New funds raised by Spanish private VC&PEs entities according to geographic breakdown of investor (LP) in 2023 Domestic LPs International LPs Source: SPAINCAP/webcapitalriesgo 900 800 700 600 500 400 300 200 100 0 Financial Institutions Pension funds Insurance companies Fund of funds Corporate investors Family office Other asset managers Other Sovereign wealth funds 42 6 61 111 66 100 40 292 174 5 772 130 396 164 175 25 138 6 € Millions Intended application of new funds raised by Spanish private VC&PEs entities in 2022 2021 2022 Source: SPAINCAP/webcapitalriesgo 0% 10% 20% 30% 40% 50% Other Leveraged Buyouts Growth Capital Venture Capital Spanish SMEs grew and consolidated its position as the main recipient of capital raised by Spanish private entities18. Specifically, in 2023, buyouts accounted for 34.7% of intended application of new funds raised, compared to 17.5% in 2022. Growth companies support accounted for the second highest application of new funds raised (33.5% of total). Investments aimed at financing start-ups and scale ups (seed, start up and late stage ventures) represented 30.8% of intended application of new funds raised thanks to the growth in domestic Venture Capital funds closing, many of which are on their second and third generation. Likewise, the closing of several larger than usual domestic Venture Capital funds also played a role, some supported by the Next Tech fund of funds launched by ICO/Axis and the Secretariat of State for Digitization in 2021, giving domestic GPs the ability to fund the growth of Spanish start-ups in more mature stages (late stage venture). For the fourth consecutive year, domestic investors (LPs) were the main source of new resources for the Spanish Private Equity & Venture Capital sector. In terms of the contribution of new funds to private domestic Venture Capital and Private Equity vehicles in 2023, by geographic origin Spanish investors stood out once again, contributing 69% (€1,863M) of total funds raised (€2,702M). In absolute terms, the volume invested by domestic LPs decreased by 11.5% compared to 2022. On the other hand, despite international investor appetite for large international funds, they increased their participation in Spanish vehicles by 63%. A majority of the funds from international investors came from Europe (mainly from Luxembourg, the United Kingdom, the Netherlands and Switzerland), totaling 25% of the total funds raised in Spain, followed by the United States with 4.4%. Broken down by asset type, Spanish investors were the main source of new funds raised by Venture Capital vehicles, contributing €754.7M of the €841.5M recorded. In terms of Private Equity vehicles, domestic investors also stood out, with a weighting of 59% on total funds raised by these strategies (€1,108M). Luxembourg followed with 15% of contributions. Notes