- First Drop receives 8,3 million euros from SETT, known as SEPI Digital
- The fund has over 19 million under management and expects to reach 25 million.
- The investment will support between 40 and 45 high-impact technology startups.
- Public capital is channeled through Next Tech, with a horizon until 2029.
The Spanish fund First Drop, specializing in very early-stage investment in social and environmental impact projects, has taken a leap in size and ambition after receiving an injection of 8,3 millones de euros of the Spanish Society for Technological Transformation (SETT), better known in the market as the SEPI DigitalThis operation reinforces the role of public capital as a lever to accelerate purposeful technological innovation in Spain.
With this institutional contribution, the investment vehicle surpasses the barrier of 19 million euros under management and aims to position itself around the 25 million euros in the coming monthsThe new financial muscle will translate into direct support for several dozen early-stage technology startups, with a focus on those that, in addition to growing, generate a positive and measurable impact on society and the environment.
An 8,3 million investment to accelerate up to 45 startups
The transaction signed by the SET It materializes through Next Tech, one of the instruments of Recovery, Transformation and Resilience Plan backed by funds Next Generation of the European UnionAccording to the fund itself, public participation is 100% committed and represents less than 50% of the total capital of the vehicle, which allows maintaining a majority weight of private capital and maximizing the pull effect on other investors.
The capital from SEPI Digital will be allocated entirely to direct investment in startups, without diverting to other uses, with the goal of supporting among 40 and 45 emerging companiesThe deployment schedule extends until June 2029This provides ample time to calmly analyze opportunities and support projects in their early growth phases.
First Drop maintains a average ticket price around 300.000 euros per transaction, with the capacity to participate in subsequent rounds when startups begin to gain traction and require larger amounts. In its first full year of operation, the fund had already mobilized 7,4 millones de euros, closed 12 new operations and reached a total of 23 committed investments, thus consolidating a remarkable investment pace for a fund focused on the pre-seed phase.
The management company insists that SETT's involvement is not limited to the volume of resources, but that it acts as a institutional seal of trust towards the fund's model. This validation, they point out, facilitates both the acquisition of new limited partners private initiatives such as opening doors to international collaborations are key for Spanish startups to compete on equal terms in future funding rounds.
Pre-seed approach with social and environmental impact
First Drop positions itself in a particularly delicate market segment: the pre-seed phaseThis occurs when projects typically have a minimum viable product or are even in earlier stages, and the perceived risk is high. In this segment, access to capital is usually more limited, so the presence of a specialized fund can make all the difference for many founding teams.
The fund, driven by Manuel Grandson y Alejandro Valero, combines the search for financial profit with the requirement of a tangible social and environmental impactIt's not just about superficially incorporating a responsibility component, but about selecting business models where generating positive impact is at the heart of the value proposition and can be measured with concrete indicators.
In terms of sectors, First Drop's strategy focuses on technology verticals with the potential for structural transformation. The main focus is on the advanced technology, the Artificial Intelligence and the machine learning algorithm , the ciberseguridad and additive manufacturingin addition to solutions digital technologies applied to health, education, sustainability and the circular economyThe idea is to support projects that, starting in Spain, can scale up to other European and global markets without losing sight of the impact.
The fund itself details that the goal is to reach around 45 startups With this new investment capacity, whether through initial funding rounds or by supporting companies in which it already holds a stake. In some cases, the The average ticket price can be slightly above 300.000 euros, in the region of 340.000 euros, when the initial round and possible expansions are combined.
The management company emphasizes that its role is not limited to providing capital: the intention is to offer strategic support, helping startups prepare for subsequent funding rounds and connecting them with a network of industrial and financial partners to facilitate their expansion, especially in an increasingly competitive European context.
The role of SEPI Digital and the public investment strategy
La Spanish Society for Technological TransformationThe agency, attached to the Ministry for Digital Transformation and Public Administration, has established itself as one of the cornerstones of the rollout of digitalization policy in Spain. Under the brand SEPI DigitalThe entity combines direct investment in startups with participation in specialized funds like First Drop, a course of action that is already approaching the 100 billion euros committed in different vehicles.
Within this strategy, SEPI Digital has channeled resources towards funds such as Culture CAP7, aimed at financing audiovisual productions; Zubi Capital, focused on emerging companies facing social and environmental challenges; Next Tier GVC Gaesco, focused on startups linked to the Artificial Intelligenceor the Portuguese fund Armilar Venture Partners IVspecializing in AI, digitization, and connectivity projects. Entry into First Drop It fits into that line of acting as a catalyst in high-tech and high-impact areas.
