SEPTEMBER 2022

MAPPING SPAIN’S
TECH SECTOR
A Network Analysis of the
Entrepreneurship Community

WITH SUPPORT FROM:

RESEARCH BY:

IN COLLABORATION WITH:
 ABOUT ENDEAVOR INSIGHT
Endeavor Insight is the research division of Endeavor that provides data-driven analysis and visualizations
showing what makes entrepreneurial ecosystems thrive. Our research team of economists, data scientists,
and policy analysts specializes in understanding the needs of high-impact entrepreneurs and evaluating
the networks that enable them to scale up and pay it forward to the next generation of entrepreneurs.
The methodology utilized in this study builds on previous Endeavor Insight research supported by the
Omidyar Network, the Kauffman Foundation, and the Heron Foundation.

ENDEAVOR INSIGHT STAFF

Leah D. Barto Martin Pickering
Ana Paula Gil Hamza Shad
Marine Fujisawa Divya Titus
Alejandro Noguez-Ibarra

SPECIAL THANKS
The authors of this report would like to thank their colleagues at Endeavor including Valerie Drasche-
Wartinberg, Luisa Fajardo, Adrián García-Aranyos, Antonio Iglesias, Dustin Poh, Linda Rottenberg, Paloma
Vila, as well as staff at Google for Startups including Sofía Benjumea, Tamara Lucas, and Marcos Guasp
Teschendorff. The following representatives also provided valuable input: César Tello and Miguel Ferrer of
Adigital, and José Zudaire and Ángela Alférez of SPAINCAP.

THIS RESEARCH WAS MADE POSSIBLE BY FUNDING FROM GOOGLE FOR STARTUPS
Google for Startups works to level the playing field for startup founders and communities to succeed. We
do this by bringing the best of Google’s products, connections, and best practices to startups through our
global network of partners, at our Google for Startups Campus spaces, and online at [Link].
Paired with a deep commitment to create diverse startup communities, many of our offerings are designed
specifically to provide underrepresented founders with access to resources and opportunities.

Google for Startups arrived in Spain in 2015 on a mission to support the thriving, diverse, and inclusive
Spanish startup community. With Google and external advisors, inspiring energy, and lots of fellow
founders, Google for Startups Campus Madrid offers a great place to get things done, take a break to
network, collaborate with like-minded people, or bring companies to the next level. Google for Startups
Spain designs hybrid programs, like Growth Academy, to support startup founders with essential growth
skills and internationalization strategies for their companies. Each program includes a combination of
workshops, mentoring sessions, and networking, where Google teams and external industry experts will
support startups with their growth strategies.

THIS PROJECT WAS CREATED IN COLLABORATION WITH SPAINCAP AND ADIGITAL

SPAINCAP (formerly ASCRI) is the association that brings together venture capital and private equity
firms in Spain, as well as their investors, including insurance companies and pension funds. The members
of SPAINCAP make mid- to long-term investments in unlisted companies, from startups to consolidated
companies, providing not only stable financing through equity, but also innovation and management
support. The Association’s mission is to connect the players in the industry in Spain, representing their
interests before the government, media and public opinion, both nationally and internationally, through
alliances and synergies in Europe and Latin America. Its objectives include establishing an appropriate
regulatory framework for the sector, communicating the positive impact of its activities on the industrial
fabric and job creation, and promoting sustainability. Started in 1986, it spreads and ensures the
professional standards among its members: transparency, good governance, and best practices.

The Spanish Association for the Digital Economy (Adigital) is a non-profit organization representing over
500 tech and digital companies in the country, including startups, scale-ups, IBEX corporates, and the big-
tech companies. The association has a wide policy and regulatory agenda bearing in mind the variety of
regulations promoted by public organizations and their impact on startups, scale-ups and big corporations
operating in the tech and the digital economy. We collaborate closely with the public and private sectors
in order to promote and develop the Spanish and the European economies as a way to build a more
competitive, sustainable, and rich society based in entrepreneurship, technology, and innovation.

2
Table of Contents

EXECUTIVE SUMMARY 4

CONTEXT 6
The entrepreneurial tech sector is an engine for economic recovery in
Spain.

OPPORTUNITY 10

Spain has the opportunity to do more to become a more inclusive and

globally competitive home for entrepreneurship.

NETWORK ANALYSIS 16
Social network analysis is a technique to visualize the connections in the
country’s tech ecosystem.

MULTIPLIER EFFECTS 22

These examples demonstrate how a single company can have a significant

impact when founders pay it forward.

FOUNDER CHALLENGES 26
Endeavor Insight interviewed more than 100 founders about the challenges
they faced when growing their businesses.

SUPPORT SYSTEMS 32

Local support organizations, investors, and universities are key actors in

the entrepreneurship community.

