At the San Sebastián International Film Festival, running from September 18 to 26, a central theme will be the evolution and impact of SETT (Sociedad de capital-Riesgo ESPAÑA), the venture capital vehicle operated by Spain’s Ministry for Digital Transformation. Javier Ponce, the fund’s director general, and María Coronado, its audiovisual director, will offer a detailed examination of how state-backed investment is reshaping the Spanish creative landscape.
Established under Spain’s Recovery Plan and funded through the European Union’s Next Generation EU program, SETT manages the Spain Audiovisual Hub Fund. The fund aims to act as a catalyst for growth, job creation, innovation, and talent development within the sector. By providing equity or quasi-equity financing—either directly or through intermediaries—SETT seeks to mobilize private capital for high-impact projects involving film, television, animation, and interactive media, while ensuring production companies retain their intellectual property rights.
Ponce explained that the fund’s co-investment model addresses a market gap: innovative projects often carry risks that deter purely private investors. By partnering with SETT, companies gain access to funding in sectors where liquidity has historically been difficult to achieve without public support. The fund had the potential to draw down up to €1.5 billion ($1.75 billion) from EU funds. According to María Gonzalez Veracruz, approximately €250 million has been invested so far, a figure Ponce attributes to strict implementation deadlines inherent to European recovery funding and the time required for market participants to adapt to public-private partnerships.
Looking ahead, Ponce confirmed that the audiovisual sector remains a strategic priority under the new “España Crece” program, which carries a €13.3 billion ($15.6 billion) budget managed by the Instituto de Crédito Oficial (ICO). SETT will collaborate with ICO to continue co-investing in key technologies and industries, signaling that the fund’s influence will extend beyond its initial mandate.
Coronado highlighted the tangible results of SETT’s approach, citing recent transactions that underscore the model’s effectiveness. Notable examples include co-investments in South African productions The Refinery and Moonlighting, totaling €25 million, as well as support for animation studios Amuse Labs and Milo, which secured €13 million and €19 million respectively. She emphasized that SETT operates on a pari passu basis, meaning public money is deployed alongside private investors under identical terms, thereby validating the investment for other market players.
According to Coronado, the introduction of sovereign venture capital has fundamentally shifted industry mindsets. Rather than focusing solely on immediate project needs, companies are now encouraged to adopt medium- to long-term business strategies that strengthen their capital bases, protect intellectual property, and facilitate international expansion.
Looking forward, Coronado identified several key areas for consolidation, including the development of infrastructure for large-scale productions, enhanced technical training, and a continued focus on diversifying financing options to meet cash-flow needs. She noted that future iterations of the program will allow more time for business plans to mature and for private investment commitments to be secured.
The festival will feature significant SETT programming. On September 20, the Secretary of State for Digitalisation and Artificial Intelligence will host an event showcasing the fund’s progress and ongoing projects. Two days later, on September 22, Coronado will participate in a panel discussion at the CAA’s Spanish Screenings Investment & Tech conference, followed by an exclusive roundtable with international and Spanish investment funds and banks. Additional announcements are expected throughout the festival.
The pari passu approach is smart. Getting public money to validate risks for private investors could genuinely transform the Spanish AV sector.
€250 million so far? That seems cautious. I wonder if EU bureaucratic deadlines are slowing things down more than intended.
Interesting to see sovereign wealth funds stepping up where private capital hesitates. Hope this actually reaches smaller production houses too.