“There is a huge opportunity developing in Barcelona. We have incredible tech talent from institutions like the Supercomputing Centre, former operators from successful businesses like Glovo, Factorial, and Travelperk, and international tech talent relocating and choosing to build startups here,” says Carlos Trenchs, co-founder of Barcelona-based angel fund Masia and one of Spain’s most active early-stage investors. This influx of global attention signals a new phase for Spain, which has seen its startup enterprise value more than double since 2020 to exceed €110 billion.
Once defined by real estate and tourism, Spain is fast becoming one of Europe’s most aggressive technology markets. The numbers tell a story of rapid accumulation: the enterprise value of Spanish startups has more than doubled since 2020. By the end of 2025, total startup investment reached €3.1 billion, fuelled by a multi-city expansion that has seen cities like Valencia and San Sebastián rise alongside the traditional hubs of Madrid and Barcelona.
This is not a matter of abstract market signals but of concrete legislative “hooks.” Law 28/2022, the landmark “Startup Law,” has fundamentally altered the cost of doing business. By offering a 15 per cent corporate tax rate, streamlining registration, and introducing a Digital Nomad Visa, the government created a direct path for non-EU founders to enter the market. This pivot was cemented in April 2025 when Spain abolished its property-based Golden Visa scheme, signalling a definitive move toward innovation-driven residency.
However, venture volume and venture maturity are different measures. Alberto Onetti, Chairman of Mind the Bridge and Professor of Entrepreneurship at the University of Insubria, warns that while Spain is prolific at producing startups, it is still learning how to scale them. Graduation rates from seed to Series A remain below the European average, and rounds above €100 million account for just 32 per cent of total venture capital — a figure well below leading peers.
To bridge the gap between “arriving” and “graduating,” the strongest strategic pivot lies in incentivizing late-stage domestic capital. While mixed rounds with foreign investors grew 191 per cent in 2025, the ecosystem remains vulnerable to external shifts. Activating domestic institutional investors to support growth-stage companies would provide the internal “fuel” necessary for local champions to scale. Whether Spain can convert its current momentum into a deep pipeline of late-stage companies will determine if its rise reshapes European technology in a lasting way.
