Faber’s Second Fund Hits €20.5M to Fuel Iberian AI and Data Science Startups
Portuguese venture capital firm Faber has achieved the first close of its Faber Tech II fund at €20.5 million ($24.3 million), with ambitions to reach a final close of €30 million in the coming months. The fund targets pre-Series A and early-stage startups specializing in artificial intelligence (AI), machine learning (ML), and data science, with a focus on Southern Europe and the Iberian Peninsula.
Key Backers and Investment Strategy
The fund is supported by the European Investment Fund (EIF) and Portugal’s Financial Development Institution (IFD), which jointly committed €15 million under the Investment Plan for Europe (Juncker Plan) and Portugal Tech program. Additional funding comes from private institutional and individual investors.
Alexandre Barbosa, Faber’s Managing Partner, emphasized the growing demand for AI-driven solutions:
“Digital transformation through AI, ML, and data science is becoming increasingly critical for businesses. Southern Europe is emerging as a hub for innovation, and we’re positioned to support this growth.”
Early Investments Showcase Faber’s Vision
Faber has already made three strategic investments:
- SWORD Health: Co-financed a €15.6M Series A for this Portuguese startup, which pioneers AI-powered digital physiotherapy.
- YData: Led the pre-seed round for this platform helping data scientists access high-quality, privacy-compliant datasets.
- Emotai: Co-financed the pre-seed round for a neuroscience-driven analytics platform for virtual sports.
A Track Record of Success
Faber has a history of backing Portugal’s most promising startups, including:
- Seedrs (recently merged with Crowdcube)
- Unbabel
- Codacy
- Hole19
Deep-Tech Expertise and Academic Collaboration
Faber’s investment strategy leverages a network of 20+ experts, including data scientists, CTOs, and AI professors. The firm has also introduced a Professor-in-Residence role, currently held by Mário Figueiredo, a leading researcher in AI and machine learning from Instituto Superior Técnico.
Why Iberia? A Growing Tech Ecosystem
Barbosa highlighted the region’s rising appeal:
“Entrepreneurs are flocking to Lisbon, Porto, Barcelona, and Madrid to launch startups or expand engineering teams. The data stack—AI, ML, and data science—is driving this transformation, making Iberia a key player in Europe’s tech landscape.”
With a bullish outlook for 2024, Faber aims to accelerate the region’s entrepreneurial engine, positioning Southern Europe as a hotspot for data-driven innovation.
