ICO expands Fond-ICO Global by 2,500 million euros to promote additional financing channels for companies and entrepreneurs

ICO expands Fond-ICO Global by 2,500 million euros to promote additional financing channels for companies and entrepreneurs

  • This expansion will continue to promote venture capital as a complementary financing channel.
     
  • Fond-ICO Global's expansion is included in the measures to finance start-ups and to support the entrepreneurial ecosystem that is being developed by the Ministry of Economic Affairs and Digital Transformation.
  • ICO recently launched the fund's 13th call. This is the largest call since its inception both in terms of amount (430 million euros) and in the number of invested funds (up to 16).
     
  • The 13th call will result in the distribution of the 2,000 million euros with which the fund was endowed. The fund is estimated to have enabled the injection of over 7,600 million euros in financing to Spanish companies.


 Instituto de Crédito Oficial's (ICO) board has approved an additional 2,500 million euros of expansion for the next 5 years of Fond-ICO Global, the first public venture capital fund of funds created in Spain and managed by AXIS, the management company wholly owned by ICO.

This expansion will contribute to promoting venture capital as a complementary financing channel for Spanish companies and entrepreneurs. Diversifying financing channels contributes to companies having more solid growth and being more competitive, which undoubtedly constitutes a basic pillar for economic recovery.

Fond-ICO Global's expansion is included in the various measures to finance start-ups and support the entrepreneurial ecosystem that is being developed by the Ministry of Economic Affairs and Digital Transformation.

Fond-ICO Global contributes to distributing both national and international private funds to invest in Spanish companies, particularly focusing on those that are in the early stages of development.

Thanks to its versatility, Fond-ICO Global has established itself as an instrument that adjusts to the needs of the entrepreneurial ecosystem at all times. For this reason, the Fund selection system through calls will continue through the expansion of Fond-ICO Global, since its effectiveness and flexibility have been shown to respond to the needs and objectives of the market at all times, adapting each call both in terms of the maximum investment volume and the number of funds and categories.


13th call

Through AXIS, ICO recently launched the 13th call for the selection of Fond-ICO Global fund managers. This call will contribute to injecting funds and boosting Spanish companies' growth and competitiveness, especially for those projects and companies that are in their early stages of development, entrepreneurs, start-ups, etc. With this aim in mind, both the number of funds (up to 10 of a total of 16) and their amount (up to 220 million euros) exceed the amounts destined for other categories for the first time.

In this new call, the digitisation and sustainability of companies and projects are maintained as qualitative criteria to be assessed for the selection of funds, and, given the situation created by COVID-19, the implementation of action plans by managers to provide additional and temporary liquidity to companies in their portfolio has been included for the first time

When Fond-ICO Global's 13th call is awarded, the 2,000 million euros with which it was endowed will have been distributed. Given the good performance of the fund and its positive effect on the venture capital sector in Spain, ICO's Board has decided to increase it by an additional 2,500 million.


FOND-ICO Global Balance

In the twelve Fond-ICO Global calls made to date, 93 private funds have been selected to invest a maximum of 1,937 million euros.  It is estimated that the benefits generated by Fond-ICO Global, along with private sector investments, will allow 7,668 million euros to be injected into Spanish companies and a total of 23,845 million euros in resources to be mobilised.

To date, 68 funds have been suscribed, for an amount of 1,293 million euros, with a commitment to invest over 5,900 million euros in Spanish companies. The positive evolution of Fond-ICO Global shows the consolidation of this successful public-private collaborative model aimed at boosting the venture capital sector in Spain.

In addition, through AXIS, ICO provides companies with financial resources complementary to bank financing to minimise the economic impact of this health crisis and complements other initiatives under development through FondICO Pyme to provide liquidity to startups and technology SMEs.

FondICO Pyme has an endowment of 250 million euros and offers long-term support to companies in their expansion and growth plans, through direct investment, in co-investment with other professional investors or indirectly through funds.