The Diplomat
Investment in Spanish startups reached 1,035 million euros in the first half of the year, which is 30% less than the funding raised in the first six months of 2022, according to a report by the Innova Bankinter Foundation.
Despite this reduction in the volume of investment, the number of operations increased, reaching 209 across Spain, representing a year-on-year increase of 12%.
The report highlights that start-ups located in Barcelona raised a total of 527 million euros in 67 operations in the first half of the year, 51% more than the 349 million euros raised by start-ups located in Madrid in 73 operations.
Both cities fall by around 47% in investment volume compared to the same period in 2022, but account for almost 85% of the aforementioned 1,035 million euros in investment and 67% of the 209 transactions carried out.
After Barcelona and Madrid, the Mediterranean axis (Valencia, Alicante, Murcia) is consolidated as the third most active investment area, while Pamplona and Gijón appear in fifth and eighth place thanks to the operations of Veridas (15 million euros) in Pamplona and Biow (5 million euros) and Plexigrid (4.5 million euros) in Gijón, reports Europa Press.
“The first half of 2023 follows the line of the last months of 2022 in the Spanish startup ecosystem, with an increase in activity against the trend of deceleration in the volume of investment,” says the organisation’s ‘Startups Observatory’ report.
However, if large investment rounds (those of more than 50 million euros) are discounted, the amount raised between January and June is 681 million euros, almost the same figure as in the second half of 2022 (689.5 million euros), “which confirms the resilience of the underlying early-stage ecosystem”, the authors of the study have assessed.
“The first half of the year was marked by a significant increase in the number of pre-seed and seed stage deals (78 versus 67 in the second half of 2022) and an even higher number of Series B deals (35 versus 21). Series A deals are also growing (70 vs. 62). The number of Series C transactions is also growing (5 transactions compared to 12 in the second half of 2022),” the analysis adds.
As for divestments, the volume of exits per price paid is decreasing, as is the number of transactions, and according to the report, the first half of 2023 is marked by a decrease in both volume (980 million euros, 22% less than in the same period of 2022) and the number of transactions picked up (31, 40% less than in the first half of 2022).
In this context, in the first six months of 2023 venture capital funds continue to have a “very significant weight” in the Spanish startup ecosystem, although their investment volume decreased by 68% compared to the same period in 2022. Compared to the last half of 2022, the number of deals grew slightly (92 versus 85) and the volume decreased by 41%.
“Of particular note is the growth in corporate venture, from 15 to 30 deals from the previous half year to this one and from 79 million eruos to 290 million euros in invested volume. Also noteworthy is the decrease in the investment volume of family offices, which went from a volume of 149 million euros in the second half of 2022 to 11 million euros in the first half of 2023, although with the same number of operations (6),” the study adds.
As for the sectors of activity of the startups that have received investments in the period analysed, fintechs and insurtechs once again lead the way, both in terms of the number of operations (29) and the volume raised (155 million euros).
It is followed by the mobility and logistics and travel and tourism sectors, which with “far fewer” transactions (11 and 6, respectively) reach similar investment volumes (142 million euros and 122 million euros).
“Finally, the growth of the ‘classifieds/directory’ sector stands out, which with almost 90 million euros of investment (+2,500%) is in fourth position. This phenomenon can be explained by the 81 million euro investment in Wallapop,” explain the authors of the report.
Another of the conclusions of the study is the increase in the weight of local investors, who are increasingly participating in larger rounds. Thus, local investment grew in the first half of the year to 340 million euros, 42.5% more than in the same period last year.
“It is striking that the number of deals has decreased, showing that local investors are increasingly entering larger rounds (119 deals, which is 23.7% less than in the same period last year). The rounds where foreign investors invest fall both in pure foreign investment (in rounds closed only by international investors) and in mixed rounds”, the document concludes.
