For a year now, Spanish startups have realized that securing financing for their projects is increasingly challenging. If 2021 saw record investments in this sector in Spain reaching 4,300 million euros, 2022 tightened the screws and funding dipped. Financing for these entrepreneurs fell by about 20 percent, to 3,500 million euros. The Investment Trends in Spain report by the Startup Ecosystem Observatory, in collaboration with Bankinter, notes that higher interest rates and the lifting of restrictions contributed to this slide in capital. The year 2023 raised hopes for significant rounds of one to ten million euros, but the collapse of Silicon Valley Bank, a U.S. institution specialized in this space, injected a wave of pessimism across the ecosystem.
That seismic shock, which began in California, was felt as far as Valencia. Gonzalo García, a business analyst at the accelerator Beginnings Shuttle, explains: “Our companies are not exposed to direct losses from SVB’s bankruptcy, yet there is a palpable fear that the repercussions will surface eventually. We have just crawled out of two financial crises, and the Fed’s response to the banking turmoil signals that the problem could run deeper than it appears. Even Joe Biden’s remarks, the U.S. president, did little to reassure the industry.” The Spanish association representing venture capital funds, SpainCap, declined to comment on the situation.
It is still early to gauge the full impact. “The startup ecosystem will feel the effects in the medium to long term, not immediately,” say Ship2B Ventures. “Without a central player like SVB, the momentum necessary for a robust financing ecosystem to sustain innovative ventures could wane in the short term. Some funds may hesitate to invest, while others might struggle to secure the needed resources in the near term,” notes Virginia Pérez, director of investments at Tressis. Iván García Berjerano, CEO of the Finanziaconnect initiative, shares a similar view. “SVB will freeze some investments, slowing or even blocking exits and liquations for more mature projects,” he adds.
Ship2B Ventures, a key venture financer, points out that the earthquake did not strike Spain directly but will have indirect consequences on the sector. “It shakes credibility and could negatively affect future funding rounds,” they explain. Ignacio Moreno, co-founder of Capchase, a fintech with substantial U.S. investments, characterizes SVB’s downfall as a heavy blow to the American startup scene. “It’s a thick stick to swallow, even if the bank performed poorly overall. The issue lay more in management of the bank’s assets than in the startups themselves,” he says.
As a result, some Spanish unicorns—valued at around a billion euros, such as Cabify, Fever, or Wallabox—grew with roots in the United States, while SVB’s bankruptcy risk remained limited for them. “We have no affiliation with any of the affected banks,” states Wallabox. Other high-profile startups, like Getir, chose not to comment on the situation.
Venture capital enthusiasm
Contrary to founders’ fears, the U.S. banking crisis is seen as an opportunity by venture capitalists. Ignacio Moreno of Capchase argues that such events shine a light on alternative financing avenues. “When this kind of disruption happens, financing options gain visibility, and we will continue to fund initiatives in the near future.”
Spanish venture funds appeared to be less exposed to SVB-driven turmoil than their American counterparts. “Bank financing plays a minor role in this market segment. From our perspective, SVB’s situation does not alter our plans. We will keep financing projects,” says Íñigo Laucirica of the Samaipata fund.