REGIONAL ANALYSIS 42
Spain’s entrepreneurial activity is concentrated in Madrid and Catalonia,
but interregional connectivity is important to the country’s ecosystem.

RECOMMENDATIONS 48
Endeavor Insight offers practical strategies that decision makers can
use to help more tech founders reach scale.

GLOSSARY 56
METHODOLOGY 58
ENDNOTES 60

3
 Executive Summary
Endeavor Insight partnered with Endeavor Spain and Google for Startups to study the
entrepreneurship ecosystem for tech companies in Spain. The purpose of the study is to
provide insights on the sector’s current state, evaluate its strengths and weaknesses, and
enable decision makers to better understand and support local tech entrepreneurship.

ABOUT The findings are based on more than 100 interviews with local tech
entrepreneurs between December 2021 and February 2022, and data
THE DATA
on more than 715 companies and their founders. In addition, data was
collected on 450 support organizations, investors, and mentors that
support the local tech community.

WHEN ECONOMIES TURN DOWN, has been shrinking and women often face
ENTREPRENEURS TURN UP. more barriers in growing their companies.
The entrepreneurial tech sector in Spain is Decision makers should help improve
an engine for economic recovery. Following support for female-led companies. In
the 2008/09 Financial Crisis, the number of addition, public support and universities
new tech companies more than doubled. can play an important role in encouraging
Today, Spain’s tech companies are securing entrepreneurship as a career path, especially
substantial funding rounds and achieving among underrepresented groups.
unicorn status. COVID-19 jolted the
economy, but entrepreneurs responded
once again and new companies launched WHEN SUCCESSFUL FOUNDERS PROVIDE
since 2020 have scaled rapidly. SUPPORT TO OTHER FOUNDERS, THE
ECOSYSTEM THRIVES.
Two important lessons emerged by
FACED WITH NEW ECONOMIC further examining the connections among
UNCERTAINTY, SPAIN MUST DO MORE entrepreneurs:
TO BECOME A MORE INCLUSIVE AND
GLOBALLY COMPETITIVE HOME FOR 1. Most tech founders have positive
ENTREPRENEURSHIP. perspectives on the entrepreneurship
Focusing on the businesses that grow rapidly community.
to 50 or more employees will do the most 2. Scaled companies are more likely to
for the economy because of their potential have founders who received support
to generate jobs, but more can be done to from other tech founders compared to
help companies achieve scale faster. The companies that did not scale.
Startup Law is a solid start for early stage
companies, but does not go far enough to Cabify and Glovo demonstrate the multiplier
support the needs of companies at later effect that successful founders can have
stages. on the ecosystem by providing mentorship,
angel investment, and employment to
The percentage of tech companies in people who go on to found their own spinout
Spain with at least one female founder companies.

4
UNDERSTANDING HOW FOUNDERS INTERREGIONAL CONNECTIVITY IS
OVERCOME BARRIERS CAN HELP DECISION IMPORTANT FOR THE DEVELOPMENT OF
MAKERS BETTER SUPPORT MORE THE ECOSYSTEM.
COMPANIES. Madrid and Catalonia are the two hubs with
More than 60 percent of interviewed founders the greatest concentration of entrepreneurial
reported access to technical and managerial tech companies. The exchange of resources
talent as a major impediment to growing their throughout the country has helped the
businesses. Other major challenges included tech sector grow, with even more scaled
government regulations and legislation, as companies coming from Valencia and Madrid
well as access to capital. Decision makers in recent years. Madrid and the Basque
should lower barriers for local companies Country offer more support to other regions
to be sure Spain does not fall further behind than they receive, while Andalusia and
other major European tech hubs. Valencia absorb more from other regions than
they provide.

EXISTING SUPPORT PROGRAMS

OFFER SEVERAL BENEFITS, AND MORE DECISION MAKERS IN SPAIN SHOULD
FORMALIZED MENTORSHIP AMONG WORK TO ALIGN THEIR EFFORTS AROUND
FOUNDERS CAN HELP STRENGTHEN THE THE NEEDS OF FOUNDERS AND TAKE
ECOSYSTEM. ACTION TO LOWER BARRIERS FOR THE
Spain is fortunate to have several public and MOST PROMISING COMPANIES.
private support programs offering a range Endeavor’s principles for self-propelling
of services, where peer-to-peer learning ecosystem development can serve as a guide
and tailored curricula are valued most by for decision makers. This study also outlines
founders. Informal mentorship is common, specific actions for policymakers, public
but more robust global connections and institutions, support organizations, venture
participation from successful local founders capital firms, international tech companies,
will help the ecosystem grow. Founder-led and entrepreneurs.
initiatives are on the rise, with the formation in
2022 of a group of scaled companies, EsTech.
International tech companies can help
founders with products and talent acquisition.

