A recent study by Dealroom highlights the Spanish technology sector’s milestone, revealing that the aggregate value of Spanish startups exceeded €100 billion in 2023. A testament to this growth, Madrid’s Seaya venture capital firm recently finalized the establishment of Seaya Andromeda, a €300 million climate tech fund, under the “Article 9” classification, aimed at promoting positive societal and environmental advancements.
“Article 9” is part of the European Union’s Sustainable Finance Disclosures Regulation Act, obliging investment entities to verify the beneficial impact on society or the environment of their investments.
Established 12 years ago, Seaya focuses on backing purpose-driven start-ups within Europe and Latin America. The newly initiated “Andromeda” fund is set to back companies driving energy transitions, decarbonization efforts, sustainable agriculture, and circular economy initiatives.
According to the firm, the climate initiative fund will allocate initial investments ranging from €7 million to €40 million, preserving funds for subsequent investments, with an ambition to support 25 companies by 2027. Presently, the fund has already made five investments.
Seaya was inaugurated in 2013 by Beatriz González, a former private equity investor with a developed interest in climate and sustainable investments following her support for a recycled clothing venture. Her background includes tenure at Morgan Stanley, Excel Partners, and Darby Overseas Investments in the U.S., and involvement with Telefónica’s pension fund’s alternative assets program.
Under González’s leadership, Seaya has extended financial backing to several climate tech firms, including Biome Makers, Clarity.ai, Crowdfarming, Descartes, RatedPower, Samara, and Wallbox, an electric vehicle charging solution that went public on the New York Stock Exchange in 2021.
In discussion, González shared her insights on the advantages of operating a climate tech fund from Spain, particularly given the region’s exposure to extreme weather conditions like heatwaves, droughts, wildfires, and storms, enhancing social awareness and creating a conducive environment for such investments.
González explained, “Southern Europe, particularly Spain, not only confronts extreme climate phenomena, elevating societal consciousness, but also possesses distinct competitive advantages in targeted sectors such as renewable energy, due to its robust talent pool and extensive industrial base across auto parts manufacturing, agriculture, and real estate.”
Questioned on the firm’s capability for deep tech investments concerning climate technology, González highlighted the in-house engineering expertise complemented by a partnership network including major EU banks like Santander, facilitating comprehensive diligence processes and swift action.
To date, Seaya’s strategic investments encompass projects like Seabery’s AR technology, designed for welder training to significantly cut carbon emissions, and Recycleye’s AI-based waste sorting robots, among others, demonstrating their commitment to environmental sustainability.
In another strategic move, Seaya has also ventured into the San Francisco-based Pachama, a pioneering climate tech firm specializing in data-driven validation of carbon credit projects.
Compiled by Techarena.au.
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