Looking for scale-up capital in Spain?
We all know the problem: Spanish startups are created, founded and then either they move to London or the US for capital or they close operations. The lack of scale-up capital in Spain is well-known. The same applies to other European countries.
The situation has improved over the last few years and seems to have experienced a dramatic boost just recently. In 2024, the Spanish government launched an agency called SETT (Sociedad Española para la Transformación Tecnológica) in order to deploy €16 billion to boost the digital transformation as well as sectors such as telecommunications, microelectronics, semiconductors and digital media. An important part of these funds (€4 billion) will be executed through the Next Tech Fund through loans and direct equity investments for innovative companies.
This is really good (and surprising) news for Spanish startups as the main financing channel for them until now was CDTI Neotec, a funding program that had not more than €20 million in 2024 for ALL Spanish startups.
The SETT agency have been closing its first operations during 2025:
– €4 million invested in Wooptix (semiconductors)
– €9 million invested in Sensia (infrared imaging systems)
– €67 million invested in Multiverse Computing (AI)
These are the eligibility criteria for scale-ups/startups and investors:
SETT CRITERIA – SCALEUP/STARTUP INVESTMENTS
– The business must be based on innovative digital technology of a disruptive or strategic nature.
– SETT may contribute up to 49.9% of the capital increase.
– The company’s ownership must remain private after the capital increase.
– Companies must be based in Spain.
– Co-investment options: pari passu with private investors and at least one private investor external to the company with a significant stake.
– Compliance with the criteria of the European Recovery and Resilience Facility (RRF).
SETT CRITERIA – FUNDS
– SETT may hold a stake in the vehicle of up to 49%.
– Investment in start-ups and scale-ups and digital and technological transformation.
– Vehicle incorporated in an EU or OECD country, preferably authorized or registered with a regulatory body.
– The investment team must have demonstrable experience in the vehicle’s target sectors.
– The vehicle must commit to mobilizing, in the form of investments, at least twice the capital committed by SETT in Spanish companies.
– The asset manager’s capital must be 100% privately held when investing through funds.
– The vehicle’s capital must be predominantly privately held.
– The management team’s historical record in technology investments and past returns will be considered.
– Compliance with the European RFF criteria.
– Investments in financial vehicles will not be eligible for the PERTE Chip.
Image by Mondschwinge from Pixabay
This article was first published by David Arias on Linkedin.