5
I. Context

WHEN ECONOMIES TURN DOWN,

ENTREPRENEURS TURN UP.
Spain is home to a thriving unicorn status following two funding
entrepreneurship ecosystem. rounds totaling €425 million in early 2021.6
Fever is a live-entertainment discovery
Notable successes among entrepreneurial tech platform with presence in more
companies in Spain have grown rapidly in than 100 major cities across the globe. In
recent years. By 2021, seven companies recent years, the company has had strong
had achieved unicorn status (valuations in revenue growth even during the pandemic.
excess of $1 billion), and three more had Their most recent investment round in
reached a unicorn valuation by mid-2022. December of 2021 was led by Goldman
The total number of Spanish unicorns is Sachs and brought the company to a $1
expected to double by the end of 2023.1 billion valuation.7 In early 2022, TravelPerk,
Cumulative investment in Spanish startups is an online platform providing services for
rising, with over $4 billion secured in 2021.2 business travelers, also achieved unicorn
status following a funding round of €100
Among these successes have been
million.8 Wallbox, which manufactures home
specialized tech companies that are
charging systems for electric vehicles,
developing innovations and breaking
was founded in Barcelona in 2015 by Enric
barriers. Some of the largest funding rounds
Asunción and Eduard Castañeda. The
of 2021 were raised by Madrid-based
company had an international focus from
Jobandtalent, a workforce-as-a-service
the start, which has helped it expand rapidly
platform which was founded in 2009
to 900 employees by the end of 2021. In
by Felipe Navío and Juan Urdiales. The
October 2021 it became the first Spanish
company has raised around $1.3 billion and
tech entrepreneurial company to go public
employs more than 1,500 people. 3 Although
via a special-purpose acquisition company
based in Spain, it has an international impact
with its largest market in terms of clients in (SPAC), valuing the company at $1.5 billion.9
the United Kingdom, and it has a The 2008 Financial Crisis demonstrated
growing reach in Europe and the importance of entrepreneurs as
Latin America.4 Since early engines of economic recovery.
2022, Jobandtalent
has also focused on The 2008 Financial Crisis severely
the United States, affected the Spanish economy. Between
using a December 2008 and 2013 the economy shrank by
2021 $500 million more than 8.5 percent, as illustrated in
funding round to the decline in GDP on the following page.
launch and grow the Substantial net emigration followed, with
platform there.5 the population falling by almost 400,000
between 2012 and 2016.10 The government
Idealista, a real imposed cuts to public sector spending,
estate website and with unemployment rising sharply,
founded in Madrid in entrepreneurship became for many a
2000, also achieved

6 Pictured: Felipe Navío and Juan Urdiales (Jobandtalent)

 GROSS DOMESTIC PRODUCT IN SPAIN OVER TIME

1.40

1.30
Trillions of Dollars (in constant 2015 USD)

1.20

1.10

1.00

0
2000 2005 2010 2015 2020
Year Founded
Sources: World Bank national accounts data, and OECD National Accounts data files.

solution sparked by necessity. During that Founded in the middle of the recession in 2011 by
recessionary period, Spain’s tech sector added Sergio Chalbaud and Lupina Iturriaga, Fintonic
more than 200 companies, with those companies provides people with the means to organize their
going on to create more than 13,000 jobs.11 accounts and save money, a use of technology
that quickly proved popular at a time of financial
The graph on page 8 provides a visualization of the uncertainty. By 2022 it employed over 140 people
strong growth in Spanish tech entrepreneurship and had expanded operations to Chile and Mexico.
following the Financial Crisis. Endeavor Insight’s Kantox, which provides currency management
dataset shows that the number of entrepreneurial automation software, was founded in 2011 by
tech companies in the country more than doubled Philippe Gelis, Toni Rami, and John Carbajal. Gelis’s
in the six years following the onset of the crisis. experience working in Deloitte in the aftermath
The fastest growing sub-sectors during this of the Financial Crisis had led him to see an
period were healthtech, fintech, and e-commerce. opportunity. As Gelis says, “It was clear that we
Nearly 75 percent of the tech companies operating were going to see a lot of disruption and digitization
today in Spain have been founded since 2009. in financial services, and FX was one of them. We
The entrepreneurial tech sector more were comfortable with FX, so we decided to resign
than doubled during the recession. and give it a try.”12 Almost all of its 150 employees
are in Spain covering European markets. The
A loss of trust in traditional banking, the company has grown to serve corporate clients in
emergence of new technologies, and a tech- more than 70 countries, and it has made foreign
savvy population laid the grounds for fintech to currency exchanges of more than $15 billion.13
emerge strongly from the crisis. Within the fintech
space, two notable companies that were founded
during the period are Fintonic and Kantox.

