Adara Ventures, a venture capital firm operating in Spain and Luxembourg, has announced the first close of its fourth flagship fund, AV4, with a target capital commitment of €100 million. The firm, which focuses on early-stage deep tech investments, plans to allocate the fund toward sectors such as cybersecurity, applied AI, digital infrastructure, hardware components, digital health, and space. Adara also continues its expansion into energy transition technologies with a separate fund, Adara Ventures Energy (AVE). The firm’s investment strategy remains centered on long-term value creation rather than short-term valuation gains.
Compared to its previous funds, Adara has significantly increased its capital commitments. The firm has now secured over €140 million across its fourth-generation funds in the past nine months. The company has historically backed companies that provide substantial returns, often producing “dragons”—businesses that return the entire fund. Similar results were seen in its second fund, AV2, which ranks among the top 5% of venture capital funds in Europe for its vintage.
What makes AV4 an attractive opportunity?
Adara Ventures emphasizes its strong DPI record and disciplined investment approach, which has enabled it to raise funds in a challenging economic environment. The firm has over 130 limited partners, including institutional investors, pension funds, asset managers, and high-net-worth individuals. New anchor investors and portfolio company founders have also participated as limited partners in AV4, demonstrating confidence in Adara’s investment strategy.
How will Adara deploy its latest funds?
The firm plans to make three investments from each of its AV4 and AVE funds by mid-2025. Both funds remain open to additional investors. Adara has previously invested in over 50 companies across Europe and the US, with successful exits including AlienVault, acquired by AT&T, PlayGiga, bought by Meta (NASDAQ:META), and Seedtag, acquired by Advent International.
Founding Partner Nico Goulet highlighted the firm’s focus on long-term returns rather than unicorn valuations.
“In a sector obsessed with unicorns, our philosophy has always been to maximize ‘dragons’—companies that return the entire fund. We are proud to have generated at least one dragon in each of our previous fund generations,”
he said.
Since its founding in 2005, Adara Ventures has built a portfolio that includes cybersecurity firm Cyber Guru in Italy, medical imaging company Quibim in Spain, and satellite analytics provider SatVu in the UK. The firm oversees approximately €350 million in assets and remains committed to supporting early-stage deep tech startups in Europe.
Adara Ventures’ continued focus on deep tech and energy transition investments highlights the growing demand for innovative technological solutions. The firm’s disciplined investment strategy and commitment to long-term returns distinguish it from many venture capital firms that prioritize rapid scaling. By securing new anchor investors and maintaining its approach of investing in high-potential startups, Adara positions itself for sustained growth. The ongoing development of deep tech sectors, particularly in cybersecurity and AI, suggests that AV4’s investments could contribute significantly to advancements in these industries.
