Spain’s tech ecosystem is having a watershed moment — bigger, bolder, and more global than ever. In 2025, the country hosts 8,580 active tech companies, a 22% increase from last year. These companies generate €14.8 billion in annual economic impact and employ over 108,000 people, according to Ecosistema Startup’s latest National Tech Companies report.
The country has become Europe’s sixth most attractive startup destination, surpassing Switzerland and leading Southern Europe in volume and innovation. Its 12 unicorns, including Jobandtalent, Cabify, Glovo, and Wallapop, are distributed across four cities, showcasing a regional diversity uncommon in traditional hubs like Paris or Berlin.
“Spain’s ecosystem is maturing fast,” says José Torrego, founder of Ecosistema Startup, in a conversation with TFN. “We’re seeing not just more companies, but stronger ones with the ability to scale and attract international attention.”
But behind the topline growth are major shifts in how — and where — capital is flowing, who is founding companies, and what kinds of startups are winning investor attention.
Capital Trends: Fewer bets, bigger checks
Spanish startups raised €2.92 billion in 2024, up from €1.82 billion in 2023. This growth stems from larger rounds, increased venture debt, and capital consolidation among high-potential startups. Venture debt comprised €572 million, 19.6% of total investment.
While the number of deals fell from 337 to 300, six rounds exceeded €100 million, compared to just one in 2023, indicating growing investor confidence and ecosystem maturity.
Luis Llorens González, Principal at Plug and Play, told TFN exclusively: “Spain is seeing capital concentrate around high-potential startups, with fewer bets but stronger backing, and a clear move toward scalable, globally relevant innovation. Early-stage activity has declined in volume but become more competitive, with bigger rounds and higher valuations focused on fewer standout companies.”
Fintech led funding with €767 million, followed by mobility (€507M), traveltech (€456M), and emerging sectors like biotech, energy, and AI. AI has become foundational: “It’s embedded in nearly every new venture we see,” Llorens notes.
And the investor mix is changing, too. “Foreign capital plays a crucial role, especially in the large funding rounds,” notes Torrego. “Local funds often don’t have the capacity to lead those €100M+ investments, so international investors are stepping in.”
“International funds like a16z, Sequoia, or Northzone are increasingly active here, which signals a strong global interest in Spain’s tech ecosystem and its long-term potential, says Llorens González. Yet, there’s a word of caution: “I’m slightly concerned about high pre-seed valuations. While early rounds are becoming more competitive, Series A and beyond remain more metric-driven. That gap could pose challenges if companies don’t grow into their valuations. Overall, it’s an exciting moment”
Madrid leads by city, Catalonia by region
For the first time, Madrid has edged out Barcelona in total number of tech firms (1,560 vs. 1,553), startups (937 vs. 911), and scaleups (112 vs. 93). The capital also attracted 85,3% of all foreign tech investment in 2024.
Torrego adds, “Madrid is now the leading emerging ecosystem. It attracts 85.3% of all foreign tech investment and offers entrepreneurs a solid and safe environment. Madrid also has a strong capacity to attract international talent, especially from Latin America. And the density of events and initiatives makes it easy for entrepreneurs and investors to connect ”
But not everyone agrees with the “Madrid first” narrative. Carlos Trenchs, founding partner at Masia, which recently raised $20M, shares with TFN, “I’m uncertain about Madrid surpassing Barcelona. I observe three strong trends in Barcelona: local second-time founders starting new ventures, international talent relocating to the city, and many second — and third-time founders deciding to move here. We’re also seeing a new generation of angel investors and seed funds emerging from successful founders at Glovo, Factorial, and others.”
Barcelona maintains its edge in attracting science and SME-background founders, leading in deep tech, AI, and biotech, particularly university spin-offs. Of 588 academic and scientific spin-offs nationwide, Catalonia leads with 255, followed by Madrid (137) and the Basque Country (84).
“Founders here often come from science and SMEs, while they mostly have corporate or consulting backgrounds in Madrid. “Barcelona’s venture-backed startups are drawing significant international capital, especially for AI and deep tech, ”Trenchs explains.
This blend of experienced founders and international investors is accelerating momentum. “Spain was close behind other, more mature ecosystems. But it is maturing rapidly and attracting international talent. If these groups can mix and build, the growth will be significant.”
Regionally, Catalonia leads with 2,351 tech companies, followed by Madrid with 2,189, after adding 512 new firms in just one year. The Valencian Community (966), Basque Country (831), Andalusia (714), Galicia (388), Region of Murcia (207), Castilla y León (139), Navarra (135), and Asturias (124) complete the top ten, reflecting growing regional distribution of digital talent and enterprise.
Policy tailwinds and international ambitions
Spain’s 2023 Startup Law has proved transformative, introducing corporate tax cuts, enhanced stock option incentives, and digital nomad visas. Combined with €1.5 billion in public funding from Fond-ICO and EU-backed initiatives, these changes fuel sustained growth.
Entrepreneurship is surging: Startups increased 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 — companies maintaining 20%+ annual revenue growth for at least two consecutive years, marking ecosystem maturity.
The government’s hands-on approach, including legal and tax reforms, is unusual for Europe and is a key reason why the ecosystem matures so quickly. Llorens González adds: “Spain’s tech ecosystem is clearly maturing. There’s stronger talent, more experienced founders, and growing international interest. Global funds are no longer just watching; they’re investing.”
But one big problem remains: The gender gap
Despite the momentum, only 17% of startup founders in Spain’s tech are women, which falls to just 10% in scaleups. While healthtech and AI show better gender representation (23–26%), the numbers reveal a broader issue: women still struggle to raise funding or scale businesses in tech.
Women are less likely to found companies alone: just 852 do so without co-founders, compared to 3,676 men. The disparity widens in scaleups, where women represent only 10% of founders, though this rises slightly to 18% in startups. Catalonia (645), Madrid (581), the Valencian Community (261), and Andalusia (195) lead in female founders, though their proportion remains between 17% and 20%.
“The barriers women face are systemic. They’re the same ones that affect women in many other industries: lack of visibility, cultural bias, and fewer role models or mentors. And they’re less likely to get funded, especially with so few female-led VC firms,” says Torrego.
Yet change is emerging: women’s entrepreneurial intention rose from 8.8% in 2022 to 10.9% in 2023, and regional initiatives supporting female entrepreneurship are growing. Catalonia leads with 342 women founders (30% of Spain’s total), followed by Madrid with 318 (28%).
What’s next for Spain’s tech ecosystem?
The future promises acceleration: more exits, stronger international ties, and potentially doubling Spain’s unicorn count by 2025. Since 2020, the country has seen 270 exits totalling €13B, with numerous acquisitions by industrial players and international tech firms — clear signs of ecosystem maturity and liquidity.
“We’re just beginning to see what Spain is capable of,” says Torrego. “The talent is here. The capital is coming. The next two years could be transformative.”