7
 Two successful e-commerce companies explains, “We were going through a hard
that grew out of the recession were also economic time in Spain and even though
able to tap into the financial uncertainty of there was not a huge culture of buying
the time, emphasizing thrift and savings. sustainably, there was a need to buy cheap.”
Wallapop is a local marketplace for trading The company has been present almost
second-hand goods. Founded in Barcelona since the beginning in Spain, France, and
in 2013 by a three-person team, Wallapop Germany and — following an acquisition
engineered an innovative “media for equity” —is getting stronger in this last market.
agreement with Atresmedia, which enabled
the company to market itself strongly and Several healthtech companies were founded
rapidly grow a presence in cities throughout in the wake of the Financial Crisis, among
Spain.14 It appears close to gaining unicorn them Top Doctors, a Barcelona-based
status,15 and by 2021 had over 300 online platform for booking e-consultations
employees, with more than 15 million users with private specialists. It was founded in
having traded over 180 million products.16 2013 by Alberto Porciani and Lorena Bassas
Vivó, and has expanded to nine countries in
Percentil was founded in 2012 by Lourdes Europe, the Middle East, and the Americas,
Ferrer, Daniel Bezares, and Luis Ongil as a with 90,000 doctors from around the world
second-hand marketplace for children’s signed up to the platform and providing
clothes, but quickly included men’s and 2.3 million consultations annually.17
women’s clothing too. As the CEO Ferrer

CUMULATIVE GROWTH OF ENTREPRENEURIAL TECH COMPANIES BY FASTEST GROWING

SUBSECTOR DURING THE RECESSION

Healthtech
800 Fintech
E-Commerce / On Demand /
Delivery
HR Tech

600 Edtech

Data Analytics

Gaming

Other Specialty Tech

400
Mobility and Logistics Tech

AdTech / Media / Content

Traveltech

200 Manufacturing and IOT

Enterprise Software / SaaS

Propertytech

IT Services
0

Notes: Based on 678 companies, where data was available. “Other Specialty Tech” includes groups with fewer than 20 companies including agtech, artificial
reality, blockchain, cybersecurity, and legal tech. The subsectors have been ordered by fastest growing during the recession indicates, which is based on the
percentage change in number of companies founded between 2000-2008 and 2009-2013.
Sources: Endeavor Insight founder interviews and analysis, LinkedIn, Crunchbase, company websites.

* South Summit is a global showcase of the world’s leading companies, startups, entrepreneurs, investors and institutions. The three-day event accelerates
8
innovation, and it helps participants build strong relationships and identify opportunities to generate business. It began in 2012 with the belief that the
entrepreneurial spirit would be the driving force to heal the economy following the financial crisis. The event has been held in Madrid since it started, with
additional events in Bilbao, Valencia, Mexico, Colombia, and Brazil.
“When we talk about crisis, it is As the economy recovered, tech
entrepreneurs were leading
synonymous with opportunity. That
innovation and impact.
is the character of an entrepreneur.
The Financial Crisis did not happen Companies founded in 2014 or after continued
for nothing. At that moment, we to lead Spain toward new entrepreneurial
successes, especially in deeptech and
began a structural change that areas of social and environmental impact.
was never considered until then.
Years later it became known as IDOVEN was founded in Madrid in 2018 by
Manuel Marina Breysse (a cardiologist), Iñigo
the fourth digital technological
Juantegui (a serial entrepreneur), and José
revolution. At the time, Spain was María Lillo Castellano (a telecoms engineer).
not known in the world, but today IDOVEN seeks to help cardiologists analyze
it is standing out as important cardiac activity through AI. As a deeptech
in the European ecosystem and company in a highly regulated market, IDOVEN
has benefited from patient capital and support
as a gateway to LATAM. Spain’s
from Google for Startups and the Scaleup
ecosystem is now distinctive Spain Network Program, among others.
because it is concentrated not in
just one city, but two. Madrid stands Freshly Cosmetics, founded in Catalonia in
2015 by Joan Miralles, Miquel Antolín Civil,
out far ahead of Barcelona as a hub and Mireia Trepat Martí, is an e-commerce
with smaller linked hubs such as company selling natural cosmetics with a
Valencia, Bilbao, and Malaga.” focus on environmental protection. In 2021,
the company raised €18.9 million from a Series
- María Benjumea, South Summit* A round. Senniors, a digital health ecosystem
focused on elderly and dependent care, was
selected for Google’s Growth Academy in 2021.
It was founded in 2020 by Claudia Gómez and
Sergio Gómez Estefan in Madrid and has grown
to cover 42 towns and cities across Spain.

