Can you imagine the GDP of a country quadrupling in a year? Probably not. Even if it's not a totally relatable comparison, just so you know spanish GDP grew from 2020 to 2021 by 5%. In the same period of time the total investment in Spanish startups grew from nearly 1 billion to 4.1 billion euros (310%).
The logical reason for this growth would be an economic amelioration due to the end or softening of Covid-19 restrictions. However, before the pandemic, in 2019 and 2018 the investment in Spanish startups was also around 1 billion euros.
2021 can be labeled as the megarounds year, from the total investment in 2021 30% of the rounds were 250m € + rounds, you probably know some of these companies: Jobandtalent, Glovo, Idealista…
European and North American Venture Capitals have set their eyes on the Spanish startup ecosystem. In 2020 60% of the investment came from foreign investors but in 2021 those investments increased to represent 80%, becoming the key players in the so called megarounds.
Yes, venture capitals are the most active in this market, mainly because that is their job, but corporate investment is becoming a trend. In 2021 more than 19% of the investments came from corporates, acquiring new startups predominately to achieve what is called “growth through acquisition”. From our experience at TheCUBE most of the time it’s a corporate which wants to provide a new service/product or needs an internal tool therefore, it is sometimes easier to acquire a company which already has the service than building it from scratch.
Frequently it is not only the technology or the product that is acquired but the know-how. Corporates value the knowledge on how startups can grow and adapt to consumer tastes at a rapid pace, which then they can implement within their organizations.
En TheCUBE llevamos 4 años haciendo scouting de startups, identificando más de 5.500 tanto para acuerdos comerciales como para inversiones. De hecho Wallbox la segunda empresa española en anunciarse en la Super Bowl y que cotiza desde octubre de 2021 en el NYSE fue ojeada y contactada por TheCUBE en 2018 cuando tenía menos de 5 empleados.
It is important to find experts in the industry that can find the best startups that suit your purpose. In the last year we have been helping various multinationals to find the best startups for potential investments, aiding them throughout the whole process.
Call me crazy but when you want to buy a house you call a real estate expert, then who should you call when looking for the best startups to invest in?
Sources
https://www.eleconomista.es/economia/noticias/11588817/01/22/La-economia-espanola-crecio-un-5-en-2021-el-mayor-aumento-desde-el-2000-aunque-por-debajo-de-la-prevision-del-Gobierno-.html
https://elreferente.es/ecosistema/el-ano-2021-supera-los-4-000-millones-de-euros-invertidos-en-startups-espanolas/
https://cincodias.elpais.com/cincodias/2022/01/26/companias/1643203095_764659.html
https://app.dealroom.co/transactions.rounds/f/growth_stages/not_mature/rounds/not_GRANT_SPAC%20PRIVATE%20PLACEMENT/slug_locations/anyof_spain/tags/not_outside%20tech/years/anyof_2021?isPercentage=true&showPercentage=true&showStats=YEAR&sort=-amount&statsType=investor-location
JORGE PÉREZ
Innovation Project Manager
