The City Council of Barcelona has announced the creation of the Barcelona Investment Fund, a new investment fund with a municipal contribution of 30 million euros to support emerging companies in strategic sectors such as the economy for sustainability, the blue economy, creative industries, health, biotechnology, and Deep Tech technologies. This fund is part of the City Council’s strategy to promote a dynamic entrepreneurial ecosystem, generate quality employment, and attract foreign investment. The creation of this fund aims to consolidate Barcelona as a global technology and innovation hub.

This fund is part of the municipal strategy to foster the growth of sectors with high social and environmental impact and to generate qualified jobs. Furthermore, it is expected to help establish the city as a reference for emerging companies working on innovative and disruptive solutions. With the creation of this fund, the City Council is driving the diversification of investment and the attraction of foreign capital, strengthening Barcelona’s competitiveness in technological and emerging sectors.

The Barcelona Investment Fund will be a venture capital vehicle that, in line with other funds created by the City Council such as the Barcelona Accelera Fund and the Deep Tech Fund, will help strengthen the local entrepreneurship ecosystem. Since 2020, the City Council has created these funds with the aim of reactivating private investment and fostering the creation of technological and innovative companies in strategic sectors. The Barcelona Accelera Fund, created after the crisis caused by the COVID-19 pandemic, has been a tool to boost companies affected by the economic paralysis. At the same time, the Deep Tech Fund, created in 2023, focuses on scientific research and technological innovation to address major social and environmental challenges.

So far, these funds have invested more than 9 million euros and helped create nearly 4,000 jobs. The Accelera Fund has allocated 7.9 million euros to 65 companies, and the Deep Tech Fund has invested 1.3 million euros in 42 companies focused on providing technological solutions based on scientific discoveries or disruptive innovations to address the main challenges of today’s society.

These figures demonstrate the positive impact of municipal investments on local entrepreneurship and the city’s economic growth. With the new Barcelona Investment Fund, this impact is expected to expand, offering new opportunities for startups with high growth potential.

“Fund of funds,” a unique formula in the whole of Spain

One of the most innovative aspects of this investment model is the “fund of funds” formula, which allows the City Council to invest in private funds specialized in venture capital. In this way, the City Council does not make direct investments in startups but collaborates with private funds managed by specialized and CNMV-authorized managers that channel resources towards emerging companies. This model generates a multiplier effect on public investment, as the City Council contributes a certain amount of money on the condition that the private fund matches that amount by applying a specific multiplier, which varies with each fund, creating a combination of public and private investment that allows for risk diversification. This strategy, based on the diversification of funds, with a percentage lower than 10% of each fund’s value, minimizes risks and ensures safer and more transparent management.

The Barcelona Investment Fund will also seek to attract other types of investment, such as impact funds, which will prioritize social and environmental outcomes. These funds are particularly important because they support companies with a clear commitment to sustainability and social well-being. In addition, investment will be made in growth funds, which focus on companies in the growth stage, helping them consolidate and expand in the market. These investments will be essential to retain in Barcelona those emerging companies with high growth potential.

The City Council of Barcelona has successfully created a synergy between public resources and private funds to generate a multiplier effect and boost the city’s entrepreneurial ecosystem. This public-private investment strategy is unique in Spain and allows the City Council to share risks with the private sector. Furthermore, this investment policy takes into account other criteria such as geographical, prioritizing companies located in Barcelona; sectorial, investing in companies that are part of the strategic sectors for the city; and gender, which prioritizes investment in companies led by women.