In case your consideration span is 11 digits, you could be to know that the mixed enterprise worth (EV) of Spanish startups will exceed €100 billion in 2023, in keeping with Dealroom’s newest report on the Spanish tech ecosystem. As we’ll see, enterprise capital funding in new Spanish startups additionally carried out effectively, with €2.2 billion raised in roughly 850 funding rounds.
Whole enterprise capital funding in Spain final yr was decrease than in 2021 and 2022; this isn’t shocking as these years have been outliers. Nevertheless, in contrast to elsewhere, exercise within the nation has not fallen beneath pre-pandemic ranges. For reference, Spanish startups raised a complete of €1.9 billion in enterprise capital in 2019.
However first, there are a number of methods to take a look at Spain’s 11-figure electrical automobile innovation. On the one hand, it places Spain forward of Norway, Italy or Portugal. However, the full worth of the Cambridge tech ecosystem reaches $191 billion, virtually twice that of Spain. ($1 at present is value €0.92, please excuse us as we skip the conversion.)
Lots may be mentioned about whether or not Spain is doing sufficient to help entrepreneurship, however at present, let’s stick with info and figures.
Considering the time issue, the full scale of latest electrical automobile improvements in France reached 100 billion euros six years in the past, whereas in Germany it reached 100 billion euros 9 years in the past. However Dealroom identified within the slideshow that the worth of Spanish expertise can also be one of many quickest rising in Europe. Give them extra time and possibly some Spanish startups will even grow to be decacorns and so forth.
Right here is the funnel within the report:
The 2023 outcomes carry the full enterprise capital funding to €2.2 billion, transferring in the fitting path, however primarily concentrating on the highest of the funnel. Funding quantity on the “early-stage” stage (pre-seed, seed and Sequence A) hit an all-time excessive final yr, with funding quantity on the Sequence B and Sequence C phases remaining sturdy. Nevertheless, late-stage exercise has been “quiet,” in keeping with Dealroom, with simply two massive funding rounds (getting into veteran knowledge administration platform Denodo, which has lengthy since moved to the U.S.; and data-driven occasions startup Fever.)
The late-stage slowdown in exercise will not be distinctive to Spain, however as elsewhere it may very well be a trigger for concern. Entrepreneurship is greater than a funnel: it ought to be a circle.
For instance, high-profile scale-ups usually flip into founder factories; this was the case with Fever in Spain, in addition to Cabify, job&expertise, Glovo and wallbox. However with no liquidity occasion, it turns into harder for former staff to grow to be angel buyers or begin new corporations.
That is additionally obligatory for enterprise capital, the place exits can present liquidity that may be re-infused into earlier offers. With out large-scale M&A and IPOs, capital is disadvantaged of reinvestment.
Spanish enterprise capitalists do not appear apprehensive, although; time will play its half, they are saying. Kfund companion Jaime Novoa commented within the report that he and his colleagues are “very assured that a number of of the businesses funded now will scale over the following 5 to 10 years.” He cited early-stage exercise that “stays very wholesome.” Constructive sign.
Not solely are the early phases very lively, however the groups receiving funding are additionally in step with what Europe would possibly need to see extra of. Nearly all of enterprise capital funding in new Spanish startups in 2023 was invested in local weather applied sciences, adopted by biotech and clear vitality. It is too early to inform what number of of those could be centaurs, however it’s positively value monitoring.
