A recent Dealroom report on the Spanish tech ecosystem revealed that the combined enterprise value of Spanish startups surpassed €100 billion in 2023.
This upward trend is further confirmed by Madrid-based VC fund Seaya’s recent closure of Seaya Andromeda, an “Article 9” €300 million climate tech fund.
Article 9 and Sustainable Investing
Article 9 refers to the EU’s Sustainable Finance Disclosures Regulation Act, which mandates investment firms to ensure their investments positively impact society or the environment.
Seaya, established 12 years ago, primarily focuses on mission-driven startups in Europe and Latin America. The new “Andromeda” fund will invest in growth companies specializing in energy transition, decarbonization, sustainable food value chains, and the circular economy.
Investment Strategy and Early Investments
The firm stated that the new climate fund will deploy between €7 million and €40 million as an initial investment, retaining capital for follow-on investments. They plan to make 25 investments by the end of 2027, with five investments already made.
Seaya’s Founder and Climate Focus
Seaya was founded in 2013 by former private equity investor Beatriz González, who transitioned into climate and sustainable investing after backing a recycled clothing line.
She previously worked for Morgan Stanley, Excel Partners, and Darby Overseas Investments in the U.S. Later, she became a director of Telefónica’s pension fund, leading its alternative assets program.
Seaya’s Climate Tech Investments
Under González’s leadership, Seaya has invested in various climate tech companies, including Biome Makers, Clarity.ai, Crowdfarming, Descartes, RatedPower, Samara, and electric car charging stations company Wallbox (which went public on the New York Stock Exchange in 2021).
In an interview, González was asked about the potential advantage of having a climate tech fund based in Spain, given the country’s vulnerability to climate change effects like extreme heat, drought, wildfires, and storms.
González’s Response
“It’s a good question,” she replied. “We believe Southern Europe, particularly Spain, is better suited for two reasons. Firstly, Southern Europe experiences more extreme heatwaves, leading to increased social awareness.
Secondly, we have competitive advantages in our target industries. We’ve been pioneers in renewable energy, possessing the talent and major companies in auto parts manufacturing, providing a strong industrial base. This expertise and talent from Southern Europe, especially Spain, gives us a slight advantage.”
Expertise in Deep Tech Investments
Regarding their expertise in making deep tech investment decisions in climate tech, González explained, “We have a couple of engineers with in-house expertise, but our LP network includes major European Union banks like Santander, experienced in project finance for energy or factories.
Access to this knowledge enables us to conduct due diligence and move much faster.”
Notable Investments
Seaya has already leveraged this knowledge to invest in several relevant companies. For example, they backed Spain-based Seabery, an augmented reality skill training solution that developed software and hardware for training welders, reducing carbon emissions by 95% per session.
Other investments include U.K.-based AI-powered waste management startup Recycleye and San Francisco-based Pachama, a climate tech company focused on verifying carbon credits.
Southern European Funding Renaissance
The news of Seaya’s new fund aligns with other positive developments in Southern European funding. Plus Partners recently launched in Barcelona, aiming for a €30 million to €50 million fund.
The 2023 “State of European Tech” report ranked Spain’s ecosystem fourth overall and highlighted it as having the highest number of startup fundings in the previous year.