Spain Backs Impact Startups with €6M
Spain's government-backed SETT program has awarded €6 million to the LUMO Fund, which targets startups in sustainability, health, and social innovation. The investment signals a growing trend of public and private capital aligning to support mission-driven tech companies across Europe.
The LUMO Fund is a €100 million multi-stage venture capital vehicle that invests from pre-seed through Series A. Over the next four years, it plans to support 30 to 35 startups aligned with UN Sustainable Development Goals, including health, education, sustainable cities, and climate action. This €6 million injection comes via Spain's Next Tech fund, an initiative derived from the EU's broader Next Generation EU recovery program. The investment is managed by the Sociedad Española para la Transformación Tecnológica (SETT), a public entity established in 2024 to oversee Spain's strategic technology investments. As part of the deal, the Netherlands-based venture capital firm LUMO Labs has committed to matching the public funds, channeling a total of €12 million into Spanish startups. This co-investment model is central to SETT's strategy of using public capital to attract and unlock private funding for early-stage tech companies. The Next Tech fund, with a total of €4 billion, aims to mobilize up to €8 billion through public-private partnerships. It focuses on scaling up companies in deep tech sectors considered strategic for Spain's digital transformation, including artificial intelligence, cybersecurity, and microelectronics. Beyond the LUMO Fund, SETT has recently channeled capital into other deep tech ventures, including a €67 million investment in the quantum software company Multiverse Computing and €9 million into the infrared imaging firm Sensia. This initiative is part of a wider European trend where public investment in private venture funds is used to fill funding gaps and accelerate innovation. The European private impact investing market is currently estimated at €190 billion, with Spain making significant contributions alongside established hubs like the UK, Netherlands, and France.
