FOCO Co-investment Fund Commits €80 Million to Cathay Innovation Fund III
Funding | Jul 28, 2025 | Cia Espanola de Financiacion d
The Co-investment Fund (FOCO), managed by COFIDES, has committed €80 million to the Cathay Innovation III Fund, managed by Cathay Innovation SAS. The fund is a €1 billion venture capital initiative focused on artificial intelligence, marking it as one of Europe's largest, with half of its existing investments in startups within the region. Specific attention is given to four key sectors: consumer, healthcare, financial services, and energy/mobility. A significant portion of the fund's allocation will target Spanish companies with promising growth and digitalization prospects, continuing Cathay's history of investments in Spain since 2016. More than €160 million is earmarked for investment in Spanish companies. With FOCO's support, Cathay Innovation plans further investments and to establish an office in Spain. The fund’s strategic role in transforming Spanish industry aligns with government objectives for digital and international business expansion. Key figures from COFIDES and Cathay Innovation express optimism about opportunities for Spanish tech entrepreneurs to access international platforms through this partnership.
Sectors
- Venture Capital
- Artificial Intelligence
- Digital Transformation
Geography
- Spain – The article focuses on investments and industrial transformation within Spain, as driven by FOCO and Cathay Innovation's commitment to Spanish companies.
- European Union – The fund has a significant presence in Europe, with a considerable portion of its investments targeting EU-based startups, reflecting the regional focus of the Cathay Innovation III Fund.
Industry
- Venture Capital – Cathay Innovation III is a venture capital fund dedicating resources to early and growth-stage companies, facilitating technological and industrial transformation via strategic investments.
- Artificial Intelligence – The article highlights investments in AI-driven companies, reflecting the fund's focus on digital solutions and technological advancement across industries.
- Digital Transformation – The investments aim to facilitate the digitalization of industries, reflecting broader technological shifts within Spanish and European markets.
Financials
- €80 million – Investment by FOCO in the Cathay Innovation III Fund.
- €1 billion – The total size of the Cathay Innovation III Fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cathay Innovation SAS | Fund Manager | Company | A multistage venture capital firm investing in transformative digital businesses across multiple continents. |
| FOCO Co-investment Fund | Investor | Company | A fund established by the Spanish government under COFIDES, aimed at attracting foreign investment and fostering digital and ecological transitions. |
| COFIDES | Fund Manager of FOCO | Company | A state-owned company assisting in the internationalization of the Spanish economy and attracting foreign investments. |