Portuguese investment firm Indico Capital Partners has concluded the first close of its fund, Indico Capital Partners VC I, at 41 million euros ($47.1 million).

The new fund will invest in early-stage startups on the Iberian peninsula, especially those based in Portugal.

The investments came from the European Investment Fund, joined by Instituição Financeira de Desenvolvimento, via the Portugal Tech facility, Draper Esprit, pension funds, education and research institutions, wealth managers, high net-worth individuals and international technology entrepreneurs.

The fund will target startups between $172,300 to $5.7 million per portfolio company in the verticals of business to business software in Portugal and Spain.