16th Fond-ICO Global call: ICO begins mobilising Recovery Plan loans with EUR 900 million in venture capital investments
14 December 2023
- ICO begins mobilising Recovery Plan loans with EUR 900 million in venture capital investments for sustainable and digital projects, the largest ever call from Fond-ICO Global
- The funds will come from three of the facilities managed by the ICO in the Addendum to the Recovery Plan - ICO Verde, ICO Empresas y Emprendedores, and Spain Audiovisual Hub - and will promote investments that foster business growth and green and digital transformation
- Up to 12 operators/funds will be selected to invest in a public-private partnership scheme in business projects at different stages of development: incubation and technology transfer, venture capital and expansion
- The Recovery Plan loans have allowed Fond-ICO Global to increase both the amounts to be disbursed by Fond-ICO Global to each of the selected funds/operators and the maximum investment percentage, reflecting the public sector's commitment to supporting and developing the entrepreneurial ecosystem
- In the 15 previous calls launched by Fond-ICO Global, 130 funds have been selected to invest up to EUR 3.426 billion, which, in collaboration with private investors, is expected to mobilise EUR 11.492 billion for the benefit of Spanish companies
The Instituto de Crédito Oficial, through its venture capital subsidiary AXIS, has launched the largest call of Fond-ICO Global to select the private equity managers for an investment of up to EUR 900 million from loans linked to the Addendum to the Recovery Plan. These investments will focus on innovative projects that foster the growth and transformation of the business landscape.
Depending on the nature of the project, funds will be drawn one of the following facilities managed by ICO in the Addendum to the Recovery Plan: ICO Verde, ICO Empresas y Emprendedores, and Spain Audiovisual Hub.
Investments made through the Green ICO facility are specifically targeted at projects that contribute to renewable energy generation, energy efficiency, sustainable mobility and the circular economy. Empresas y Emprendedores supports projects that foster business growth, while the Spain Audiovisual Hub initiative focuses on advancing the digitisation and production of the Spanish audiovisual and video games sector.
Public-private partnership with Fond-ICO Global
Up to 12 private equity funds/operators will be selected for investment in three categories - incubation and technology transfer, venture capital and expansion category - supporting both early stage start-ups and mature companies
The Recovery Plan loans allow Fond-ICO Global to increase the financial support it provides to each of the selected investment vehicles. This strengthens the public fund's role as a stable investor and the commitment to contributing to the development of the venture capital industry.
Specifically, Fond-ICO Global can invest up to EUR 150 million in the Expansion category, exceeding the limit set in the previous call by an additional EUR 50 million. The investment threshold will be raised from EUR 30 million to EUR 50 million in the Venture Capital category, and from EUR 20 million to EUR 25 million in the Technology Transfer and Incubation category.
The maximum percentage that Fond-ICO Global can contribute to the total funds in which it participates has been increased to 49% across all categories. This measure helps funds to accelerate the growth of investment funds, allowing them to reach their target size quickly and start investing in projects. At the same time, it ensures that private investors retain a majority stake of at least 51% of the total fund.
The publication date of the conditions for the 16th call will be 14 December 2023 and the deadline for submission of documentation will be 23 and 24 January 2024.
Fond-ICO Global and its main figures
Fond-ICO Global promotes the development and consolidation of the private venture capital fund ecosystem in Spain, from the early stages to growth and debt.
In the fifteen Fond-ICO Global calls held to date, 130 private funds have been selected to invest a maximum of EUR 3.426 billion. It is estimated that the multiplier effect of Fond-ICO Global, together with private sector investment, will allow EUR 11.492 billion to be injected into Spanish companies, mobilising a total of EUR 30.288 billion.
The positive evolution of Fond-ICO Global shows the consolidation of this successful public-private collaboration model to boost the venture capital sector in Spain and will be a key element in the implementation of the second phase of the Recovery Plan.
ICO Group in the Recovery, Transformation and Resilience Plan
In the second phase of the Recovery, Transformation and Resilience Plan, the ICO Group will mobilise a total of EUR 40 billion of EU Next Generation loans in 5 tranches: Verde with EUR 22 billion; Empresas y Emprendedores with EUR 8.15 billion ; Next Tech with EUR 4 billion; Spain Audiovisual Hub with EUR 1.712 billion and Vivienda social with EUR 4 billion.
The ICO Group will formalise these Next Generation loans over the period 2024-2026 through 4 financial instruments: the ICO-MRR Second-Floor Facilities in collaboration with credit institutions; direct financing by ICO; the acquisition of bonds and debt securities, and through equity investments in companies and projects through AXIS.
It is estimated that at least 75% of the total loans will be mobilised through financial intermediaries, 2/3 through credit institutions and 1/3 through venture capital funds, depending on business demand.
Axis is active in public-private partnerships with the venture capital industry in all areas of activity. It currently has commitments to manage up to EUR 12.15 billion across its four funds: Fond-ICO Global, Fond-ICO Next Tech, Fond-ICO Pyme, and Fond-ICO Sostenibilidad e Infraestructuras. These commitments will enable a joint mobilisation of public and private resources of more than EUR 24 billion over the next five years, depending on the private sector's capacity to absorb resources and materialise projects.