like SETT and the European Investment Fund are still willing to back experienced VC teams with proven track records. SETT’s general director Javier Ponce specifically mentioned they’re investing to “drive economic growth, foster social progress, and accelerate Spain’s digital transition.”
Now, the real test will be whether Armilar can replicate their past successes with OutSystems and Feedzai in this new fund. They’re betting that the combination of European DeepTech talent and reduced competition for deals will create outsized returns. If they’re right, we could see more funds following their lead into specialized, technically complex startups rather than chasing the next consumer app.
The firm’s collaboration with CaixaBank to attract more Spanish LPs also shows how regional financial institutions are getting serious about venture capital. That’s potentially huge for building sustainable funding ecosystems outside traditional hubs like London and Berlin. Basically, Armilar isn’t just raising a fund – they’re trying to build infrastructure for Iberian tech growth.
