The Spanish entrepreneurial ecosystem is experiencing significant growth in the adoption and development of advanced technologies, with a particular “focus on software platforms, artificial intelligence (AI) and analytics.”
This is the key takeaway from the fifth edition of the research study ‘Analysis of a next generation of start-ups in Spain and Portugal’, supported by CaixaBank through DayOne, its division specialized in technology companies and investors, in collaboration with the Entrepreneurship Centre of IESE Business School.
The study is part of the DayOne Observatory of Start-ups, “an initiative that aims to analyse and disseminate information, needs and trends on the entrepreneurial fabric in Spain and Portugal.”
The report analyses the situation, “performance and prospects of the 1,056 companies from Spain and Portugal that participated in the 17th edition of the EmprendeXXI Awards, of which 957 were Spanish, a representative a sample of Spanish startups.”
Software platform companies made up 32% of “the total number of start-ups that participated, followed by AI companies with 15% and data analytics (9%).”
This data unveils the emerging era, in which data analytics and applications “are becoming an essential pillar of competitiveness, and a trend in which software, AI and applications continue to be the fundamental technologies on which start-ups rely to develop their services.”
The data also suggests an “economic future in which knowledge, research and technological innovation are the protagonists, reflecting technological innovation and entrepreneurship. The study also shows technological specialisation at a regional level.”
For example, analytics technology is “more present in Castilla-La Mancha, Castilla y León and Catalonia, where each of these regions contributes 18% of the total number of companies with this technology.”
In contrast, AI has a strong presence in Madrid, which is “home to 25% of AI companies.”
Meanwhile, blockchain technology dominates “in Valencia (31% of the total for this technology), and virtual reality is most present in Catalonia and Andalusia, with 26% and 21% respectively.”
14% of the total number of companies “present at the EmprendeXXI Awards (145 start-ups) have received one million euros or more in funding, a slight increase compared to last year, which had 13% of the total (143 start-ups).”
On technology funding, sectors such as cloud, robotics and hard tech “have averaged more than one million euros in funding and have demonstrated strong growth potential and scalability.”
The source of funding varies, with business angels “playing a prominent role in emerging technologies such as blockchain and hardware, and venture capital in sectors such as crypto and cloud.”
Accelerators and incubators are most involved “with emerging technologies such as extended and augmented reality, crypto and blockchain.”
Compared to the previous edition, the average “funding of companies has increased by 11%, reaching €575,000 , and the presence of business angels in start-ups has increased from 12% to 23%, indicating a greater willingness from private capital to invest in emerging companies. Equity financing has increased from 57% to 70%, indicating a strong commitment from founders and their close circles.”
The capacity to attract investment “increased by 3.5%, reaching €606 million.”
From a territorial perspective, Catalonia tops the list with “an average funding of €1.1 million, followed by the Basque Country (€1.05 million) and Madrid (€764,494).”
The study also shows that there is “a correlation between technologies and sectors: AI is predominantly applied in health (26%) and education (30.2%), while software platforms dominate in the social (39.4%) and digital commerce (64.8%) sectors.”
In contrast, when looking at different technology’s presence “across sectors, there is a great versatility and ability to adapt across a wide range of industries, highlighting their integration and relevance in multiple domains.”
Despite the fact that software platform providers “constitute 32% of the total of companies, they are present in 95% of sectors.”
Meanwhile, AI companies, which represent “15% of start-ups, are present in 76% of the sectors and data analytics companies, which make up 9% of the sample, are present in 73% of industries.”
In terms of the geographical distribution of companies, the study “shows a slight concentration of talent in Catalonia (17%) and Madrid (16%), while the regions of Valencia and Andalusia show robust growth, with 10% and 9% of companies respectively.”
The survey data also shows that new centres “of talent attraction are emerging in cities such as Valencia, Bilbao and Malaga. Also noteworthy is the 50% increase in participants from the Canary Islands as well as 88% from Cantabria.”
