Cuerpo announces $200 million investment fund to boost Spanish biotechnology in the US

The Diplomat The First Vice President of the Government and Minister of Economy, Trade and Business, Carlos Cuerpo, announced on Tuesday the creation of a $200 million venture capital fund to boost the development of Spanish biotechnology companies in the Boston area of the United States. The announcement was made during the Spain-United States Business Meeting, held in Boston with the participation of 40 Spanish and nearly 200 American companies, organized by ICEX (Spanish Institute for Foreign Trade). The event was attended by the Governor of Massachusetts, Maura Healey, and the Mayor of Boston, Michelle Wu. According to a press release from the Ministry, this venture capital fund will have an initial target size of $200 million and will be led by the Richi Foundation and Dreavent, entities created and managed by two Spanish entrepreneurs. The Spanish government will be the “anchor institutional partner” of this instrument, which will include other partners and a planned investment commitment of $57 million to boost the international development of Spanish biotechnology companies. “The new fund is tangible proof of the commitment of Spain and the United States to strengthen our relationship. We are taking another step to reinforce the transatlantic bond and continue promoting the prosperity of both countries,” stated Cuerpo. “We have a unique opportunity to combine Spanish scientific leadership and research excellence with one of the world’s leading hubs of biomedical innovation capital and infrastructure,” he added. World-Class biotechnology companies The Boston-Cambridge area attracted more than $7.6 billion in venture capital for its biotechnology sector in 2023, more than all of Europe combined. It is also the region with the most international patents in biotechnology and medical technology worldwide. According to the government, Spain ranks first in the European Union in clinical trial activity, with more than 1,000 active biotechnology companies. Despite being at the forefront of research, 88% of companies' pipelines remain in the preclinical phase, meaning they never reach patients. The instrument aims to bridge this gap in the Spanish innovation ecosystem by integrating Spanish companies into Boston's advanced clinical infrastructure and innovative capital. The fund has a dual strategy, investing in both US biotech companies in advanced clinical stages and Spanish companies in early stages. "The initiative will help Spanish biotech companies grow in Boston and become world-leading companies, while maintaining intellectual property in Spain at all times," the Ministry stated. With just seven million inhabitants and a GDP larger than Argentina's, the state of Massachusetts accounts for almost a third of all US venture capital investment in biotechnology and is home to more than 120 universities and more Nobel Prizes per capita than almost any other region in the world. Furthermore, Carlos Cuerpo himself announced this Tuesday, through a video published on social media, that “Spain is strengthening its economic presence in the US by creating two new Trade Offices, in Boston and Houston”. “We are expanding our network from six to eight offices, which will soon be operational to help materialize business opportunities between our business communities,” he added.

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