COVID-19 jolted the economy, but

entrepreneurs are responding once again.

Companies that have been founded since the

start of the pandemic include Pam Learning
and PayFlow. Pam Learning was founded in
Barcelona by Jordi Ribé, Sergio Escosa and
Xavi Pin, and is one of several successful
edtech companies in Spain. The company
had grown to 43 employees by the end of
2021, its first year of operations. Also based
in Barcelona, PayFlow is a fintech company
that was founded in 2020, and had grown
to employ 43 people by the end of 2021.

9
II. Opportunity

FACED WITH NEW ECONOMIC UNCERTAINTY, SPAIN MUST

ACCELERATE EFFORTS TO BECOME A MORE INCLUSIVE AND
GLOBALLY COMPETITIVE HOME FOR ENTREPRENEURSHIP.
Focusing on the businesses that grow Endeavor Insight’s analysis shows
rapidly to 50 or more employees will do the that only 33 percent of entrepreneurial
most for the economy. tech companies have scaled to over 50
employees, yet these companies account
While most of Spain’s tech sector is made up for the vast majority — 85 percent — of jobs
of companies with fewer than 50 employees, in the sector. More new companies need
businesses that grow larger can provide to scale to ensure the future of the tech
the widest benefit. Previous studies from sector’s economic contribution.
Endeavor Insight have shown how scaled
companies pay higher average wages, are
likely to keep growing once they surpass 50
employees, and can be more resilient during
economic downturns. 18

SCALED COMPANIES ARE A SMALLER PROPORTION OF THE TOTAL NUMBER OF LOCAL COMPANIES, BUT THEY HAVE
GENERATED THE BULK OF JOBS.
Job Creation by Company Size Class in Spain’s Tech Sector

50+ EMPLOYEES 1-49 EMPLOYEES

100%

33%
75%

85%
50%

67%
25%

15%
0%
Share of Companies Share of Job Creation

Note: Based on data from 509 active companies based in Spain, where data was available.
Sources: Endeavor Insight analysis, founder interviews, LinkedIn, Crunchbase, company websites.

10
 Spain’s active tech companies that have company to reach the size of 50 or more
reached scale tend to be older companies employees. Previous research from Endeavor
that have taken many years to reach that size, Insight shows that companies achieving
with an average age of 13 years. Endeavor rapid growth in the first five years have the
Insight’s research shows that it may take potential to keep adding jobs, attract capital,
more than three or five years for a promising and contribute the most to the economy.

SPAIN’S ACTIVE TECH COMPANIES THAT HAVE REACHED SCALE TEND TO BE OLDER
COMPANIES THAT HAVE TAKEN MANY YEARS TO REACH THAT SIZE.
Average Growth Trajectory among Spain’s Tech Companies

300

200
Average Employee Size

100

0
After 1st Year After 3rd Year After 5th Year After 10th Year

Notes: Based on data from 85 interviews.

Sources: Endeavor Insight founder interviews and analysis.

Fewer than 20 percent of companies founded female-founded companies in e-commerce,

between 2017 and 2021 have reached scale. healthtech, and traveltech, and proportionately
Looking at the growth of companies since fewer female-founded companies in the adtech,
the financial crisis, nearly 60 percent of all gaming/mobile, and edtech subsectors.
tech companies in Spain were founded in
2009 or later, but only 30 percent of those Companies with one or more female founders
have reached scale. Now is the time to make up only 14 percent of all companies in this
devote more resources to help more of these study. Over time, the proportion of female-led
newer companies achieve their potential. companies has shrunk. It fell from 17 percent
of companies founded between 2012 and 2016
Persisting gender inequities will hold back to just 13 percent in the most recent five year
potential growth in Spain’s ecosystem. period, as the graph on the next page illustrates.

As Spain’s tech sector has grown, it has not done

so equitably. There are proportionately more

11
 Andrea Barber is the founder of It has been a challenge for me to find a
RatedPower, a cloud-based software supporting system of other women in
company in the renewable energy business. However, I now have several
sector. She founded the company in networks of this type and I think it is very
2017 in Madrid. Barber sums up the important, and more and more support
challenges facing female founders: programs for female entrepreneurship
are emerging every day.”19
“There is still a long way to go to reach the
full integration of women in technology Pictured: Andrea Barber (RatedPower)

entrepreneurship, and the origin lies mainly

in education and culture. Stereotypes
and gender roles, which are still deeply
rooted in our society, combined with the
lack of support from their environment,
are strong discouragements to women
when they just think about the idea
of becoming entrepreneurs.

Another important problem to address is the

fact that we still have greater difficulty in
accessing financing. Redefining the image
of entrepreneurs and new digital business
models are aspects that will make business
opportunities increasingly more egalitarian.

