According to a recent report by Dealroom, Spain’s tech startup ecosystem has achieved a combined valuation of €100 billion as of 2023. Madrid-based venture capital fund has announced the closing of Seaya Andromeda, a pioneering “Article 9” €300 million climate-focused technology fund headquartered in Madrid.
The article references Article 9, which assigns responsibility to funding companies to ensure that their investments positively impact society and the environment.
With a presence spanning over 12 years, Seaya has focused mainly on supporting mission-driven startups across Europe and Latin America. The newly launched “Andromeda” fund will invest in development companies specializing in vitality transition, decarbonization, sustainable food value chains, and the circular economy.
The agency has announced its local weather fund, which is expected to deploy a total of €7-40 million, with the majority earmarked for initial investments, while retaining capital for potential follow-on deals. By the end of 2027, it aims to make around 25 new investments. As of this point, five investments have been established within the fund, as outlined below.
In 2013, Seaya relaunched under the direction of Beatriz González, a seasoned private equity investor who had recently been drawn to environmental and sustainability-focused initiatives following her involvement with a pioneering recycled clothing brand. With a background that includes stints at Morgan Stanley, Excel Partners, and Darby International Investments in the United States. Following her successful tenure, she progressed to lead Telefónica’s pension fund as director, overseeing its diverse property portfolio.
Seaya, a venture capital firm led by González, has invested in several local weather technology companies, including Biome Makers, Readability.ai, Crowdfarming, Descartes, RatedPower, and Samara. Additionally, Seaya has also backed Wallbox, an electric vehicle charging stations company that went public on the New York Stock Exchange in 2021.
When speaking with González about potential benefits of having a fund focused on Spanish local weather technology, I asked if she believed that having such an initiative based outside of Spain could be advantageous, considering the country’s proximity to regions severely impacted by climate-related issues like extreme heat, droughts, wildfires, and storms.
“She praised the inquiry, calling it excellent.” Given the context of vitality transition and decarbonization in Southern Europe, particularly in Spain, our company is uniquely positioned to capitalize on two key advantages. The region is experiencing severe heatwaves due to abnormally high temperatures in Southern Europe. Indeed, societal awareness has evolved significantly. We further assume that our targeted sectors are experiencing competitive advantages.
As a pioneer in renewable energy, we’ve developed the expertise to transition seamlessly into large-scale production of auto components with major corporations. With a substantial industrial foundation established, we now boast a considerable manufacturing capacity. Identical publicity exists in both agricultural and real estate industries. With our accumulated business experience and expertise, especially in Southern Europe and Spain, we’ve gained a distinct advantage.
What kind of experience do they have that enables them to make informed decisions on climate-tech investments?
As we’ve developed an in-house engineering team, we’ve gained valuable expertise to drive innovation forward; meanwhile, our LP community has expanded to include prominent European Union banks such as Santander, offering financing solutions for energy and manufacturing projects. Obtaining that information facilitates swift and thorough due diligence, enabling a faster transfer.
Up until now, Seaya has leveraged that insight to invest in a range of affiliated companies. A Spanish company is pioneering the application of augmented reality in talent coaching, creating innovative AR software and hardware solutions that revolutionize training methods. One notable example is their development of an AR-based system for welding coaches, which enables them to simulate welding processes digitally, significantly reducing carbon emissions by 95% per training session.
The company has also invested in an AI-powered waste management startup based in the UK in February 2022, which develops robots that sort trash for recyclables.
In San Francisco, the agency invested in WeatherTech, a local company that leverages data insights to verify the quality of carbon credits and facilitate the rollout of innovative carbon offset projects.
The newly established fund’s performance aligns with key metrics signaling a resurgence in investment activity across Southern Europe. In the final week of their visit to Barcelona, Plus Companions are seeking to secure $30 million to $50 million in funding through targeted efforts to attract investors and supporters.
The 2023 report also revealed that Spain’s ecosystem ranked fourth globally, boasting a notable variety of startup funding last year.
