Extension Fund

Extension Fund is a distinctive hybrid investment vehicle based in Barcelona, Spain, specializing in early-stage technological companies within the Spanish market. The fund differentiates itself by employing a dual investment strategy, primarily utilizing Venture Debt and Convertible Notes, rather than traditional equity-only approaches. This flexible model is designed to provide capital to nascent tech ventures while potentially minimizing immediate equity dilution for founders. Managed by Extension Advisors, a team boasting over 15 years of experience in the venture capital and startup ecosystem, the fund leverages deep industry insights to identify and nurture promising Spanish startups.

The fund's investment thesis centers on supporting innovative companies that have demonstrated initial traction and are poised for growth, but may not yet be ready for larger, equity-heavy rounds. Their typical first cheque ranges from €100,000 to €500,000, which translates to approximately $108,000 to $540,000 USD, providing crucial early-stage capital. This range allows them to cater to a diverse set of needs, from bridging funding gaps to enabling specific growth initiatives.

Extension Fund recently launched a new fund, targeting a total capital raise of €10 million. This significant capital infusion is intended to expand their capacity to support a larger portfolio of companies, with plans to invest in 30 to 40 startups. This strategic expansion underscores their commitment to fostering the Spanish tech ecosystem and providing tailored financial solutions that align with the unique development stages of early-stage companies. Their hybrid approach offers a valuable alternative for founders seeking non-dilutive or less dilutive funding options in the competitive early-stage landscape.