The Spanish startup ecosystem continues to be in good health. Today, our country is home to more than 11,000 firms of this kind, employing around 140,000 people. These figures position us as the fourth European power in terms of the number of startups, only behind the UK, France and Germany.
It is a fact that over the last decade the Spanish startup ecosystem has grown very noticeably. The numbers speak for themselves: this sector has multiplied its value twentyfold, reaching over 83 billion euros during the 2022 financial year.
It is also true that during the first half of 2023 it has been possible to perceive that the situation has changed slightly. It is easily noticeable that investors are a little more cautious and that company valuations are noticeably lower than just a few months ago.
However, it seems that, despite this, international investors have identified Spain as a priority investment destination for this type of company, seeing it as a source of potential success stories, and some of the world's most recognised funds are committing to investing in Spanish startups.
Ultimately, the figures confirm that the year-on-year increase in the volume of investment raised in Spain is higher than the average for the rest of Europe, which demonstrates the maturity of our country's start-ups.
However, bearing in mind this maturity and inner strength that the sector has already attained today, it is time to ask what is happening with the internationalisation of Spanish startups.
The scale-ups
Internationalisation is the key for startups to grow. Most entrepreneurs know this and seek the growth of these companies and their conversion into what are known as scaleups: startups that already have a certain amount of traction and want to make an ambitious leap.
To become a scale-up, it is necessary to have an internationalisation project and for this aspect to be understood by the company and its partners as a strategic decision practically from the start of its activity, feeling global and planning its international expansion carefully and accompanied by specialist legal advisors.
Latin America is one of the main target markets for Spanish entrepreneurs
Based on current data, Latin America is one of the priority destinations for Spanish startups.
According to various studies, this American region could already account for over 40% of the total foreign turnover for Spanish startups, with the most representative sectors being telecommunications and e-commerce.
It must be borne in mind that the Latin American entrepreneurial ecosystem has also gathered great momentum for expansion. Such is the growth that last year it managed to attract more than 15 billion dollars in venture capital investments, according to data from the Latin American Private Equity Investment Association. Today, this area is one of the most sought-after by Spanish startups looking to expand their businesses to other countries.
Spanish startups that choose to internationalise in Latin America do so predominantly in countries such as Mexico and Colombia, as they understand them to be growing, highly stable nations with reliable regulatory frameworks, and where Spanish entrepreneurs have identified major business opportunities that have not been covered by domestic companies.
If you are an entrepreneur and want to analyse your company's internationalisation possibilities, do not hesitate to contact us. We will be delighted to help you with everything necessary.