Is Spain’s Startup Ecosystem Ready for the Next Level?
Spain’s startup sector is strong, but can it grow fast enough to stay globally competitive?
Spain’s Startup Growth Is Impressive — But Is It Enough?
Spain’s startup ecosystem has seen steady growth in recent years, especially in 2021 and 2022 when it outpaced many European countries. Even in 2023, during global economic uncertainty, Spain remained one of the most stable innovation hubs in Europe.
This progress is backed by strong fundamentals:
- A thriving startup scene supported by over 15 major tech events each year, including South Summit and Mobile World Congress.
- More than 120 active investors backing early and late-stage companies.
- A growing base of 1,194 startups that have raised a total of $22.6 billion, placing Spain fourth in Europe.
- Increasing maturity, with 42 startups securing over $100 million in funding and two surpassing the $1 billion mark.
Falling Behind Global Leaders
Despite solid numbers, Spain’s startup growth is slower than in some newer innovation leaders. Countries like South Korea and Australia have outpaced Spain in the last decade. For example:
- South Korea now has 2,127 scaleups — nearly double Spain’s total.
- Australia has 1,512, about 1.5 times more than Spain.
What’s behind this gap? Many global competitors benefit from stronger government support and better access to funding. South Korea’s Global Unicorn Project, for instance, has become a model for accelerating startup growth through public initiatives.
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Barcelona and Madrid: A Dual-Engine Model with Mixed Results
Unlike countries with one dominant startup hub, Spain splits its innovation activity between Barcelona and Madrid:
- Barcelona hosts 42% of Spain’s startups and gets 47% of the funding.
- Madrid holds about one-third of startups and attracts 39% of investment.
This dual-core model spreads economic opportunity and reduces overconcentration. It avoids the urban strain seen in cities like London or Paris. However, it also means neither city reaches the scale needed to compete with top global hubs. According to growth stage analysis, both Barcelona and Madrid are still in the “Early Scaleup” phase and may not progress further by 2025.
What’s Next for Spain’s Startup Future?
Spain’s startup ecosystem has clear strengths: strong community, solid funding, and a balanced geographic model. But to stay globally relevant, it needs to move faster and go bigger.
That means:
- Stronger collaboration between the public and private sectors
- Focused investment in emerging technologies
- More international partnerships to help startups scale beyond national borders
One promising initiative is the proposed España Tech Alliance, inspired by France’s La French Tech. But more bold actions are needed to truly transform Spain into a top-tier startup destination.