Spain’s Tech Ecosystem: A Watershed Moment

Spain’s tech ecosystem is experiencing a transformative phase, marked by significant growth and global recognition. In 2025, the country boasts 8,580 active tech companies, reflecting a remarkable 22% increase from the previous year. These firms generate an impressive €14.8 billion in annual economic impact and employ over 108,000 individuals, according to the latest report from Ecosistema Startup.

A Rising Star in Europe

Spain has emerged as Europe’s sixth most attractive startup destination, surpassing Switzerland and leading Southern Europe in both volume and innovation. The country is home to 12 unicorns, including notable names like Jobandtalent, Cabify, Glovo, and Wallapop. These unicorns are distributed across four cities, showcasing a regional diversity that is often lacking in traditional tech hubs like Paris or Berlin.

José Torrego, founder of Ecosistema Startup, emphasizes the rapid maturation of Spain’s ecosystem. “We’re seeing not just more companies, but stronger ones with the ability to scale and attract international attention,” he notes.

Capital Trends: Fewer Bets, Bigger Checks

In 2024, Spanish startups raised €2.92 billion, a significant increase from €1.82 billion in 2023. This growth is attributed to larger funding rounds, increased venture debt, and capital consolidation among high-potential startups. Notably, venture debt accounted for €572 million, or 19.6% of total investment.

While the number of deals decreased from 337 to 300, the emergence of six rounds exceeding €100 million—up from just one in 2023—signals growing investor confidence and ecosystem maturity.

Luis Llorens González, Principal at Plug and Play, explains, “Spain is seeing capital concentrate around high-potential startups, with fewer bets but stronger backing.” He adds that early-stage activity has become more competitive, focusing on standout companies with larger rounds and higher valuations.

Fintech led the funding landscape with €767 million, followed by mobility (€507 million) and traveltech (€456 million). Emerging sectors like biotech, energy, and AI are also gaining traction, with AI becoming a foundational element in nearly every new venture.

The investor landscape is evolving, with foreign capital playing a crucial role in large funding rounds. “International funds like a16z, Sequoia, or Northzone are increasingly active here,” Llorens notes, highlighting the strong global interest in Spain’s tech ecosystem.

Madrid vs. Barcelona: The City Showdown

For the first time, Madrid has surpassed Barcelona in the total number of tech firms, startups, and scaleups. Madrid now hosts 1,560 tech firms compared to Barcelona’s 1,553, and it attracted 85.3% of all foreign tech investment in 2024.

Torrego asserts, “Madrid is now the leading emerging ecosystem. It offers entrepreneurs a solid and safe environment and has a strong capacity to attract international talent, especially from Latin America.”

However, not everyone agrees with the “Madrid first” narrative. Carlos Trenchs, founding partner at Masia, expresses skepticism, noting strong trends in Barcelona, such as local second-time founders starting new ventures and an influx of international talent.

Barcelona continues to excel in attracting science and SME-background founders, particularly in deep tech, AI, and biotech. The city leads in academic and scientific spin-offs, with Catalonia accounting for 255 of the 588 nationwide.

Policy Tailwinds and International Ambitions

Spain’s 2023 Startup Law has been a game-changer, introducing corporate tax cuts, enhanced stock option incentives, and digital nomad visas. Coupled with €1.5 billion in public funding from Fond-ICO and EU-backed initiatives, these changes are fueling sustained growth.

Entrepreneurship is on the rise, with startups increasing by 38% from 3,640 in 2024 to 5,010 in 2025, creating 28,900 new jobs and generating an additional €1.33 billion in economic impact. The ecosystem now supports 484 scaleups, marking a significant milestone in its maturity.

Llorens emphasizes the importance of the government’s proactive approach, stating, “Spain’s tech ecosystem is clearly maturing. There’s stronger talent, more experienced founders, and growing international interest.”

The Gender Gap: A Persistent Challenge

Despite the momentum, a significant gender gap persists in Spain’s tech landscape. Only 17% of startup founders are women, a figure that drops to just 10% in scaleups. While sectors like healthtech and AI show better representation, the overall numbers highlight systemic issues that women face in raising funding and scaling businesses.

Women are less likely to found companies alone, with only 852 doing so without co-founders compared to 3,676 men. The disparity widens in scaleups, where women represent only 10% of founders.

Torrego points out that the barriers women encounter are systemic, including lack of visibility, cultural bias, and fewer role models. However, there are signs of change: women’s entrepreneurial intention rose from 8.8% in 2022 to 10.9% in 2023, and regional initiatives supporting female entrepreneurship are gaining traction.

What’s Next for Spain’s Tech Ecosystem?

Looking ahead, the future of Spain’s tech ecosystem appears promising. Expectations include more exits, stronger international ties, and potentially doubling the unicorn count by 2025. Since 2020, the country has seen 270 exits totaling €13 billion, indicating a clear trend toward ecosystem maturity and liquidity.

“We’re just beginning to see what Spain is capable of,” Torrego concludes. “The talent is here. The capital is coming. The next two years could be transformative.”