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§ Venture Capital · Madrid, Spain
Venture debt fund for early-stage Spanish tech, investing via debt & equity in fintech, insurtech, proptech, cleantech, e-commerce.
Key people at Extension Fund.
Extension Fund is a venture debt fund based in Madrid and Barcelona, Spain, that invests in early-stage technology companies through a combination of debt and equity instruments. The firm targets domestic startups ranging from the pre-seed to Series B stages, utilizing flexible financial structures such as convertible notes and traditional venture debt. Its core investment strategy focuses on high-growth sectors within the Spanish market, specifically targeting enterprises operating in fintech, insurtech, proptech, cleantech, and e-commerce. Beyond direct capital allocation, the organization provides strategic support and access to broad business development networks by structuring financing alongside various national and international partners. Specific quantitative metrics regarding the firm's total assets under management, recognizable portfolio company names, and overall funding deployed currently remain undisclosed. Furthermore, the exact founding year and the specific identities of the original founders are not publicly available.
Extension Fund is a pioneering hybrid venture debt and convertible notes fund based in Madrid and Barcelona, Spain, focused on supporting ambitious early-stage technology startups from pre-seed to Series B. Their mission is to empower bold entrepreneurs building global companies by providing flexible financing solutions that combine debt and equity conversion, tailored to the growth stage of each company. They specialize in sectors such as fintech, insurtech, proptech, cleantech, and e-commerce, leveraging deep operational expertise and a strong network to accelerate portfolio company growth and scale internationally[1][2][3].
Founded by experienced investors and entrepreneurs with backgrounds in investment banking and venture capital, Extension Fund was established to fill a financing gap in Spain’s startup ecosystem by offering venture debt and convertible notes as alternatives to traditional equity rounds. Key partners include Ignacio, a former Goldman Sachs Executive Director with a decade in debt products, and Jordi, a seasoned seed investor with multiple exits. Their approach evolved to blend short-term convertible notes for early-stage companies with venture debt for more mature startups, enabling startups to extend their runway and scale efficiently while preserving equity[2][5].
Extension Fund rides the growing trend of venture debt as a complementary financing tool in the European startup ecosystem, especially in Spain where venture debt options have been limited. The timing is critical as startups seek to extend capital efficiency amid fluctuating equity markets and economic uncertainty. By providing hybrid debt-equity instruments, Extension Fund helps startups optimize their capital structure, reduce dilution, and accelerate growth. Their presence strengthens the Spanish tech ecosystem by enabling more sustainable scaling paths and attracting international attention to local startups[1][3].
Looking ahead, Extension Fund is well-positioned to expand its footprint as venture debt gains traction across Europe. Trends such as increased startup capital needs, cautious equity markets, and the rise of hybrid financing models will likely drive demand for their offerings. Their influence may grow as they deepen sector expertise and broaden their network, potentially becoming a key enabler of Spain’s emergence as a global tech hub. Extension Fund’s hybrid model and founder-centric approach offer a compelling blueprint for venture debt firms aiming to balance growth support with capital efficiency[1][2][3].
Extension Fund has 11 tracked investments across 7 companies. The latest tracked deal is $9.3M Other Equity in VIVLA in July 2025.
Key people at Extension Fund.
