We're back with an updated version of the Spain Ecosystem Report, which we first co-publish last year.
Since 2019, investment patterns in Spain have become increasingly unpredictable. The stable growth observed from 2013 to 2019 shifted dramatically due to the pandemic’s impact, transforming the market into a veritable roller coaster.
Our 2024 report on Spain’s ecosystem, developed in partnership with Dealroom, Kfund, Wayra, Spaincap, Endeavor, GoHub Ventures, BBVA Spark, and Enisa, reveals a stabilization in market behavior over the past year. Spanish startups secured a total of €2.2b in funding, a figure comparable to the investments in 2021 and 2022, yet surpassing the €1.9b recorded in 2019.
The data from the report suggests that following two extraordinary years marked by post-pandemic surplus liquidity, investment ranges and valuations are aligning with the trends seen between 2013 and 2019. A closer examination of the data highlights that early-stage investments continue to dominate in Spain, with companies raising up to €15 million per round, reaching a cumulative high of over €1b.
However, there is a noticeable deceleration in growth and late stage rounds. Funding rounds between €15 million and €100 million totaled €782 million last year, down from €1b in 2022. The decrease was even more pronounced in rounds exceeding €100 million, dropping from €1b in 2022 to just €405 million in 2023.
The comparison between Europe and Spain further highlights these trends. While Spain outperforms the broader European market in early-stage investment rounds, it lags behind in larger rounds.
In terms of which companies are getting funded, Spain is following a similar trend to other neighboring countries, with B2B SaaS companies attracting the majority of investment. What’s notable is the significant increase in funding going to sectors such as biotech, climate tech and energy, which in our view points to the maturation of the ecosystem and reinforces our focus at Kfund in what we like to call enabling technology.
An analysis of where investments are directed within Spain reveals notable trends. Software as a Service (SaaS) platforms are increasingly favored over marketplaces. Additionally, the health and climate sectors emerge as particularly attractive to investors.
Last year, ventures led by women secured €295 million in investments. From 2019 to 2023, these projects amassed a total of €1.6b, accounting for 12% of the overall investment volume. In this regard, Spain trails behind Finland (22%), Luxembourg (18%), Italy (16%), and Norway (13%) but surpasses major economies like the United Kingdom, France, and Belgium, each capturing between 9% and 10% of their respective total investments.
Madrid led the nation in investment attraction, securing €605 million and outpacing Barcelona, which garnered €457 million. Seville, Valencia, and San Sebastian solidified their spots among Spain’s top five cities with investments of €70 million, €46 million, and €30 million, respectively.
Regarding the sources of these investments, venture capital firms contributed 33% of the total, reaching a new peak for the country. This is a notable increase from the 25% recorded in 2019. Corporate investments also rose, accounting for 16%, up from 10% five years prior.
Spanish investors primarily financed early-stage rounds, maintaining a significant role in medium-sized rounds, although European funds began to play a substantial role in 2023. In contrast, U.S. investors predominantly dominated the larger funding rounds.
This comprehensive overview ranked Spain as the seventh European country in terms of investment volume in 2023. When considering the number of investment rounds conducted, Spain stood fourth, a position it also holds regarding investments in startup projects.
In summary, the report illustrates the present condition of the Spanish market: there is a promising vigor in early-stage projects which are in the midst of solidifying their presence in more advanced business phases. Despite facing challenges, progress is being made steadily, and it is anticipated that this consolidation will continue to strengthen in the coming years.
You can find the report here.
We're back with an updated version of the Spain Ecosystem Report, which we first co-publish last year.
Since 2019, investment patterns in Spain have become increasingly unpredictable. The stable growth observed from 2013 to 2019 shifted dramatically due to the pandemic’s impact, transforming the market into a veritable roller coaster.
Our 2024 report on Spain’s ecosystem, developed in partnership with Dealroom, Kfund, Wayra, Spaincap, Endeavor, GoHub Ventures, BBVA Spark, and Enisa, reveals a stabilization in market behavior over the past year. Spanish startups secured a total of €2.2b in funding, a figure comparable to the investments in 2021 and 2022, yet surpassing the €1.9b recorded in 2019.
The data from the report suggests that following two extraordinary years marked by post-pandemic surplus liquidity, investment ranges and valuations are aligning with the trends seen between 2013 and 2019. A closer examination of the data highlights that early-stage investments continue to dominate in Spain, with companies raising up to €15 million per round, reaching a cumulative high of over €1b.
However, there is a noticeable deceleration in growth and late stage rounds. Funding rounds between €15 million and €100 million totaled €782 million last year, down from €1b in 2022. The decrease was even more pronounced in rounds exceeding €100 million, dropping from €1b in 2022 to just €405 million in 2023.
The comparison between Europe and Spain further highlights these trends. While Spain outperforms the broader European market in early-stage investment rounds, it lags behind in larger rounds.
In terms of which companies are getting funded, Spain is following a similar trend to other neighboring countries, with B2B SaaS companies attracting the majority of investment. What’s notable is the significant increase in funding going to sectors such as biotech, climate tech and energy, which in our view points to the maturation of the ecosystem and reinforces our focus at Kfund in what we like to call enabling technology.
An analysis of where investments are directed within Spain reveals notable trends. Software as a Service (SaaS) platforms are increasingly favored over marketplaces. Additionally, the health and climate sectors emerge as particularly attractive to investors.
Last year, ventures led by women secured €295 million in investments. From 2019 to 2023, these projects amassed a total of €1.6b, accounting for 12% of the overall investment volume. In this regard, Spain trails behind Finland (22%), Luxembourg (18%), Italy (16%), and Norway (13%) but surpasses major economies like the United Kingdom, France, and Belgium, each capturing between 9% and 10% of their respective total investments.
Madrid led the nation in investment attraction, securing €605 million and outpacing Barcelona, which garnered €457 million. Seville, Valencia, and San Sebastian solidified their spots among Spain’s top five cities with investments of €70 million, €46 million, and €30 million, respectively.
Regarding the sources of these investments, venture capital firms contributed 33% of the total, reaching a new peak for the country. This is a notable increase from the 25% recorded in 2019. Corporate investments also rose, accounting for 16%, up from 10% five years prior.
Spanish investors primarily financed early-stage rounds, maintaining a significant role in medium-sized rounds, although European funds began to play a substantial role in 2023. In contrast, U.S. investors predominantly dominated the larger funding rounds.
This comprehensive overview ranked Spain as the seventh European country in terms of investment volume in 2023. When considering the number of investment rounds conducted, Spain stood fourth, a position it also holds regarding investments in startup projects.
In summary, the report illustrates the present condition of the Spanish market: there is a promising vigor in early-stage projects which are in the midst of solidifying their presence in more advanced business phases. Despite facing challenges, progress is being made steadily, and it is anticipated that this consolidation will continue to strengthen in the coming years.
You can find the report here.
