The founding team at Keybotic faced a challenge they could not ignore. Its co-founder recalls applying for what many viewed as a public seal of legitimacy: Irene Gómez–the certificate. Since its introduction this year, the measure has clearly separated what constitutes a genuine startup from other ventures that look like a button-press away. The entrepreneur, known across several industries, sees in the label not a profit guarantee but a bet on the future. In mere minutes the team filed an invention: a robot dog used for industrial inspections, marking one of Spain’s early official initiatives under the new framework.
Days after the law regulating entrepreneurial activity and the seal itself took effect, the change was formalized. This happened exactly one year ago this Friday. Over the first year of the startup law, 604 technology-based emerging companies have been officially registered in Spain. While that number is modest, the same agency has funded roughly 2,000 ventures in the last five years, and a recent estimate by Informa placed around 23,000 startups in the country last year. Jose Bayon, the chief executive of this institution, sees a clear sign of progress on the balance sheet.
“The law is a European pioneer and the assessment has been positive: they have been visiting us since 2016. France, Denmark, and other innovative nations are watching to see how it unfolds,” the official notes. It stands as the first law to grant legal status to these ventures’ administrative aspects, he argues.
Co-founder and CEO of Bloome, another certified company, Juanfran Sánchez adds, “These days it’s common to hear someone claim they own a startup, but there wasn’t a formal indicator that proved ownership and the startup nature. The seal then becomes a doorway for investors who previously had to verify whether the business was truly innovative and scalable.” His daily work is tied to a brand that aims to modernize the aesthetic medicine market. For him, the seal opens doors that reduce the due diligence burden for investors.
Yet the modest number of applicants—about 1,100 in total, with 604 approved and 301 rejected—suggests there is still a long road ahead. “Credit can be easier to obtain, but many situations still fail to attract proper attention to certification,” echoes Enisa’s CEO.
“If I had to start from scratch without showing everything I’ve already presented to obtain a loan from Enisa, I wouldn’t be certified today,” Sánchez admits. The issue is less about ignorance and more about prioritizing the many tasks entrepreneurs juggle, especially in the early years.
Problems that remain
In summary, this year’s course of action has not altered the core impressions created by the new legal framework becoming real: it is a strong starting point. It gives the ecosystem the visibility it deserves and positions it to compete with neighboring countries under relatively fair conditions, yet it does not fix many of the main challenges faced by professionals in the field.
“Having a startup law is welcome because it legitimizes a rapidly growing sector and reframes the narrative around wealth creation and the future,” says Ignacio Fonts, managing partner at Inveready. “Some disadvantages in the Spanish entrepreneurial ecosystem have been addressed, though not all, and we still sit near the lower half of the table,” agrees Miguel Ángel Rodríguez Caveda, president of BeHappy Investment Fund.
Healing points
Both observers point to areas for improvement. A startup is typically recognized as such for the first five years, and to benefit from tax exemptions, investors must acquire at least 5% of the company. “Depending on valuations, 5% can be a high bar,” Rodríguez Caveda notes, and bureaucracy remains a hurdle.
“Founding a company in Spain is still a headache,” criticizes BeHappy Investments’ president. Weeks pass between initiating the process and receiving operating authorization. “Some obstacles have been removed and progress is real, but there are still barriers that thwart the idea of simplifying the path to qualify as a startup,” says Inveready’s managing partner, who also argues that encouraging large firms and even the government to source from small businesses would benefit the sector. After all, what helps a company is revenue; if it earns money, it pays taxes.
Entrepreneur Irene Gómez also highlights bureaucracy, but speaks to the difficulty of attracting foreign investment. “The main gap is that international investment remains highly complex,” explains Keybotic’s co-founder, listing steps that require all partners to meet in person at a notary and to bring all documents. If documents are correct but the notary does not speak English, a sworn translator may be needed…
She concludes that the final blow is the contradiction of how expensive and convoluted it is to claim tax incentives or Social Security bonuses. In the first year, when the focus was purely on R&D, the team stopped requesting deductions because the procedures did not yield a payoff.