Armilar has reached the first close of its fourth flagship venture fund, securing more than €120 million to back disruptive technologies across Portugal, Spain, and the wider European market. The Lisbon-based firm describes the vehicle as an expansion of its Series A platform, aimed at helping founders move from validation to scale. The closing underscores Armilar’s confidence in Iberia’s momentum and Europe’s capacity to produce globally competitive technology companies.
Strategy and Focus
Armilar IV centers its thesis on the intersection of digital technologies and hard science, targeting B2B startups with deep technical defensibility. The fund’s mandate spans artificial intelligence, cybersecurity, software development, infrastructure and computing, digitalization and automation, fintech, healthtech, spacetech, and dual-use technologies. While investing across Europe, the firm says a significant allocation will be directed to Iberia, aligning capital with the region’s rising R&D intensity and maturing founder base.
Investor Base and Market Context
The first close features commitments from institutional backers including the European Investment Fund and Spain’s Sociedad Española para la Transformación Tecnológica, alongside Spain’s NextTech vehicle for deep-tech innovation. Armilar positions the fund as a response to both the scarcity of new VC capital and the abundance of high-quality opportunities emerging from research-driven teams. “We see outstanding innovation emerging from Iberia and across Europe and we want to help these companies grow globally,” said Managing Partner Pedro Ribeiro Santos.
Dealflow and Pipeline
The firm reports a very active dealflow environment in Southern Europe, citing extensive engagement with founding teams and several candidates under analysis for its 2025 pipeline. With a target portfolio of about 20 companies over the fund’s life, Armilar plans to concentrate on Series A rounds where its operational and technical expertise can be most catalytic. The team indicates it aims to complete three new investments by year end, reflecting conviction in pipeline depth and execution readiness.
Track Record and Portfolio Legacy
Founded in 2000, Armilar has backed companies that scaled into international leaders, including OutSystems and Feedzai, and currently manages more than €600 million in assets. The firm attributes fundraising traction to consistent performance across prior flagship vehicles and sustained founder support through multiple market cycles. “We feel truly privileged to have closed a new fund at this moment, at a time where the abundance of new and exciting opportunities coincides with a reduction in new investment capacity,” said founding Managing Partner Joaquim Sérvulo Rodrigues.
Market Backdrop and Resilience
Armilar acknowledges the recent liquidity drought in global technology markets, pointing to fewer IPOs and subdued M&A as headwinds for VC fundraising. Even so, the firm argues that Europe’s high-technology ecosystem, particularly in Spain and Portugal, continues to strengthen through talent density, research output, and institutional support. This backdrop, the firm contends, creates a favorable entry point for disciplined Series A investors who can underwrite technical risk and help teams commercialize at scale.
Outlook and Next Steps
Armilar will continue fundraising for Armilar IV, with an objective of doubling the vehicle by the end of 2026 to amplify capacity across its focus areas. The team emphasizes hands-on engagement post-investment, aligning capital with operational support to accelerate go-to-market, hiring, and international expansion. As the pipeline matures, the firm expects to announce additional investments that showcase the fund’s thesis at the convergence of software, science, and industrial applications.
Armilar IV’s first close signals sustained investor appetite for European deep-tech and data-driven software, even as broader fundraising conditions remain tight. By concentrating on Series A, B2B, and science-rooted propositions, the firm intends to bridge validation and scale for some of Iberia’s most ambitious founders. With cornerstone institutional support and a target portfolio of roughly 20 companies, Armilar is positioning its latest vehicle to capture the region’s next wave of technology leaders.