THE PERCENTAGE OF TECH COMPANIES IN SPAIN WITH FEMALE FOUNDERS IS SHRINKING.

AT LEAST ONE FEMALE FOUNDER ALL MALE FOUNDERS

Companies Founded Between 17% 83%

2012 and 2016

Companies Founded Between 13% 87%

2017 and 2022

Percentage of Companies

Note: Based on founders of 512 active companies, where data was available.
Sources: Endeavor Insight analysis, LinkedIn, Crunchbase, PitchBook, company websites.

12
In 2021, companies founded solely by incredibly proud of our alumni community,
women secured just 1.8 percent of the 48 percent of whom are female, and we
total capital invested in venture-backed are glad to see new initiatives and support
startups across Europe, according to networks emerging in the ecosystem.”
the International Data Corporation,
with 9.3 percent going to mixed gender Decision makers should encourage
founding teams.20 In Spain, women are entrepreneurship as a career path
underrepresented in private equity and VC among Spain’s most promising
firms, making up just 30 percent of roles.21 and underrepresented groups.
But Spain does outperform other southern Before the 2008 Financial Crisis, young
European countries in terms of female adults considered public administration
influence — the country has several VC
or established international corporations
funds that have been founded by women,
as secure options to launch their
such as K Fund, Seaya Ventures, and
career. With public sector cutbacks and
TheVentureCity, which positively influence
international uncertainty following the
access to capital for female founders. 22
crisis, more young people were drawn to
Decision makers should do more to entrepreneurship, partly through necessity.
identify and support promising founders
Yet negative perceptions of
from underrepresented groups. There
entrepreneurship as a career path continue
are opportunities to better understand
to discourage students and young people
the specialized needs of female
from considering founding their own
founders, help connect them with
companies or joining a startup. These
relevant networks, and address systemic
views that are reinforced in Spanish
biases within the entrepreneurship
culture are limiting the growth of Spain’s
and venture capital systems.
tech companies. Public support and
Previous research from Endeavor Insight universities can play an important role in
suggests that difficulty women experience encouraging entrepreneurship as a viable
in accessing capital is a symptom of and important career path, especially
other underlying obstacles, primarily among underrepresented groups.
building networks with potential investors, Efforts to encourage future founders in
cofounders, and employees prior to Spain should focus on the students and
launching their company. Successful female young adults already on the pathway
founders often build strong networks during to success. Endeavor Insight identified
their academic years and gain valuable the common traits among Spain’s
professional experience early in their career scaled founders to serve as a guide
that they utilize to scale their businesses. 23 for decision makers in identifying and
Sofía Benjumea, the Head of Google for supporting the next generation.
Startups in Spain since 2015, offers her
perspective on diversity within the Spanish
tech ecosystem, “There is still too much “In the years following the financial crisis there was a
to do to drive diversity and inclusion in the complete transformation of people’s mentality to know
Spanish tech sector. Nevertheless, I feel that Spain can be entrepreneurial. We can all play a part
honored to see women founders thriving and because a startup project is not just one person with one
leading in their industries, such as Andrea concept. It’s about collaboration and cooperation. The
Barber (RatedPower), Claudia Gómez entrepreneur, as a global risk innovator, is decisive and the
(Senniors), and Andrea Cayón (Passporter). new player for innovation. It is key that entrepreneurs are
The percentage is small, but they are setting playing hand-in-hand for the benefit of all.”
a terrific example. At Google for Startups,
this is part of our core values, and we are - María Benjumea, South Summit

13
 In terms of educational experience, scaled terms of professional experience, scaled
companies are more likely to have at least companies are more likely to have at least
one founder with a degree in science, one founder with experience in business or
technology, engineering, or mathematics finance, sales, or experience at C-level or
(STEM) subject, a master’s degree or as a founder in another scaled company.
higher, or to have studied business. In

SCALED COMPANIES ARE MORE LIKELY TO HAVE FOUNDERS WITH CERTAIN TRAITS.
Percentage of Companies With at Least One Founder With a Given Educational or Professional Experience

COMPANIES WITH 50+ EMPLOYEES COMPANIES WITH 1-49 EMPLOYEES

100%

75%

50%

25%

0%
STEM Masters Degree Studied Professional Professional Experience as
Degree or Higher Business Experience in Experience in Sales a Founder or
Business or C-Suite Employee
Finance of a Scaled
Company

EDUCATIONAL EXPERIENCE PROFESSIONAL EXPERIENCE

Note: Based on data from 1,123 founders of tech companies in Spain, where data was available.
Sources: Endeavor Insight analysis, LinkedIn.

