Lisbon-based venture capital firm Armilar announced the first closing of the fourth generation of its flagship funds, securing over €120 million to invest in disruptive technologies across Portugal, Spain and Europe.

Armilar IV attracted institutional investors including the European Investment Fund (EIF) and the Sociedad Española para la Transformación Tecnológica (SETT) — with Spain’s NextTech vehicle for deep-tech innovation.

Joaquim Sérvulo Rodrigues, Armilar’s founding Managing Partner, said: “The shortage of liquidity of the last few years, with few IPOs and a depressed M&A activity, has translated into lower levels of investment in new VC funds — according to recent data, VC fundraising in 2025 could be the lowest we’ve seen for well over five years, particularly in Europe.

“We feel truly privileged to have closed a new fund at this moment, at a time where the abundance of new and exciting opportunities coincides with a reduction in new investment capacity.”

“Armilar IV marks a natural next step for our firm, the opportunity to extend our Series A investment platform and continue backing exceptional founders as they take their technologies from validation to scale,” said Pedro Ribeiro Santos, Managing Partner at Armilar.

“We see outstanding innovation emerging from Iberia and across Europe and we want to help these companies grow globally.”

Duarte Mineiro, Partner at Armilar, said: “Our aim is to build a portfolio of approximately 20 companies during the fund’s life. Iberia is a growing opportunity, as it combines world-class talent, growing R&D intensity and increasing institutional support. We’re incredibly grateful to the group of investors who share this understanding and are trusting us to pursue this opportunity on their behalf.”