ICO launches the eleventh call of the Fond-ICO Global fund through AXIS
The investment committed to as part of this new call amounts to 209 million euros, spread over ten funds, the greatest number since this instrument's inception.
The assessment report on Fond-ICO Global shows that this fund has mobilised around 15% of the total funds raised in Spain from 2013-2017 and its impact was equivalent to 0.5% of GDP in 2017.
José Carlos García de Quevedo, ICO's Chairman, today announced the launch of Fond-ICO Global's eleventh call, the first public venture capital Fund of Funds created in Spain by AXIS, ICO's wholly-owned venture capital management company.
ICO, through AXIS, launched Fond-ICO Global five years ago to promote the creation of privately managed venture capital funds which invest in Spanish companies at all stages of their growth.
The investment committed to as part of this eleventh round is up to 209 million euros through the selection of ten funds, the greatest number since this fund's inception.
This new call launches a category of venture capital which is more focused on companies' digitisation and innovation. Despite more than 58% of the current Fond-ICO Global venture capital portfolio financing digitisation projects, AXIS wishes to further strengthen the necessary digital transformation of SMEs and entrepreneurs, which will be crucial to maintaining their competitiveness, as well as their globalisation and internationalisation processes.
Through Fond-ICO Global, up to 30 October 2018, investments of 1.543 billion euros, spread over ten calls, have been approved in a total of 71 private funds. Of the 71 funds, 26 are venture capital funds, 25 capital expansion, 17 incubation or technological transfer and three are debt. The ultimate investment aim of these 71 funds could reach 20.839 billion euros.
In addition, given the multiplier effect generated by this instrument, the investment commitment of Fond-ICO Global in the ten calls to date (1.543 billion euros) represents an injection of 6.032 billion euros into Spanish companies, which has provided employment to more than 121,000 people.
Investments made through Fond-ICO Global have repercussions on the transformation of companies, improving their productivity, internationalisation and, therefore, resulting in greater economic growth and job creation.
ICO's chairman announced the launch of this eleventh call at the presentation of the Assessment and Impact Report on Fond-ICO Global held today in Madrid.
Assessment and Impact Report on Fond-ICO Global (2013-2017)
Among the main conclusions drawn is the key role of Fond-ICO Global in reactivating the venture capital sector in Spain. In terms of mobilising funds, Fond-ICO Global represents around 15% of the total funds raised in Spain between May 2013 and 31 December 2017. Additionally, 14.1% of the investments made in Spain in that period correspond to funds invested in by Fond-ICO Global.
One of this report's main aims is to estimate the impact of the public fund in Spain at macroeconomic level, both in terms of GDP and employment, as well as exports and investments.
The impact in GDP terms was 5.403 billion euros, which equates to 0.5% of GDP in 2017 and, with respect to employment maintained and/or created, Fond-ICO Global generated an impact of more than 105,000 jobs, representing 0.6% of total FTE employment.
These results have justified the fund's increase on two occasions to the current 2 billion euros and have allowed it to be cemented as an initiative which is here to stay and is a necessary instrument in the Spanish private capital sector.
Sustainability and Social Impact Funds
In presenting this report, ICO's chairman also announced that AXIS is to launch a new initiative worth 50 million euros to invest in Sustainability and Social Impact Funds under the auspices of Fond-ICO Pyme, another fund managed by AXIS (a fund for direct investments and other strategies).
The investment is aimed at private capital entities that invest in companies implementing projects in a range of sectors with a significant sustainability and/or social impact, an area in which the public sector has a clear leadership responsibility.