The Spanish startup ecosystem is steady and continues to grow each year. With two main hubs, Madrid and Barcelona, the southern European country is considered to be one of the most popular destinations for professionals looking for a new opportunity, entrepreneurs starting out and startups that wish to relocate or start from zero in a new place.
The startup ecosystem is rapidly growing in both main cities, but also those that get overshadowed by the capital and Catalan city. Valencia, Bilbao and Sevilla are quietly, but powerfully growing to hopefully bring a little bit of healthy competition in the near future.
Madrid and Barcelona have been making a name for themselves in the European and global startup scene for the last 10 years. The capital —that is also the financial centre — enjoys proximity to the governmental powers and big multinational companies, which is why it’s normal to find more fintech startups in Madrid. Whereas Barcelona is generally known for tech and travel centred companies.
2020 has been tough on Spain. Even though the national government took action quite fast, it wasn’t enough. All non-essential activity was closed for a bit more than two months and the population was put on a national lockdown that extended from mid-March to mid-May when restrictions started to ease out. Things seemed to die down during the summer but started to pick up again in September when then regional governments had the reigns on the situation.
The economy has been shaken up and studies show that it will be one of the slowest countries in Europe to climb back from the Covid-19 crisis. With the opening and closing of many of the pillar sectors, like hospitality, tourism and events, Spain has some rough years ahead.
It’s not all bad news, though. Even though investment has dropped compared to last year, the startup ecosystem is standing strong. Spain is home to globally known startups like Glovo and TravelPerk, based in Barcelona; and Cabify and Fintonic in Madrid.
Live the startup dream in Spain
One of the main reasons why Spain is the desired destinations for many professionals is related to the overall good weather, the culture and, for startups, the cost of living. While Spain is not between the powerful EU economies at the moment, the costs of living are significantly lower than in other European countries, which reflects the salaries. Madrid and Barcelona are actually quite expensive, but secondary cities like Valencia and Bilbao offer cheaper living costs and similar, if not equal, salaries.
According to Startups Real, the startup investment is going through a rough patch at the moment, seeing that the first four months of 2020 the total investment in the country was €200M, almost €150M lower than the previous year, 2019. Even with the ups and downs, Madrid’s MOVO landed a €10M investment from Delivery Hero and Barcelona’s Factorial HR €15M from CRV Inc.
As of 2020, Spain has a total of 4 unicorns: Glovo, Letgo and Wallapop, all three based in Barcelona, and Cabify, in Madrid.
With a population close to 50 million, Spain is generally known for its football, gastronomy and culture. While it might not be the most powerful financially speaking, it is one of the most culturally diverse countries in the EU. Spanish is the official language of the country, but there are some regions that have a co-official language which grants each area with its own cultural identity.
Fintech centre: Madrid
Just like nearly all European capitals, Madrid is the most populated and biggest city in Spain, and also the political and financial centre. The capital is globally known for being home to one of the world’s biggest telecoms, Telefónica.
It was 10 years ago when the startup ecosystem really started to take off and now it’s one of the biggest hubs in Europe. Might not be at the same level as London or Berlin, but everything is in place for Madrid to continue thriving. The startup ecosystem is backed up by government initiatives, investors and a diverse entrepreneurial vision led by many national and international young talents.
Being a big city, Madrid has space for a little bit of everything when it comes to startups. With it being the financial centre of the country there is no surprise to learn that one of the most important startups at the moment is Bnext, Spain’s mobile-first neo bank, and Fintonic, a free application that enables anyone to organise accounts and save money. But that’s not just it. It’s home of globally known Cabify, the student housing platform Spotahome, and also the innovative Pangea, which is revolutionising travel.
Madrid is the ideal place for those looking for a capital city vibe that mixes with a still quite traditional way of living. The startup scene is stable and growing, which means that it’s the right time to be in Madrid whether it is to begin a project, change headquarters or start-out a new professional chapter. If you’re looking to relocate to Madrid, we invite you to check out the openings on Landing.Jobs.
Growing at speed of light: Barcelona
Named the fifth-biggest European startup hub of 2020 by EU Startups, Barcelona is one of the most important cities of the Mediterranean, a big tourist attraction and home to many established and growing startups.
The Catalan city is known for its year-round good weather that allows for great summers and calm winters, one of the main reasons why the Mediterranean hub is a bit more popular than the country’s capital. Barcelona is quite an international city which is why it has been a long time favourite for many innovators and creators looking to start out a new project while living in a city that offers a great and mature startup ecosystem.
Barcelona has been the home of the Mobile World Congress for a few years now, which shone a light on the city and put it on the radar of many tech-centred companies, startups and entrepreneurs. Its location and welcoming atmosphere and culture attract many people, which is why Barcelona is not only one of the most visited cities in Europe, but also an international talent catcher, making it the home-base of many expats and international headquarters.
While it’s tied with Madrid as the most cost-y city in the country, compared to other European cities, the cost of living in Barcelona is lower. This factor joined with the culture, weather and international talent attract startups to start or relocate to the Catalan capital.
Glovo, LetGo and TravelPerk head the long list of startups based in Barcelona, with rising stars that appear in many lists of startups to look out for in 2021 like human resources software Factorial HR, flower delivery startup Colvin and mid-to-long term housing startup Badi.
Barcelona is the place to be for those who look for a work-life balanced lifestyle. The Catalan hub offers an amazing international atmosphere, a booming startup scene and weather that fits summer lovers and snow aficionados as the closest ski station is less than 2 hours away from the city centre. If Barcelona is on your radar and you’re looking to relocate to the Mediterranean city, we invite you to check out the openings on Landing.Jobs.
Aside from these two main hubs, Valencia has a slow but steadily growing startup scene that is starting to fall in the radar of many international talents, entrepreneurs and companies as the city offers a similar vibe to Barcelona and lower costs of living. Also growing, Andalucía, with Sevilla as the city to stand out and País Basco with its capital, Bilbao, are also on the right track to continue flourishing in the years to come.
There is no denying that the worldwide pandemic has shaken up Spain, but its startup ecosystem remains strong and determinate to continue growing in the upcoming years to stand as one of the most recognised startup hubs in Europe.
Happy searching and good luck! 2021 is gonna be great!
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