Spain is no longer the ugly duckling of the European technological ecosystem. Now has the opposite problem

Spain is ceasing to be the lagged technological ecosystem of Europe. The venture capital funds have invested just over 1 billion euros in 95 Spanish startups only in the first quarter of 2025. That represents an 184% increase on the sum collected in the first quarter of 2024, according to a long report published by Sifted.

Why is it important. Spain is already the Fourth European country in technological financing this yearand its operations count is already close to Germany and France, with populations and income per capita notably higher.

The context. This moment is not accidental, but arrives at the confluence of three factors that have created the perfect storm:

1. The gold fever that is being AI worldwide.
2. Government movements favorable to technology, such as generous fiscal disasters, Visas for Startups and Digital Nomads wave Sett.
3. The appearance of the so -called ‘Mafia founders’: those that have experience in large Spanish companies such as Cabify, Glovo and Job & Talent.

There is a turn here: recent rounds are larger and faster to run than before, according to Sifted in statements from sources in the sector consulted.

In figures:

• 95 capital rounds.
• 910 million euros collected in what we have of a second quarter …
• … which is 90% more than in the second quarter of 2024.

And the trend accelerates: more than half of all financing operations in Spain had at least one foreign investor.

The accumulated in what we have of the year is more moderate if we attend to the figures of The referentwhich reach 1,774 million euros compared to 1910, depending on the methodology and type of operations included.

In any case, the amount is higher than that of any year except 2021, 2022 and 2024. And we have not even reached the 2025 Ecuador.

In the foreground. The big names are here:

Between the lines. It is a change that goes beyond money: that there are Spanish founders contacting large investors is a double sign:

1. Increase confidence in your own startups.
2. They look for better conditions than those offered by Spanish funds.

This contributes to the gap between British and Spanish equivalent rounds, to give an example, reduce.

Yes, but. The background question is whether there really is a change in the trend or if we are simply seeing the consequence of large funds looking for destiny to your money.

And that arrival of foreign funds also represents a dilemma for national risk capital:

• More legitimacy for the ecosystem.
• But also more competition.

Spain has gone from being ignored by the great international funds that its own founders often prefer the conditions that foreign investors can offer. Spanish funds now face a competition that previously existed.

The problem contrary to the one they had five years ago.

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Outstanding image | Per Lööv in Unspash