Target Information

On July 28, 2025, the Coinvestment Fund (FOCO), managed by COFIDES, announced an investment of 80 million euros in the Cathay Innovation III fund, managed by Cathay Innovation SAS. Cathay Innovation III is a venture capital fund with a total capitalization of 1 billion euros, making it the largest of its kind outside the European Union. This fund focuses on artificial intelligence and has already completed 16 global investments, half of which are in European startups.

The fund targets four key industrial sectors: consumer goods, health, financial services, and energy/mobility. Its goal is to support digital companies with strong growth potential, significant value creation capacity, and international scalability, thereby contributing to the transformation of the Spanish industry. A considerable portion of the European allocation will be directed towards Spanish companies exhibiting robust digital and growth prospects.

Industry Overview in Spain

The Spanish artificial intelligence industry is experiencing rapid growth, reflected in the increasing amount of investment in AI startups. The government and private stakeholders are keen on fostering an environment conducive to technological innovation. This is vital for Spain's economic recovery post-COVID-19 and aligns with broader European objectives of digitalization and technological advancement.

Policies aimed at promoting innovation in AI are being implemented, including funding programs, subsidies, and initiatives to attract foreign investments. The Spanish market offers a fertile landscape for AI startups, supported by a talented workforce and robust educational institutions.

Furthermore, European Union initiatives are designed to bolster the competitiveness of digital industries across member states, ensuring that countries like Spain remain integral players in the AI landscape. This collaborative approach aims to harmonize regulatory frameworks and standards across Europe, making it easier for companies to operate across borders.

With a surge in demand for AI solutions across various sectors, from healthcare to finance, Spain stands at the forefront of this revolution. The investment landscape is rich with opportunities, and many startups are poised to play a pivotal role in shaping the future of technology.

Rationale Behind the Deal

FOCO's investment strategy aligns with its mandate to foster digitalization and innovation within the Spanish economy. By partnering with Cathay Innovation III, FOCO aims to leverage Cathay's expertise in identifying promising startups that can contribute to the digital transformation of industry in Spain. This strategic investment is intended to create a ripple effect, stimulating additional investments and partnerships.

The collaboration also signifies a commitment to enhance the growth prospects of Spanish startups, particularly in the rapidly evolving fields of AI and technology. The infusion of capital and expertise from Cathay Innovation is expected to yield substantial returns while simultaneously promoting Spain's position in the global market.

Information About the Investor

Cathay Innovation is a renowned venture capital firm affiliated with Cathay Capital. It focuses on various stages of business development and invests in transformative ventures across Europe, North America, Asia, Latin America, and Africa. The firm acts as a bridge connecting entrepreneurs with investors and leading corporations from the Fortune 500 list to create scalable business solutions.

Founded in Paris in 2015, Cathay Innovation currently manages over 2.5 billion euros in assets. The firm’s global presence includes offices in major cities such as San Francisco, Berlin, Madrid, Shanghai, and Singapore. Cathay has invested in more than 120 startups, positioning itself as a significant player in the venture capital landscape with a keen interest in AI and high-growth industries.

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This investment from FOCO into the Cathay Innovation III fund represents a strategic move towards enhancing Spain's technological landscape. The collaboration is expected to unlock significant potential in the Spanish market, particularly as the demand for AI solutions continues to escalate across various sectors. With a robust financial backing and expert guidance from Cathay, Spanish startups are likely to experience increased support for scaling their operations internationally.

Furthermore, Cathay’s extensive network and experience in the global venture capital arena position it well to identify promising startups capable of achieving substantial growth. This partnership not only strengthens FOCO's objectives but also aligns with the broader European goals of fostering innovation and digital transformation.

Overall, the investment appears to be a sound decision that balances risk with the potential for high returns. As Spain continues to emerge as a key player in the artificial intelligence sector, this alliance is likely to yield positive outcomes, promoting innovation while supporting economic recovery efforts in the wake of the pandemic.

In summary, the combination of FOCO's financial resources and Cathay Innovation's expertise presents a formidable opportunity. It is anticipated that this investment will catalyze further developments in the Spanish technology ecosystem, making it a potentially lucrative venture for all stakeholders involved.

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