"la Caixa", through its venture capital arm Caixa Capital Risc, has launched a new investment vehicle, Caixa Innvierte BioMed II, in collaboration with the Ministry of Economy and Competitiveness, through the Centre for Technological and Industrial Development (CDTI), under the framework of the INNVIERTE initiative.
The objective of Caixa Innvierte BioMed II is to meet the need for investment in growth stages (series A and B) of Spanish businesses in the life sciences sector and to accompany them until their next stage in maturity. The vehicle will invest a minimum of 500,000 Euros and a maximum of 4.5 million Euros in the capital of each company. It is estimated that the average investment per operation will be 2.5 million Euros.
Caixa Innvierte BioMed II will have an investment volume of 35 million Euros, an amount provided chiefly by Criteria CaixaCorp and the CDTI. The vehicle will also have minority participation from VidaCaixa, the Institut Català de Finances (Catalan Institute of Finances, ICF) and Laboratorios LETI.
By creating this new vehicle, the venture capital arm of "la Caixa", specialised in the first-round financing for innovative companies, will be managing a total of five investment companies with a total investment volume of 103 million Euros.
These funds are specialised in sectors recognised for their high growth potential. Specifically, Caixa Capital Risc invests in life sciences companies through the vehicles Caixa Capital BioMed, and now Caixa Innvierte BioMed II; in digital technologies (corporate software, communication equipment, e-business, and mobility), with Caixa Capital TIC; and in industrial technologies (new materials, sustainability, process engineering, etc.), with the Caixa Innvierte Industria fund.
The management company has a fifth vehicle, Caixa Capital Micro, which is a micro venture capital instrument for projects in all sectors that are in their initial development phase.
Commitment to develop the biotech sector in Spain
Caixa Capital Risc created Caixa Capital BioMed, its first fund specialised in the biotech sector, at the end of 2011. Since then, the vehicle has invested a total of 14 million Euros in 13 companies, which has earned over 18 million Euros in private domestic and international investment for its entrepreneurial projects.
The companies participated by this first life sciences fund operate in the biomedical sector, basically in the diagnosis of and therapy for infectious, neurodegenerative, and cardiovascular diseases, as well as in medical technology.
As of today, Caixa Capital BioMed has finished its investment period and will focus on creating value for its portfolio companies. New investments in the sector will be channelled through the new fund Caixa Innvierte BioMed II.
The biotech sector in Spain
According to the latest report from the Spanish Association of Biotech Companies (ASEBIO), Spain is the ninth-largest in the world and the fifth-largest in Europe in terms of scientific research, a sector that in 2013 amounted to 7.15% of Spanish GDP. In 2011, there were 3025 companies performing biotech activities in the country. There is a strong spin-off culture in the sector: each year between 10 to 12 companies are created from public institutions.
Throughout 2013, around 32 million Euros were invested in Spain into a total of 12 companies from the sector through venture capital funds and from private investors.
The commitment from the "la Caixa" Group to the development of the biotech sector in Spain is a two-pronged approach: for one part, scientific research is driven through Obra Social "la Caixa"; for the other part, the group supports the creation and financing of companies through its venture capital arm, Caixa Capital Risc, whether through the BioEmprendedorXXI programme or through direct capital investment.
About Caixa Capital Risc
Caixa Capital Risc is the venture capital arm of "la Caixa", which invests in the early stages of innovative Spanish companies with high growth potential, accompanying them throughout the different stages of their development.
With a turnover of 103 million Euros, they invest in the capital of innovative companies via 5 investment vehicles: Caixa Capital BioMed, Caixa Innvierte BioMed II, Caixa Innvierte Industria, Caixa Capital TIC and Caixa Capital Micro.
About the CDTI
The Centre for Technological and Industrial Development (CDTI) is an entrepreneurial Public Entity, part of the Ministry of Economy and Competitiveness, that promotes the innovation and technological development of Spanish companies. In recognition of its extensive experience, the Law on Science, Technology, and Innovation assigns this Centre as the agent for financing R&D in the entrepreneurial field.
In the field of financing for innovative and tech-based businesses, this body has several programmes that drive their growth and development. One of those is INNVIERTE, the aim of which is to promote entrepreneurial innovation through supporting venture capital investment in tech-based businesses. The body strives to drive the entry of private capital into Spanish tech-based SMEs that are ready for market not only to finance the technological activities of said SMEs, but also to provide them with the capacity for the management, globalisation, and knowledge of the market.
With a focus on sector specialisation, the INNVIERTE programme has invested in 4 venture capital entities and maintains 4 co-investment agreements with private investors. The programme has mobilised over 230 million Euros in public/private initiatives in the sectors of Information Technology and Communications, Energy and the Environment, Industrial Technologies, and Biomedical Technologies, which has made it possible to invest over 30 million Euros in 33 tech-based SMEs.
In 2014, INNVIERTE expects to deploy its strategy in the field of Biomedical Technologies and, as such, hopes to mobilise over 150 million Euros in various public/private investment initiatives.
