Spain’s startup scene kicked off 2024 on a high note
In the first half of 2024, Spanish startups raised more than €1.566 billion, marking a 49% increase from the same period a year earlier. The surge was driven largely by a wave of mega rounds—investments above €50 million—where foreign participants played a prominent role. This momentum underscored a landscape that attracted global capital and signaled confidence in Spain’s entrepreneurial ecosystem.
A detailed analysis from the Bankinter Innovation Foundation provides nuance to the numbers. Excluding mega rounds, both total investment volume and the number of deals held steady versus 2023. The overall deal count declined, suggesting that the average deal size increased to €7.9 million, up 29% from the prior year. At the same time, the median deal value dropped to €1 million, down 16%, indicating a shift toward larger rounds while a portion of early-stage financing softened.
Commenting on the trend, Juan Venegas, managing director at Arcano Partners and head of the M&A and technology team, describes the improving deal flow as a positive signal. It points to a potential bottoming out after two years of decline and hints at renewed appetite among investors.
Even with a strong start in the first two months of 2024, which saw €444.8 million raised, the six-month tally finished below 2023. The period recorded 128 rounds totaling just over €950 million. Fintech stood out within this mix, accounting for more than €320 million across 13 deals, while insurtech contributed €8 million in a single transaction. Taken together, the fintech segment performed notably better year over year, even as overall investment activity cooled.
Sectors fueling momentum
Fintech and insurtech emerged as the standout sectors in 2024, together accounting for €557 million in the first half and representing about 35% of total startup investment. The key drivers behind investor interest in these sectors include robust market demand, scalable business models, significant growth potential, and the sheer size of the markets they serve.
In terms of startup maturity, there has been a noticeable tilt toward Series C and Growth-stage rounds, signaling a growing focus on more established ventures. Early-stage rounds—Preseed, Seed, and Series A—have cooled somewhat as risk appetite shifts toward later stages with clearer path to scale.
Investor activity shows a broad softening across most groups, with public funding emerging as a notable exception. In the first half of 2024, Inveready stood out as the most active local investor with eight deals, followed by K-Fund and Demium with five each. Among international backers, the EIC Accelerator led with three deals, highlighting continued cross-border interest.
The report notes that rounds funded solely by foreign investors reached 109% of the total invested in 2023, a strong signal that international capital has regained confidence in Spain’s startup scene. In contrast, mixed rounds—co-financed by foreign and local investors—fell to just 23% of the prior year’s level in the first half. Local investment remained roughly in line with 2023, hovering around 42% of last year’s total. These shifts point to a growing emphasis on international partnerships and opportunities in later stages.
Venegas adds that fintech companies, with their scalable models and regulatory environments across Europe, are well positioned to achieve unicorn status as policies evolve to spur innovation and lower growth barriers. He cites Stripe, Square, and Revolut as examples of fintechs reaching unicorn milestones in recent years, illustrating the potential trajectory for ambitious startups in Spain and beyond.