One billion up for Spain’s startups

One billion up for Spain's startups

For the first time Spain has exceeded one billion euros of capital invested in technology startups.

This is according to a study carried out by Manuel Matés, one of the founders of Big Sur Ventures which invests in such projects. The study looked at investment in ICT and software startups for the period between 2010 and 2017.

In 2017, Spain broke records both in investment in this type of companies – near 1.1 billion euros – and in the number of companies sold to third parties – 389 operations representing a 41 per cent increase on 2016.

Spain has also consolidated the position of its main technological hubs, Barcelona and Madrid, which are listed as the fourth and sixth cities in Europe respectively with the highest volume of investment. While the list is topped by London, Paris and Berlin, Spain is the only European country boasting two leading cities in the category.

Top of the class

The presentation of the data took place in an event entitled Lessons To Undertake And Lead A Startup, which was organized by Big Sur Ventures, Cabecera Books, and Wayra Spain, and was held at Fundación Telefónica.

Spain has become one of the most attractive countries for investment for technology startups, and the study is the most comprehensive carried out so far. Among other findings, it showed that 2017 closed with an historical venture capital investment in software startups and ICT (Information and Communication Technologies), of 1,1 billion euros. This represents an annual compound growth of 33 per cent since 2010 and an increase of 77 per cent when compared to 2016. All this sees Spain is ranked as the fourth country in Europe by investment volume behind the United Kingdom, France and Germany.

The number of operations has also increased. They reached 389 last year, which is 41 per cent more than 2016, and the first quarter of 2017 saw the largest volume of sales operations of startups.

Matés said, ‘This data shows that the Spanish investment market in technology startups is growing and starting to mature.’

Consolidation of capitals

The study also highlights the importance of Barcelona and Madrid where, respectively 85 per cent and 77 per cent of investment operations are concentrated. In 2017, Barcelona received a total investment of 583 million euros in the sector while Madrid managed a respectable total of 430 million euros.

Matés continued, ‘Currently, there is more capital in the market than ever, and more is being invested in Spain by foreign funds from Silicon Valley and Germany. In fact, the growth situation that we are going through now is reminiscent of what happened in our neighboring country, France, in the 2012-2017 period.’

In 2014, France received 1.15 billion dollars in investment, and in 2017, closed the year with an investment in technological startups of 2.77 billion dollars.

However, despite the good news, Matés believes there is still a lot to do to maintain Spain’s growth in this area. He said he had seen many teams of founders developing either uncompetitive products or competitive products in very complicated markets when a different product could have a better chance of success in a different market.

For more information, please contact corporate law firm Argali Abogados

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