The Regional Ministry of Economy, Finance, European Funds and Social Dialogue has awarded two new venture capital funds with a combined public commitment of €49 million to support high-growth business projects. According to Carolina España, Acting Regional Minister for Economy, Finance, European Funds and Social Dialogue, the initiative "will strengthen the Andalusian Government's financing instruments to support the growth of innovative Andalusian companies through Andalucía TRADE."
"Our objective is very simple: to ensure that no viable, innovative business capable of creating wealth and employment in Andalusia is prevented from growing due to a lack of financing," she said.
Speaking at the inauguration of AGPhotonics' new facilities at Málaga TechPark, Carolina España announced that the two expansion funds will soon be complemented by a third investment vehicle dedicated to startups, creating "a new generation of financial instruments designed to facilitate access to capital for innovative, high-growth companies through Andalucía TRADE."
Together, the three funds will receive a total public commitment of €58.8 million—€49 million for the two expansion funds and €9.8 million for the startup-focused vehicle—representing a 62% increase in public funding compared with the previous generation of venture capital funds promoted by the Andalusian Government.
The initiative is expected to support around 60 investment transactions and mobilise approximately €150 million through the leverage effect of private capital. According to Carolina España, the startup fund will provide investments of up to €400,000 per company, while the expansion funds will support growth-stage businesses with investments of up to €2.5 million.
She highlighted that "the Andalusian Government continues to expand its financial support tools to meet the needs of businesses at every stage of their development." She also announced that Andalucía TRADE is finalising the launch of the FAST Fund, a €30 million investment vehicle financed with the agency's own resources and focused on projects related to digital technologies, deep tech, biotechnology and clean technologies.
According to the Acting Minister, the FAST Fund will support strategic initiatives in areas including microelectronics, photonics, advanced computing and defence-related technologies, while improving access to public financing for companies that currently face greater barriers to securing this type of funding.
"Our goal is not simply to finance projects, but to create an environment where they can thrive—where they find support, guidance, confidence and stability to continue growing," she added.
Carolina España also highlighted that Andalucía TRADE has become one of the Andalusian Government's principal business support agencies. Over the past two years, the agency has approved or is currently processing more than 600 business projects, representing over €360 million in investment aimed at strengthening the competitiveness and growth of Andalusian companies.
"Achieving these results in just two years demonstrates the strong demand for these programmes among Andalusian businesses and has enabled us to meet our implementation targets ahead of schedule," she noted.
AGPhotonics: A Showcase for Knowledge Transfer
The announcement was made during the inauguration of AGPhotonics' new facilities. The company specialises in the design of integrated photonics devices and systems and originated from research carried out at the University of Málaga.
"AGPhotonics is an excellent example of how knowledge can be transformed into economic activity and employment," said Carolina España. "It represents the model of collaboration between universities, innovation and industry that the Andalusian Government has been promoting across the region in recent years."
She added that AGPhotonics' growth reflects the strength of Málaga's and Andalusia's technology ecosystem, where universities, research centres, technology companies, entrepreneurs, investors and public institutions work together to drive innovation.
According to Carolina España, this ecosystem is being further strengthened by strategic projects such as the future IMEC microelectronics centre and the Nucleø specialised incubator, initiatives that are helping position Andalusia as one of Southern Europe's leading technology hubs.
She also highlighted Málaga's central role in this transformation, noting the continued expansion of Málaga TechPark, which is now home to more than 700 companies, over 29,000 professionals and generates annual revenues exceeding €4.8 billion.
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