Spanish tech definitely hasn’t been resistant to the overall slowdown within the markets this 12 months, however issues might undoubtedly be worse.
Whereas it seems like Spanish startups will elevate rather less than they did in 2021, the dropoff in funding quantity within the second half of the 12 months wasn’t something like as dramatic as was seen throughout Europe. General funding into European startups fell from $62.3bn in H1 2022 to $32.1bn in H2 (as of December 20), whereas in Spain the determine fell from $2bn to $1.5bn in the identical interval, in response to knowledge from Dealroom.
This was helped alongside by some chunky raises within the latter half of the 12 months, like HR software program builder Factorial’s $120m Sequence C, which noticed the corporate hit unicorn standing. So-called “soonicorns” additionally raised, together with fraud prevention scaleup Crimson Factors. It introduced a recent €20m funding spherical in November, though it declined to share its valuation — a potential symptom of the broader downward stress on startup pricing in Europe.
However whereas the economic system at all times strikes in cycles — and we’re at present in a tricky second — Spain’s tech startup sector continues to maneuver in the fitting route.
Listed below are a few of the essential moments from Sifted’s Spanish protection in 2022.
Soonicorns and new unicorns
Factorial and Crimson Factors apart, much less recognisable names additionally raised large rounds: cybersecurity startup IriusRisk landed $28.7m to scale its groups in Spain, the UK and the US. The spherical is proof of Spain’s rising popularity as a tech exporter, with founder Stephen de Vries telling Sifted that almost all of the corporate’s purchasers are US-based. Barcelona-based enterprise journey startup TravelPerk additionally reached unicorn standing, after elevating a $115m high as much as its $160m Sequence D.
Deeptech renaissance
Spain’s beginning to produce an increasing number of deeptech success tales, like Crimson Factors and IriusRisk. Quantum computing startup Multiverse Computing was certainly one of Spain’s quickest rising startups this 12 months, whereas photonics startup iPronics raised €3.7m to develop and scale its know-how to construct ultrafast microprocessors.
Different cutting-edge tech corporations highlighted by traders this 12 months embody “edge computing” startup Close by Computing, AI-powered voice modulator tech firm Voicemod and radiology picture evaluation instrument Quibim.
Success outdoors Madrid and Barcelona
One other noticeable — and heartening — development for Spanish tech in 2022 was the rising prominence of startup success coming from outdoors the 2 main hubs of Madrid and Barcelona. The above-mentioned iPronics, Multiverse Computing and IriusRisk are headquartered in Valencia, San Sebastian and Huesca (Aragon), respectively, they usually’re not the one ones making waves from throughout Spain.
Others embody elearning platform Odilo from Cartagena (Murcia), which raised €60m in June, and VR coaching startup Seabery from Huelva (Andalucia), which raised an undisclosed sum in July.
Different fast-growing startups from outdoors the nationwide and Catalan capitals embody industrial 3D printing firm Triditive from Mieres (Asturias), electrical car charging platform Zunder in Palencia (Castile and León) and Sesame HR in Valencia.
An enormous 12 months for Glovo
2022 was additionally an eventful 12 months for Spain’s best-known tech firm Glovo, which kicked off the 12 months with a bang. Simply earlier than the clock struck midnight on New 12 months’s Eve, Supply Hero introduced it could purchase the Barcelona-based meals supply scaleup.
It was a stunning begin to the 12 months for a lot of. Cofounder Oscar Pierre had beforehand advised Sifted that he deliberate to take Glovo all the way in which to an IPO
Given what’s occurred to tech shares on the general public markets on this downturn, and the knock-on impact for IPOs, the timing of the deal might be interpreted as a stroke of genius (Glovo’s shareholders will surely have gotten a greater worth then than they might now).
However that doesn’t imply it’s all been clean crusing for the corporate. In March, former and present Glovo workers described a ruthless “rent and hearth” tradition on the firm, whereas employees at Foodpanda, which Glovo acquired in Might 2021, additionally complained that layoffs has been dealt with “unempathetically”.
Subsequently, information broke that the European Union was investigating Glovo and Supply Hero for presumably working “cartels”, and insiders shared paperwork and testimony with Sifted suggesting Pierre “didn’t take antitrust guidelines severely.”
The digital nomad visa lastly obtained signed off
Individuals from outdoors the EU have been watching one explicit piece of Spanish policymaking with bated breath during the last couple of years: the Startup Legislation. That’s attributable to one particular measure within the laws, which additionally addresses issues like taxation and inventory choices for startups: a brand new visa for digital nomads to enter the nation.
The visa is about to go dwell from March 2023, and can permit individuals to realize the fitting to dwell and work in Spain, and pay a diminished tax price whereas they’re there. The hope is that the transfer will appeal to an prosperous and expert workforce to Spain, who will contribute to the economic system — each by their shopping for energy and by probably incorporating startups within the nation.
Tim Smith is Sifted’s Iberia correspondent. He tweets from @timmpsmith.
