The Regional Ministry of Economy, Finance, European Funds and Social Dialogue, through Andalucía TRADE, has published in the OJEU (Official Journal of the European Union) the tenders for the management of the new venture capital funds of the Andalusian public agency. These funds will have a public allocation of €58.8 million, co-financed with ERDF funds, representing a 62% increase compared to the previous venture capital funds.
Under the name “Promotion of the Competitiveness of SMEs in Andalusia,” this new instrument is structured into two lines: the Start Up line, endowed with €9.8 million, which will be managed through a single operational fund; and the Expansion line, endowed with €49 million, distributed across two operational funds. Unlike other autonomous regions, Andalusia guarantees the real additionality of public resources in relation to private investment, ensuring that the financed operations would not have been carried out without the fund.
The strategic objective of this new instrument is to correct the existing market failure in the financing of innovative companies in early stages or initial expansion phases, facilitating venture capital to scale businesses, access new markets, and consolidate the Andalusian business fabric.
Management will be indirect, through financial intermediaries authorized by the National Securities Market Commission (CNMV), selected through a tender process in accordance with the Public Sector Contracts Law and ERDF regulations. The management companies will have full autonomy in investment and divestment decisions, while Andalucía TRADE will supervise the eligibility and purpose of the operations. Fees and conditions will be aligned with market prices.
Entities wishing to manage these funds—whose bids may be submitted until 13 February for the Expansion line and until 16 February for the Start Up line—must be fully incorporated, have an operational office in Andalusia (once the fund is constituted), and a minimum team of three specialized professionals. These entities may be public or private, national or foreign, provided they are legally authorized.
Their responsibilities range from attracting private investors, setting up the funds as new and independent vehicles, identifying investment opportunities, and investing in projects that generate added value for Andalusia.
The target audience of these new instruments is Andalusian SMEs. Specifically, for the Start Up Fund, companies must be less than 7 years old with turnover below €2 million; and for the Expansion Fund, companies with market traction and revenue, oriented toward growth through investment, employment, or market expansion.
The characteristics of the transactions envisaged under these funds—through equity stakes or participating loans—may reach up to €400,000 per company for the Start Up Fund and up to €2.5 million per company for the Expansion Fund. Projects may be financed that include investments in tangible and intangible assets, working capital and operating expenses, as well as non-organic growth projects (with limits).
Andalucía TRADE estimates that approximately 60 investments may be made with a multiplier effect of 2.5, meaning that the nearly €60 million in public funds will mobilize €150 million in total investment, attracting €90 million in private capital. The funds will be operational in 2026. The investment period runs until 31/12/2029, and the recovery period until 31/12/2036
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