Spain’s startup ecosystem is entering a golden era, bigger, bolder, and more global than ever before. As of 2025, Spain tech ecosystem boasts of 8,580 active tech companies, up 22% from the previous year. Together, these firms generate €14.8 billion in economic impact and provide over 108,000 jobs, according to Ecosistema Startup’s National Tech Companies report.
The surge has lifted Spain to sixth place among Europe’s top startup destinations, ahead of Switzerland and leading all of Southern Europe in innovation and volume. Notably, Spain’s 12 unicorns — including Jobandtalent, Cabify, Glovo, and Wallapop — are spread across four different cities, breaking away from the traditional centralization seen in places like Paris or Berlin.
José Torrego, founder of Ecosistema Startup, says the country’s evolution is about more than just volume. The companies are growing stronger, scaling faster, and grabbing international attention. Behind this progress, however, are deeper shifts in how capital flows, who’s starting companies, and which sectors investors are betting on.
Capital Concentrates on Scalable Innovation
Venture capital is flowing into Spain like never before — but it’s flowing differently. In 2024, startups raised €2.92 billion, up sharply from €1.82 billion in 2023. Despite fewer deals (down to 300 from 337), investors are making bolder bets. Six rounds exceeded €100 million — a sign of rising confidence and ecosystem maturity. Venture debt also surged, reaching €572 million or nearly 20% of total investment.
Luis Llorens González of Plug and Play notes a clear trend: fewer deals, bigger checks, and a sharpened focus on globally scalable innovation. Early-stage activity has become more selective, with rising valuations and intense competition for investor attention. Fintech led the way with €767 million raised, followed by mobility (€507M), traveltech (€456M), and rising sectors like biotech, energy, and AI.
AI in particular has become a baseline feature in most new ventures. As Llorens puts it, “It’s embedded in nearly everything we see.” International capital is also playing a growing role, particularly in large late-stage rounds. While local funds often lack the capacity to lead those, major international players like a16z, Sequoia, and Northzone are stepping in — signaling long-term global interest in Spain’s startups.
Still, early-stage valuations have raised some concern. Llorens warns that inflated pre-seed numbers may become a challenge down the line if companies fail to meet their growth expectations.
Madrid vs. Barcelona: A Tale of Two Tech Hubs
Madrid has quietly edged ahead of Barcelona in terms of tech company count (1,560 vs. 1,553), startups (937 vs. 911), and scaleups (112 vs. 93). More strikingly, it attracted 85.3% of all foreign tech investment in 2024. Torrego calls it the top emerging ecosystem, praising Madrid’s business-friendly environment and its appeal to international talent, especially from Latin America.
Yet not everyone agrees Madrid has taken the crown. Carlos Trenchs of Masia argues that Barcelona continues to thrive, especially in deep tech and AI, fueled by scientific spin-offs and a new wave of second- and third-time founders. The city remains a magnet for global talent and benefits from a rising pool of angel investors linked to previous startup successes like Glovo and Factorial.
Catalonia still leads by region with 2,351 tech firms, ahead of Madrid’s 2,189. Other growing hubs include the Valencian Community (966), Basque Country (831), and Andalusia (714), indicating a broader regional spread of digital talent across Spain.
Startup Law, Gender Gaps, and the Road Ahead
Spain’s 2023 Startup Law has had a major impact, offering tax cuts, stock option incentives, and digital nomad visas. Combined with €1.5 billion in public funding via Fond-ICO and EU support, this policy framework has sparked real momentum.
In 2025 alone, the number of startups jumped by 38%, reaching 5,010 and adding 28,900 new jobs. The country now has 484 scaleups — firms growing revenue by 20%+ annually for two straight years — showing real ecosystem maturity. Legal and tax reforms have made Spain one of Europe’s most hands-on governments when it comes to startup support, helping the country fast-track its tech growth.
But one big challenge remains: gender disparity. Only 17% of tech startup founders are women — and just 10% in scaleups. The numbers improve slightly in sectors like AI and healthtech, but the gap is clear. Of the women who do launch companies, fewer do so solo — only 852 compared to 3,676 male solo founders. Regions like Catalonia (645) and Madrid (581) lead in female founder count, but percentages hover between 17–20%.
Torrego points out that systemic issues — from lack of mentorship to funding bias — continue to hold women back. However, female entrepreneurship is slowly rising, with intention rates increasing from 8.8% in 2022 to 10.9% in 2023.
Looking ahead, Spain’s ecosystem shows no signs of slowing. With 270 exits totalling €13 billion since 2020 and the potential to double its unicorn count by 2025, the momentum is real. The blend of strong talent, proactive policy, and growing international capital makes this a defining moment.
As Torrego puts it, “We’re just beginning to see what Spain is capable of. The next two years could be transformative.”
