Spanish startups broke records last year, valuing at an astounding €100 billion. They managed to outperform countries such as Norway, Italy, and Portugal, even amidst investments totaling to €2.2BN in 850 funding rounds.
Despite a slight dip in overall venture capital compared to preceding years, Spanish startups displayed remarkable performance. In fact, in 2019, venture capital targeting Spanish startups was at €1.9BN, indicating Spanish startups’ robust performance and potential for competitiveness at a global scale.
Once falling behind, Spain’s tech sector now radiates significant growth signs. Rapid growth in value suggests that Spanish startups could morph into megafirms. The progression is buoyed by government initiatives, international investor support, and a surge in job opportunities.
Spanish startups’ ascent to global competitiveness
Forecasters expect this growth to continue as tech startups continue to innovate multiple business sectors.
In 2023, Spain’s investment strategy heavily favored early-stage startups, marking record highs in pre-seed, seed, and Series A funding. However, there was a slowdown in late-stage startup funding. The Spanish government fostered startup growth and innovation by introducing incentives and tax reliefs for investors, sparking a new entrepreneur wave in various sectors.
Venture capital partner, Jaime Novoa, anticipates many currently funded businesses will flourish as successful scale-ups in the next five years. This anticipation is founded on sustained early-stage investments and the upward trend in the startup ecosystem.
Majority of the venture capital investments in 2023 were channelled towards Spanish startups in the climate tech, biotech, and clean energy sectors. These sectors, along with fintech and edtech, are expected to breed the future generation of unicorn companies.
Venture capitalists showed keen interest in areas abundant in highly skilled labor and strong local entrepreneurship support. With a steep upward trend, it’s foreseeable the investment surge will continue, fostering more advancements in these sectors.
