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"We Aren't Financing Small Things:" Finance Execs From IPR.VC & Zurich Avenue Talk Growth Areas & The Projects They Want To Invest In -- San Sebastian

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  Published in Business and Finance on Wednesday, September 24th 2025 at 7:38 GMT by Deadline.com
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IPR VC and Zurich Avenue Join Forces to Back San Sebastián Investment in a €120 Million Expansion

September 12, 2025 – Los Angeles, CA – In a deal that signals a tightening of European private‑equity ties, the U.S.–based venture capital arm IPR VC and the Swiss‑listed risk‑management group Zurich Avenue announced today that they will jointly commit roughly €120 million to San Sebastián Investment, a boutique European fund that has built a reputation for backing high‑growth technology and fintech ventures across the continent. The investment, made in a combination of cash and convertible notes, is slated to fuel San Sebastián’s next‑phase portfolio expansion and to solidify its positioning as a go‑to partner for early‑stage companies looking to scale in the EU and beyond.

A Look at the Players

IPR VC – Founded in 2015 by former Silicon Valley entrepreneurs, IPR VC has a focused mandate on deep‑tech and AI start‑ups. With over €200 million in assets under management (AUM) as of 2024, the firm has backed 27 portfolio companies, including AI‑driven medical diagnostics platform NeuroLumen and cloud‑security provider CipherSafe. The firm’s most recent $30 million Series B for NeuroLumen was a record for the London‑based company and underscored IPR VC’s appetite for bold, science‑driven ventures.

Zurich Avenue – A relatively new entrant to the venture‑capital space, Zurich Avenue is the investment arm of Zurich Insurance Group’s risk‑management division. Its focus lies in “resilient” technologies that can mitigate climate, cyber, and health‑related risks. The group has already deployed €45 million into health‑tech companies such as EpiGuard (a wearable that detects early signs of infection) and SustainEdge (an AI platform that helps insurers assess flood risk). Zurich Avenue’s capital, while modest by Wall Street standards, is strategically coupled with a deep network of underwriting expertise and data‑driven insights.

San Sebastián Investment – Founded in 2019 by former Goldman Sachs executives, San Sebastián Investment operates from its headquarters in San Sebastián, Spain. The firm has a proven track record of investing in early‑stage European start‑ups that are on the cusp of scaling, particularly in fintech, AI, and sustainable tech. Its portfolio includes the fintech platform PayNexa, the sustainable‑mobility start‑up EcoRide, and the health‑tech company MediTrack. In 2023 alone, San Sebastián generated a 34 % internal rate of return (IRR) across its portfolio, largely driven by the exit of PayNexa to a German payment giant.

The Investment in Detail

• Commitment size: €120 million (approximately $130 million), split evenly between IPR VC and Zurich Avenue.
• Structure: €70 million in convertible notes that will convert into equity at the next fundraising round (target valuation of €1.5 billion). The remaining €50 million will be a direct equity injection at a post‑money valuation of €1.2 billion.
• Use of funds: Expansion of San Sebastián’s venture arm to target higher‑stage (Series C and beyond) deals, increased co‑investment capacity, and the creation of a dedicated “Resilience Fund” aimed at climate‑tech and cyber‑security start‑ups.
• Governance: Both IPR VC and Zurich Avenue will receive board seats in San Sebastián’s flagship investment vehicle, as well as rights to lead future fundraising rounds.

The deal also signals a broader trend of cross‑border collaboration between U.S. venture funds and European investment vehicles. As the European tech ecosystem faces increasing regulatory scrutiny and a tightening capital‑raising environment, partnerships like this offer both geographic diversification and access to a growing pipeline of mid‑stage companies that can deliver returns faster than pure early‑stage bets.

Why San Sebastián?

According to IPR VC’s Managing Partner Luca Bianchi, “San Sebastián’s ability to spot technology leaders before they hit the mainstream and its focus on sustainable and resilient solutions dovetails perfectly with our own strategy. By partnering with them, we’re not just injecting capital—we’re adding a strategic partner that can help our portfolio companies navigate the European regulatory landscape.”

Zurich Avenue’s Chief Investment Officer, Sofia Müller, echoed this sentiment, adding that “our underwriting expertise and data analytics capabilities create a unique value proposition for the companies we support. Together with San Sebastián’s local knowledge and deal‑making acumen, we can deliver a differentiated growth pathway for our portfolio.”

San Sebastián’s own CEO, Carlos Gómez, emphasized that the infusion of capital will accelerate its “second‑generation” strategy: “We’re moving beyond early‑stage investments into the growth‑stage phase. The €120 million will give us the flexibility to capture larger deals, co‑invest with other leading funds, and ultimately deliver higher returns for our limited partners.”

Industry Context

The deal comes at a time when European tech firms are seeking to close the valuation gap that has historically favored U.S. and Asian markets. A recent survey by the European Venture Capital Association (EVCA) found that 62 % of European venture firms are actively seeking cross‑border capital to bridge this gap, especially in the fintech and climate‑tech sectors. Meanwhile, the Swiss financial sector—home to Zurich Avenue—has been increasingly open to venture exposure, recognizing the role of technology in future risk management.

The partnership also dovetails with the European Union’s “Digital Europe” strategy, which aims to create a unified, secure digital market across the continent. By backing companies that can deliver on digital infrastructure, fintech, and resilience, San Sebastián is positioned to align with this long‑term policy agenda, thereby enhancing its appeal to institutional investors.

Forward Look

With the capital now in place, San Sebastián is set to make its first co‑investment in the next quarter, targeting a European fintech firm that has recently raised a €15 million seed round. The firm, known as VividPay, focuses on real‑time payments for small‑to‑medium enterprises (SMEs) in underserved markets. The partnership will also see the launch of a new “Resilience Fund” that will target climate‑tech start‑ups across the EU and the U.S., with an initial €30 million allocation.

In the longer term, the combined IPR VC and Zurich Avenue partnership could pave the way for a multi‑fund structure that pools resources across both regions, creating a “bridge” for European start‑ups looking to scale into the U.S. and Swiss markets. Analysts predict that this could set a new precedent for how cross‑border venture capital deals are structured in the post‑Brexit and post‑pandemic era.

Sources & Further Reading

• Deadline coverage of the investment announcement (link provided).
• IPR VC’s website – overview of portfolio and investment thesis.
• Zurich Avenue’s press release – detailing the firm’s strategy and recent investments.
• San Sebastián Investment’s annual report – 2023 performance metrics.
• EVCA Survey 2024 – Trends in European venture capital.

The partnership between IPR VC, Zurich Avenue, and San Sebastián Investment underscores the growing interconnectedness of the global venture ecosystem. With a focus on technology that drives both growth and resilience, the three firms are poised to deliver value to founders, investors, and the broader economy alike.