Why launch a startup in Spain?
published on 05.05.21
Spain is not only attractive for its climate and lifestyle, but it is also an excellent place to establish a startup. Its cities have very attractive ecosystems for startups, in addition to having two startup hubs (Barcelona and Madrid) that are among the top 6 in Europe. The country manages to position itself as the third destination for technological talent in Europe and fifth worldwide. Thus According to the Ministerio de Industria, Comercio y Turismo, which also offers a guide with everything you need to know to start a startup in Spain.
Impact of Covid-19
The pandemic has caused havoc in investments in Spanish startups, even so, it has not prevented recovery and strong growth at the end of 2020. 2019 was a record year for Venture Capital investment in Spanish startups, with a historical figure of €723 million. In the third quarter of 2020, after the drop caused by the pandemic, investments recovered, achieving a 46% increase compared to the same period of the previous year.
The state ecosystem is made up of more than 4,000 startups, operating alongside other players, making the country one of the most vibrant in technology in Europe. Barcelona ranks fifth as a reference hub in Europe, followed by Madrid. In addition, Valencia, Bilbao, and Malaga also have highly attractive ecosystems.
Advantages of investing in the Spanish ecosystem
The Ministerio de Industria, Comercio y Turismo highlights among the advantages of investing in the Spanish startup ecosystem, the possibility of accessing a domestic market of 46 million people, as well as a European market of 450 million people. The country is also an entry point to the Latin American market for European startups and vice versa. It also has universities and schools of international prestige that contribute to the creation of specialized and highly trained talent. All this makes the country’s industrial sector highly specialized, with its programs for startups. Spanish companies have one of the highest rates of use and incorporation of ICTs in the world. The state also has more than 80 science and technology parks, as well as international events for entrepreneurs from all over the world.
Accelerators and incubators
Another good reason to start a startup here is a large number of startup accelerators and incubators. There are more than 180 such infrastructures in the country, which help and advise entrepreneurs. Both the public and private sectors support startups, which is key to help them grow.
Also noteworthy is a large number of co-working spaces for entrepreneurs in Spain. According to a report by Mobile World Capital Barcelona, the fact that the country is second in the world in terms of co-working spaces is a sign that the entrepreneurial system is booming.