Lisbon based Índico Capital Partners has announced the launch of its third investment fund, a €125 million vehicle focused on accelerating deeptech innovation across Southern Europe. The fund represents one of the region’s largest early stage investment commitments and strengthens Portugal’s position as a rising hub for advanced technology. The initiative has already secured €30 million in anchor backing from the European Investment Fund.
The new fund aims to support high potential companies working in artificial intelligence, robotics, next generation software and frontier technologies. Índico intends to target startups that can scale globally from Southern Europe while benefiting from the region’s strong engineering talent and growing research ecosystem. The firm believes that deeptech will shape Europe’s competitiveness in the next decade.
EIF’s anchor investment signals strong confidence in both the fund’s strategy and Portugal’s expanding innovation landscape. The institution has been increasing its involvement in Southern European venture capital as part of wider European Union efforts to stimulate technology growth. Its commitment to Índico Fund III provides a solid foundation for attracting additional private investors.
Índico Capital Partners has built a strong track record through its previous funds, which supported several high growth Portuguese and European startups. The firm has been instrumental in shaping Lisbon’s reputation as a vibrant entrepreneurial city with global ambition. Fund III is expected to deepen this impact targeting even earlier stage opportunities in highly technical fields.
The fund’s geographical focus includes Portugal, Spain and Italy, where deeptech investment remains underrepresented compared with northern Europe. Índico aims to bridge this gap providing funding and strategic support to founders tackling complex technological challenges. The firm sees strong potential in university spinouts, research lab ventures and specialised engineering teams.
Investments are expected to range from seed to Series A stages, with follow on capacity reserved for the most promising companies. The fund will also support portfolio teams through mentorship, global network access and strategic guidance during early growth phases. Índico believes these resources are essential for turning technical breakthroughs into commercially viable products.
Portugal’s broader tech ecosystem stands to benefit significantly from the new fund. The country has attracted growing attention from global investors due to its favorable business environment, talent availability and expanding R&D infrastructure. Deeptech is seen as the next frontier for Portuguese innovation following the country’s success in software and fintech.
Industry observers note that the launch of Fund III aligns with Europe’s push to strengthen technological sovereignty and reduce reliance on external markets. backing advanced engineering and scientific ventures, the fund contributes to the continent’s long term competitiveness in areas that require high expertise and capital.
With €125 million available for deployment and strong institutional support, Índico Capital Partners is positioned to play a central role in shaping the future of deeptech across Southern Europe. The launch marks a new chapter for Lisbon’s investment landscape and highlights the growing confidence in Portugal’s ability to nurture world class innovation.
