If 11 figures is your consideration threshold, you could be concerned with studying that the mixed enterprise worth (EV) of Spanish startups surpassed €100 billion in 2023, in keeping with 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 have 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 take a look at Spain’s 11-figure startup EV. On the one hand, it places Spain forward of Norway, Italy or Portugal. Alternatively, with a mixed worth of $191BN, Cambridge’s tech ecosystem alone is sort of price double Spain’s. (With $1 price €0.92 right now, please forgive us for skipping conversions.)
Quite a bit may very well be mentioned on whether or not Spain is doing sufficient to assist entrepreneurship — however for right now, let’s follow details 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 perhaps some Spanish startups will turn out to be decacorns and extra, too.
Right here’s the funnel in keeping with 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 phases remained sturdy. Nonetheless, late stage exercise was “quiet,” per Dealroom, with solely two mega-rounds (into veteran knowledge 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 imagined to be a circle.
As an example, high-profile scaleups usually flip into founder factories; in Spain, it’s been the case with Fever, but additionally Cabify, job&expertise, Glovo and wallbox. However with out liquidity occasions, it turns into harder for former staff to turn out to be angels or begin new corporations.
That’s additionally a necessity on the VC aspect, with exits offering liquidity that may be reinjected into early stage offers. With out giant M&As and IPOs, there’s all the time a danger funds can be disadvantaged of capital to speculate anew.
Spanish VCs don’t appear apprehensive, although; time will do its factor, they recommend. Jaime Novoa, a companion 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 might turn out to be centaurs, however it is going to positively be price monitoring.