In the specific case of the impact fund led by Nieto and Valero, SETT participates with a share less than 49% of the vehicle, in line with the limits the entity sets in its bylaws when investing in funds. This percentage allows public capital to function as multiplier effectattracting private resources, both national and international, without taking control of decision-making.
As First Drop itself explains, the combination of public capital and professional management seeks to strengthen the competitiveness of the Spanish technology ecosystemOne of the goals is to prevent the country's startups from reaching advanced funding rounds at a disadvantage compared to competitors from other markets who have had early access to greater resources and broader investment networks.
Both parties emphasize that the investment will contribute to the generation of qualified employment, to the development of high value added companies and to the strengthening of national technological fabricCombining a clear local impact with the ambition to build projects of international scale. Furthermore, it aligns with the objectives of Next Tech to increase productivity, strengthen economic competitiveness and promote Spain as one of the technological investment hubs in Europe.
Current portfolio: from sustainable mobility to the circular economy
In a short time, First Drop has been shaping a diversified portfolio of startups which aptly illustrates their investment thesis. Among the companies in which they hold stakes are names such as Motoreto, linked to the field of mobility; Fresh Greensfocused on technological solutions for urban agriculture; or Agrow Analytics, which develops data analysis tools for precision agriculture.
The fund has also invested in projects that delve into the circular economy and sustainability. This is the case of Recovo, marketplace aimed at giving a second life to fabrics and materials in the textile industry, or banbu, which promotes personal hygiene products developed with criteria for waste reduction and low environmental impact.
In the field of digital health and well-beingFirst Drop participates in companies such as Ealyx y Oviantawho work on technological solutions to improve healthcare and women's health. In parallel, in the field of education and employmentThe fund supports projects such as Emendufocused on technological tools for learning, or Hirint, a platform aimed at optimizing talent selection and management processes.
The portfolio is rounded out with initiatives such as Minitales, focused on children's digital content with an educational and responsible vocation, and other companies that operate at the intersection between deep tech, AI and solutions applied to sustainability, health, education and employmentOverall, this creates an investment map where technology is put to use in addressing specific social and environmental problems.
According to data provided by the management company, in that first full year of activity, the operations carried out have resulted in a average ticket price close to 340.000 euros when expansions and support in immediately subsequent phases are included, reflecting the fund's commitment to monitoring the most promising companies in its portfolio.
Impact on the Spanish entrepreneurial ecosystem
The arrival of a capital boost like that provided by SEPI Digital to a fund specializing in pre-seed funding has broader implications than just the strictly financial ones. On the one hand, it expands the number of funding sources available for early-stage projects, a stage where traditionally many entrepreneurs have encountered difficulties in closing significant rounds.
On the other hand, it sends a signal to the market about the Public sector commitment to innovation with impactThis could encourage both new teams to launch their own ventures and private investors to explore these types of strategies. The underlying message is that projects combining advanced technology with a social or environmental purpose are not only desirable, but also enjoy increasingly robust support structures.
For founders in the early stages, the presence of a player like First Drop means having an investor willing to take risks at the very moment when convincing the market is most difficult. The fact that the fund has ability to accompany in successive rounds And a growing network of international contacts can make the difference in going from a small pre-seed round to Series A or B deals with global funds.
First Drop itself points out that the professional management of public capital It is one of the elements that can facilitate these connections, preventing Spanish startups from reaching stages of international expansion with a disadvantaged position compared to ecosystems where access to resources is, from the outset, more abundant.
In this context, voices from the fund emphasize that 2025 has become the year of consolidationIn this context, the firm is no longer perceived as "the new impact fund" but rather as a true benchmark in the pre-seed segment. The entry of SEPI Digital is interpreted internally as an endorsement of this evolution and as an additional lever to accelerate companies with solutions exportable from Spain to other markets.
All this movement places First Drop in a relevant position within the Spanish venture capital ecosystem: with more than 19 million euros managed, a key public contribution of 8,3 million channeled through Next Techa clear objective of funding up to 45 impactful technology startups With an existing portfolio that combines advanced technology and purpose, the fund is establishing itself as one of the key players to watch at the intersection of innovation, sustainability, and business development in Spain.