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 ventures across Portugal, Spain, and Europe. The fund has attracted institutional investors including Spain’s Sociedad Española para la Transformación Tecnológica (SETT), NextTech, and the European Investment Fund. Armilar plans to build a portfolio of around 20 companies over the fund’s life, focusing specifically on Series A opportunities at 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. Armilar’s managing partner Pedro Ribeiro Santos called this “the natural next step” for expanding their Series A investment platform and backing exceptional founders as they scale globally.
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The Iberian DeepTech moment
Here’s the thing about this announcement – it’s not just another VC fund raising money. This represents a significant vote of confidence in the Iberian tech ecosystem at a time when fundraising across Europe has been challenging. Armilar’s partners are explicitly calling out Spain’s “growing opportunity” thanks to world-class talent and increasing institutional support. They’re basically saying the stars are aligning for Spanish and Portuguese DeepTech startups to go global.
Why this timing matters
Armilar’s founding managing partner Joaquim Sérvulo Rodrigues made a fascinating point about the current market. He noted that VC fundraising in 2025 could hit five-year lows, particularly in Europe, due to the liquidity shortage of recent years. So how did they manage to close €120 million in this environment? It suggests that institutional investors see something special happening in Iberian DeepTech that’s worth betting on despite the broader market headwinds.
What this means for startups
For B2B startups working on everything from AI and cybersecurity to SpaceTech and dual-use technologies, this is significant. Armilar has a track record of backing companies like OutSystems and Feedzai from early days to global leadership. Their focus on “applied science” rather than just software suggests they’re looking for startups with serious technical moats. And with their collaboration with CaixaBank to attract more Spanish LPs, there’s clearly a strategic push to deepen their Spanish footprint.
Broader market implications
This fund represents more than just capital – it’s validation that Iberia can compete in the global DeepTech race. When you combine this with other recent developments in the region, it feels like Southern Europe might finally be getting the recognition it deserves for technical innovation. The question is whether this will trigger a domino effect, with other VCs following Armilar’s lead into Spanish and Portuguese DeepTech opportunities. Given the firm’s ambitious plan to double the fund by 2026, they certainly seem confident about the pipeline.
