The innovation landscape in Southern Europe, particularly in Spain and Portugal, has been gaining remarkable momentum. Yet startups often struggle to find the scale-up capital required to take their groundbreaking ideas global.
Armilar Venture Partners recognises this challenge and has stepped in with its newly launched fund, Armilar IV, which closed its first round at over €120 million in November 2025.
With backing from the European Investment Fund (EIF) and Spain’s SETT, under the NextTech initiative, Armilar IV aims to fuel companies that blend digital technology with hard science, investing in promising deep-tech sectors such as AI, cybersecurity, healthtech, fintech, and spacetech.
The VC plans to continue raising capital for Fund IV, aiming to double its size by the end of 2026.
Three investments by 2025
Founded in 2000 by Joaquim Sérvulo Rodrigues, Armilar Venture Partners has become a cornerstone of Portugal’s venture capital ecosystem. The firm’s leadership, including managing partners Pedro Ribeiro Santos and Duarte Mineiro, brings decades of combined experience in nurturing early-stage ventures.
Their fund wants to back visionary founders who addressing global challenges with real-world impact. The LPs believe that Iberia offers a unique convergence of world-class talent, increasing R&D activity, and growing institutional support, making it fertile ground for the next wave of tech innovation.
Pedro Ribeiro Santos told TFN exclusively, “We’re seeing a real wave of technological innovation coming out of Iberia right now. Founders in Portugal and Spain are building at the intersection of science and technology, turning great research into scalable products. With Armilar IV, our goal is to help these teams go global by taking what starts in Iberia and making it matter on a global stage.”
Armilar’s edge lies in its rigorous focus on disruptive B2B startups that prove their technology with tangible, scalable solutions. Unlike many competitors that spread their bets, Armilar maintains a highly selective investment thesis, pushing only technologies with strong technical moats and broad market potential. Its track record speaks volumes: companies like OutSystems and Feedzai emerged under Armilar’s wing and have gone on to become global tech companies.
The firm’s deep operational support, active board involvement, and ongoing funding rounds set it apart as a hands-on investor that stays in the trenches with founders, all while leveraging the latest tools to identify promising startups early.
Armilar is already seeing a high volume of deal flow, connecting with many promising startups as part of its investment plans for 2025.
Duarte Mineiro, Partner at Armilar, explained: “Our aim is to build a portfolio of approximately 20 companies during the fund’s life. Iberia is a growing opportunity, as it combines world-class talent, growing R&D intensity and increasing institutional support. We’re incredibly grateful to the group of investors who share this understanding and are trusting us to pursue this opportunity on their behalf.”
What’s next?
With its capital raised, Armilar IV intends to make its first three investments by the end of 2025, aiming to ultimately construct a portfolio of around 20 companies during the fund’s life. The plan is to continue fueling the ambitious startups of Iberia, empowering them to disrupt markets globally.
The firm remains optimistic even amid a challenging European venture capital climate, viewing the current funding scarcity as an opportunity. Furthermore, the goal to double the fund size to nearly €240 million by late 2026 underscores Armilar’s long-term confidence in Southern Europe’s tech potential.
