If 11 figures is your consideration threshold, you could be serious about studying that the mixed enterprise worth (EV) of Spanish startups surpassed €100 billion in 2023, based on Dealroom’s newest report on the Spanish tech ecosystem. As we’ll see, enterprise funding into Spanish startups additionally held up fairly effectively, with €2.2BN raised throughout some 850 funding rounds.
Spain’s enterprise capital tally was decrease final yr than in 2021 and 2022; that’s no shock as these years had been outliers. In contrast to different locations, although, the nation hasn’t fallen beneath pre-pandemic ranges of exercise. In 2019, for reference, Spanish startups had collectively raised €1.9BN in enterprise capital.
However first, there are a number of methods to have a look at Spain’s 11-figure startup EV. On the one hand, it places Spain forward of Norway, Italy or Portugal. However, with a mixed worth of $191BN, Cambridge’s tech ecosystem alone is sort of price double Spain’s. (With $1 price €0.92 at present, please forgive us for skipping conversions.)
Lots may very well be mentioned on whether or not Spain is doing sufficient to help entrepreneurship — however for at present, let’s keep on with info and numbers.
Including time as an element, France reached €100BN in mixed startup EV six years in the past, and Germany 9 years in the past. However the worth of Spanish tech can also be one of many quickest rising in Europe, Dealroom famous in a slide. Give them extra time, and possibly some Spanish startups will grow to be decacorns and extra, too.
Right here’s the funnel based on the report:
With a complete of €2.2BN in enterprise funding, 2023 outcomes moved the needle in the appropriate path, however principally for the highest of the funnel. Funding quantity for “Early-stage” — pre-seed, seed and Sequence A — was at an all-time excessive final yr, and the Sequence B and Sequence C levels remained robust. Nonetheless, late stage exercise was “quiet,” per Dealroom, with solely two mega-rounds (into veteran information administration platform Denodo, which has lengthy since relocated to the US; and the data-driven occasions startup Fever.)
The slowdown in late stage exercise isn’t distinctive to Spain however, like elsewhere, it may very well be a priority. Startup exercise isn’t solely a funnel: It’s also alleged to be a circle.
As an illustration, high-profile scaleups usually flip into founder factories; in Spain, it’s been the case with Fever, but in addition Cabify, job&expertise, Glovo and wallbox. However with out liquidity occasions, it turns into tougher for former staff to grow to be angels or begin new firms.
That’s additionally a necessity on the VC facet, with exits offering liquidity that may be reinjected into early stage offers. With out giant M&As and IPOs, there’s at all times a danger funds will likely be disadvantaged of capital to take a position anew.
Spanish VCs don’t appear frightened, although; time will do its factor, they recommend. Jaime Novoa, a accomplice at Kfund, commented within the report that he and his colleagues are “very confident that several companies being funded now will become scaleups in the next five to ten years.” He cited as a optimistic sign how early stage exercise “remains very healthy.”
Not solely is the early stage fairly energetic, however the groups getting funded are additionally in keeping with what Europe could need to see extra of. Most of 2023’s VC funding into Spanish startups went to local weather tech, adopted by biotech and clear vitality. It’s too early to inform what number of of those may grow to be centaurs, however it’s going to positively be price monitoring.
