Luxembourg-based European Investment Fund (EIF) has announced a commitment of €350 million to Kembara Fund I FCR, a €1 billion target-size pan-European fund. It indicates the strong focus on deep tech and climate, managed by Spain-based Alma Mundi Ventures SGEIC (Mundi Ventures).
Previously, EIF has invested in UK-based provider of Internet of Things (IoT) startup Sensorfact, Swedish carbon accounting platform Normative, and Riga-based robot-enabled wind turbine startup Aerones.
The new fund’s strategy
The new fund will represent a differentiated offering within ETCI, its first investment in a fund in Spain. Kembara will back startups with strong intellectual property, combining scientific and engineering breakthroughs, including complex hardware and capital-intensive businesses, and focused on technologies like AI, the future of computing, robotics, space tech, advanced materials, and next-generation energy systems. Those technology areas are critical for the EU’s strategic autonomy and economic growth.
Kembara will make equity investments in European deep tech and climate companies at the growth stage (Series B and C), especially in Germany, Spain, France, Sweden, and other EU states. It is the latest EIF investment in a technology scaleup fund under the European Tech Champions Initiative (ETCI).
ETCI impact in Europe
ETCI contributes to meeting the financing needs faced by European technology scaleups, preventing them from relocating overseas and reinforcing Europe’s strategic autonomy and competitiveness.
Sectors benefiting from the initiative include cybersecurity, AI, quantum, life sciences, deep tech, cleantech, and digital technologies among others. It is also a strong contributor to the integration of the financial markets in Europe and represents an example of how the EIB Group can pioneer the Capital Markets Union.
Launched in 2023, ETCI is creating a positive dynamic in the European investor market and the tech ecosystem. The Initiative has already invested in eight different scaleup technology funds, including Kembara Fund I, Atomico Growth VI, a growth fund focusing on partnering with game-changing European technology scale-up founders, FSI II, a fund that supports the growth and expansion of Italian mid-cap companies and Keensight Nova VI, a fund that focuses on cybersecurity, automation and robotics, enterprise software, medtech, and healthcare services.
Investment strategy
To date, ETCI has mobilised €10 billion public/private resources to support investment in fast-growing high-tech companies. In Spain, ETCI backed funds have already invested circa €240 million in two growth phase Spanish companies Factorial and Inke. Combined they represent nearly 20% of the ETCI investments in scaleup companies to date.
Through strategic investments and partnerships, ETCI will continue empowering the next generation of European tech champions, shaping the digital future of Europe.
“The ETCI initiative was conceived to provide significant backing to large European funds, enabling them to support future European champions with the scale-up financing they need,” commented Marjut Falkstedt, EIF Chief Executive. “We are delighted to support Kembara, and through it, aspiring tech entrepreneurs all over Europe. The ETCI is now really taking shape, making sure that bright ideas can not only start up, but also grow and flourish right here in Europe.”
Javier Santiso, CEO & founder of Mundi Ventures and co-founding partner of Kembara, emphasised the fund’s mission: “We are honoured to be chosen by the EIF as one of the platforms to scale Europe’s Deep Tech and climate champions. Incremental changes won’t cut it. We are here to back the most ambitious Deep Tech entrepreneurs who want to solve humanity’s most pressing challenges, in particular climate change.”
