4Founders Capital closes third VC fund at €70M, above target

Key Takeaways

Sector: Business Services, Technology Software & Gaming.
Geography: Spain.

Analysis

4Founders Capital, a Spanish venture capital firm focused on early-stage technology startups, has announced the final close of its third fund, 4Founders Capital III, at €70 million. The fund exceeds its original target of €65 million and was finalized just six months after its first close.

The fund attracted commitments from prominent investors, including the European Investment Fund (EIF), CDTI-Innvierte, insurers, family offices, and a large number of repeat backers. Notably, 88% of previous investors renewed their support, validating the performance of the firm’s earlier funds.

Launched in 2017, 4Founders Capital specializes in backing “Spanish-linked startups” in pre-seed and seed stages that aim for global scalability. The firm emphasizes capital-efficient growth, strong EBITDA generation, and technology-driven models—especially B2B SaaS platforms leveraging artificial intelligence.

The new fund maintains the firm’s generalist investment thesis with a strong focus on verticals such as fintech, business services, traveltech, cybersecurity, and developer tools. Initial ticket sizes range from €300,000 to €2 million, with the potential to reach up to €6 million per company.

So far, five investments have been made through Fund III in startups including Mogu, Puntopost, Showme, Altan, and Steryon. The firm expects to invest in around 40 companies over the next four years.

Marc Badosa, Co-founder of 4Founders Capital, commented: “We are very pleased with the oversubscribed closing of our third fund. The continued support from past investors and the addition of strategic new partners strengthens our ability to fuel innovation and back visionary entrepreneurs.”

4Founders Capital now manages a total of €134 million in assets, positioning it among the most active early-stage investors in the Spanish venture ecosystem. Its first fund has delivered 1.65x return on invested capital with a net IRR above 18%.

Notable exits from the first fund include Holded, Securitize, Flanks, and The Hotels Network. The second fund, launched in 2021 with €50 million, has already built a portfolio of 38 startups, featuring names like Embat, Zenrows, Vidext, TaxDown, Viterbit, DealCar, and Invofox.

In the broader European context, the closing of 4Founders Capital III comes amid a cautious but recovering VC landscape, with similar funds such as France’s Kima Ventures and Germany’s Headline also reinforcing their focus on AI-native and capital-efficient startups in 2025.