Spanish venture capital (VC) firm Kfund has successfully raised $75 million to support technological projects across Europe. Announced on June 17, 2024, the new fund aims to assist founders working with foundational technologies such as data analytics, platform layers, and artificial intelligence (AI).
Kfund’s latest initiative, known as K3, targets a fund size of €70 million. This fund will invest in southern Europe, supporting founders from pre-seed to Series B stages. The firm aims to leverage its experience as founders and executives of technology companies to guide these startups towards sustainable growth. Kfund’s unique regional capability allows it to support ventures from their inception to significant growth phases.
The company’s presentation highlighted a market shift where successful tech companies are increasingly B2B focused. Between 2012 and 2017, only 28% of unicorns (startups valued at over $1 billion) in the UK, Germany, and France were B2B “tech enabled.” This figure rose to 60% in the subsequent five-year period, reflecting a significant trend towards business-focused technological solutions.
Kfund’s announcement comes amid a resurgence in tech investments in Europe. Earlier this month, Creandum, another private tech investor, launched a $544 million fund, marking a turnaround after a period of reduced investment. This optimism in the tech sector suggests a renewed appetite and activity across the industry, as highlighted by Creandum’s general partner, Carl Fritjofsson.
Recent analyses by PYMNTS underscore the growing importance of AI in venture capital decision-making. AI technologies enable firms to analyze vast amounts of data on startups and market trends rapidly. Steve Brotman, founder and managing partner of growth equity firm Alpha Partners, emphasized that AI augments human capabilities, helping venture capitalists sift through data and identify genuine opportunities with unprecedented precision and speed.
Kfund’s sixth fund, K3, is designed to build on the success of its predecessors, K1 and K2. These earlier funds supported a variety of successful entrepreneurs and ventures, including Factorial, Urbanitae, Exoticca, Barkibu, and Abacum. Kfund remains dedicated to high-impact projects in verticals such as AI, data analytics, edge computing, 5G connectivity, blockchain, and cloud services.
Kfund sees immense opportunities within southern Europe’s technological ecosystem. The fund manager’s investments are heavily concentrated in this region, where they believe proximity and a deep understanding of local growth challenges can significantly enhance job creation and wealth generation. Kfund has co-invested with prestigious international funds, including Creandum, Atomico, a16z, Goldman Sachs, Softbank, CRV, and Bitkraft.
General Partner Iñaki Arrola emphasized Kfund’s mission to provide the support that he wished had been available when starting his ventures. The swift market support for K3 reflects the trust that Spain’s top entrepreneurs have in Kfund. This fund aims to continue supporting ambitious entrepreneurs, helping them create impactful companies that define the future of business in southern Europe.