Spanish startups have been gaining significant traction in the tech ecosystem, with a recent report from Dealroom revealing that their combined enterprise value surpassed €100 billion in 2023. This upward trend has been further confirmed by Madrid-based VC fund Seaya, which has closed Seaya Andromeda, a €300 million climate-tech fund.
Seaya, which has been operating for 12 years, has primarily focused on mission-driven startups in Europe and LatAm. The new Andromeda fund will specifically invest in growth companies specializing in energy transition, decarbonization, sustainable food value chains, and the circular economy. By investing between €7M-€40M as a first check and retaining capital for follow-ons, Seaya plans to make 25 investments by the end of 2027. Currently, the fund has already made five investments.
The founder of Seaya, Beatriz González, who previously worked for notable financial institutions such as Morgan Stanley and Excel Partners, explained that her interest in climate and sustainable investing began after supporting a recycled clothing line. She believes that being based in Spain provides certain advantages for investing in climate tech. Southern Europe, including Spain, experiences extreme heat waves and is therefore more socially aware of the effects of climate change. Additionally, Spain has a strong industrial base in renewable energy, auto parts manufacturing, agriculture, and real estate exposure. This expertise and talent give Seaya a competitive edge.
When asked about their expertise in making deep-tech investment decisions in climate tech, González mentioned having engineers on their team. Furthermore, their LP network includes major European Union banks like Santander, which provide knowledge and expertise in project finance for energy and factories. This access allows Seaya to conduct due diligence and make faster investment decisions.
Seaya has already made significant investments in various climate tech companies. For instance, they invested in Seabery, a Spain-based augmented-reality skill training solution that reduces carbon emissions by 95% per welding session. They also invested in Recycleye, a UK-based AI-powered waste management startup that uses robots to sort rubbish for recycling. In San Francisco, the firm invested in Pachama, a climate-tech company that uses data to verify the quality of carbon credits and enable the launch of new carbon credit projects.
This news of Seaya’s new climate-tech fund comes amidst a funding renaissance in Southern Europe, with Plus Partners also launching in Barcelona with the aim of raising a $30M-$50M fund. The State of European Tech report for 2023 further highlights Spain’s thriving ecosystem, ranking it in fourth place overall and noting that it had the highest number of startup fundings last year.
Overall, Seaya’s new fund demonstrates the growing interest and investment in climate tech in Spain. With their industry expertise, talent, and access to relevant knowledge, they are well-positioned to drive positive change in the energy transition and decarbonization sectors, ultimately contributing to a more sustainable future.