The Startup Law is a positive start, but to encourage investment through tax breaks and
policymakers need to go further. incentivize talent acquisition and retention through
stock options and a digital nomad visa for international
In late 2021, the government presented Spain’s first workers. There are also measures to cut red tape and
dedicated startup law to parliament. The law forms the cost and time taken to establish an entrepreneurial
part of a wider strategy (dubbed Spain Entrepreneurial business.25 It establishes an online platform to
Nation) to make Spain a more attractive environment enable entrepreneurs to set up a business in one step.
for entrepreneurial activity. The law, which is expected Political groups are submitting amendments that aim
to pass at the end of 2022, is Spain’s first to establish to improve the law for a variety of stakeholders.
a specific legal framework for startups.24 It seeks

14
Parallel to the new law, the government incorporation can be achieved by electronic
plans a Next Tech Fund, with an investment means via a dedicated business creation
objective of €4 billion — half from the public network. The law also legislates for and
sector, half private — to help raise rounds in encourages electronic invoicing, and makes
excess of €10 million. Together with other the rules around financing instruments
public investment programs, the European such as venture capital, crowdfunding,
Innovation Council has announced and collective investment more flexible.29
concrete investment programs directed
toward European startups and scaleups Decision makers need to do more
with innovation and deep tech models, to create an enabling environment
which will provide another opportunity for entrepreneurs who are scaling
to foster the Spanish ecosystem.26 and creating value in Spain.

Tech companies will continue to drive

“In Spain, we know that we
the economy in Spain, but they will only
have four main challenges for
provide sustainable economic value if
the startup ecosystem. First is they are able to retain the wealth and jobs
investment. Second is talent. Third they create. The current environment
is scaling up. And fourth is having places too many constraints on founders
a full demonstration that Spain is who have scaled their companies,
actually an entrepreneurial state.” prompting many to consider relocating
their headquarters to other countries
- Francisco Polo, and take on funding structures that will
High Commissioner for Spain accrue wealth to foreign investors.
Entrepreneurial Nation.27 The future of the ecosystem depends on
While a step in the right direction, the law more founders being able to successfully
has been criticized for being too narrow as scale their companies in Spain. The
it only has provisions for companies under country’s potential to identity and support
five years old (seven for biotech companies), the most promising founders will diminish
and earning less than €5 million in revenue. if female founders continue to go under-
At least 60 percent of employees must be supported, younger generations of future
based in Spain to qualify for support under entrepreneurs are discouraged, and local
the law. This approach will do much to founder-led companies are overlooked
improve the environment for those that are in favor of international corporations.
starting on the entrepreneurial journey, but it
If these dynamics persist, Spain runs the
does little to encourage companies that are
risk of losing some of the most important
looking to scale or expand internationally.
economic assets it has. Special attention
Serial entrepreneurs would also be excluded
should be paid to understanding the
under the proposals, which limit support
dynamics of how founders scale their
to a founder’s first three companies.
companies, utilize networks, and overcome
In addition, the government introduced barriers. The following sections offer
the “Ley Crea y Crece” (Create and Grow insights on these areas with strategies
Law) in July 2021, which aims to simplify the for Spain to bolster its entrepreneurial
existing laws of incorporation for SMEs. By ecosystem and compete on the global stage.
mid-2022 the law was being debated in the
Senate.28 Under the law, a Limited Liability
Company can be created with shared capital
of only €1 (from €3,000 previously), and

15
III. Network Analysis

Networks are important vehicles to The network map on the following page
transmit resources and information in a shows entrepreneurial companies and
community. Network analysis traces the how they are connected to one another
flow of people, capital, and information through serial entrepreneurship, former
between entrepreneurs, their cofounders, employment, mentorship, and investment.
employees, mentors, investors, and other The size of the bubble is a function of
stakeholders. The methodology looks at the number of first-, second-, third-, etc.
relationships that illustrate the ways in degree connections that the company
which local founders take knowledge and and its entrepreneurs had to others in
resources acquired from founding one firm the network. Founders who have started
and use it to help launch or grow another. multiple companies are represented by their
most prominent company or organization.
To get a snapshot of Spain’s tech
entrepreneurship network, Endeavor Connections between founders
Insight interviewed more than 100 were included if:
local founders and analyzed data on
the connections among them using a 1. The companies are entrepreneurial,
methodology that was developed by operate in the tech industry, and
members of the Global Entrepreneurship are headquartered in Spain. In
Research Network. The methodology select cases, tech companies
looks at three types of relationships with legal headquarters outside of
among founders and companies that Spain were included if they have
illustrate the ways in which local founders at least one Spanish founder and
take knowledge and other resources they provide substantial support
acquired from founding one firm and to the local ecosystem through
use it to help launch or grow another. the connections measured here.
2. Sufficient data could be collected
These are: including the year the company
1. Former employment; was founded, founder identities,
2. Mentorship; and confirmation of at least one
connection — former employment,
3. Investment; and mentorship, or investment.*
4. Serial entrepreneurship.

* The analysis is based on primary data collected through founder interviews. The findings reflect the founder-reported data where interviewees
were responsive and willing to share connections data. In some cases, secondary data on investments and support program participation comes
16 from Crunchbase, PitchBook, and organization portfolio lists. Connections data was verified with founders via email.
NETWORK MAP OF SPAIN’S TECH FOUNDERS

Actors:
Year Founded:
Prior to 1997 Local Entrepreneurial Companies
Between 1997 and 1999
Between 2000 and 2006
Between 2007 and 2010 Note: The size of a circle is a function of the number of first-,
Between 2011 and 2014 second-, third-, etc. degree connections originating from the
Between 2015 and 2022 founders of a company. Founders are represented by their
most prominent company or organization.

Connections:
FORMER EMPLOYMENT
MENTORSHIP
ANGEL INVESTMENT
SERIAL ENTREPRENEURSHIP

Source: Endeavor Insight founder interviews and analysis, LinkedIn, Crunchbase, PitchBook, company websites.

17
 The most influential entrepreneurial Tuenti’s influence has been so profound
company in the tech sector is Tuenti, a as to draw comparisons with the influence
mobile virtual network operator company. It of PayPal in the United States.30 Since its
was founded in 2006 by Adeyemi Ajao, Félix €70 million acquisition by Telefónica in
Ruiz Hernández, Joaquín Ayuso de Paúl, 2010, former Tuenti employees have gone
Kenny Bentley, and Zaryn Dentzel. Ajao on to work in companies throughout the
and Hernández have served as mentors, Spanish tech ecosystem and beyond, also
and Dentzel has personally invested strengthening links with international tech
in Glovo among other companies. The giants including Google, Meta, and Spotify.
company’s influence stems both from the In Spain, Jobandtalent’s cofounders (one
number of other companies its founders of whom, Felipe Navío, had worked as a
have supported and from the subsequent strategy consultant at Tuenti) say that their
influence of those next generation company “was born in Tuenti’s office.”31 Not
companies. Tuenti employed seven people only did Ajao invest in the HRtech company,
who went on to found their own companies, but several former employees went on to
including several who became successful work at the Madrid startup.
mentors and investors in the ecosystem
themselves.

Rank Company Headquarter Region Year Founded

1 Tuenti Madrid 2006

2 OnTruck Madrid 2016

3 Cabify Madrid 2011

4 Consentio Catalonia 2017

5 Akamon Catalonia 2011

6 La Nevera Roja Madrid 2011

7 Glovo Catalonia 2015

8 Goi Madrid 2015

9 MyTwinPlace Catalonia 2012

10 Idealista Madrid 2000

18
Two Important Lessons Emerged by when others were successful, as the graph
Looking at the Connections among illustrates. A majority also agreed that
Entrepreneurs. Spain’s entrepreneurs help one another
and that it is easy to get a meeting with
1. A Majority of Tech Founders in Spain successful entrepreneurs.
Have Positive Perspectives on the
Entrepreneurship Community. When successful founders provide support
to other founders, the ecosystem thrives.
The analysis showed that Spain has a Companies that go on to scale are more
collaborative spirit, which is important for likely to have founders who received
the growth of an entrepreneurial ecosystem. support from other local tech founders.
Nearly all of the founders interviewed for Within Spain, the most influential founders
this study were open to connecting other can be found in the two largest hubs, Madrid
entrepreneurs to people in their network and and Catalonia.
agreed that it was good for their business

TECH FOUNDERS’ PERSPECTIVES ON SPAIN’S ENTREPRENEURSHIP COMMUNITY

Percentage of Respondents Who Agree or Strongly Agree

100%

75%

50%

25%

98% 97% 87% 76%

0%
I am open about connecting It is good for my business Accomplished entrepreneurs It is easy to get a meeting with
entrepreneurs with people when other entrepreneurs in in Spain help others without successful entrepreneurs in
in my network who can be of Spain are successful. attaching conditions or Spain.
help to them. expectations.

Notes: Data is based on the 95 founders who responded to each respective question.
Source: Endeavor Insight analysis, founder interviews.

19
 DIASPORA FOUNDERS HELP Berenguer and Melgiri grew CoverWallet,
SPAIN’S ECOSYSTEM FROM an online platform that offers insurance
ABROAD to SMEs, with investments of $60 million
from global VCs (including Spain’s Kibo
Ventures), to have a customer base in the
The network analysis also recognizes
hundreds of thousands across the United
the contribution of Spanish tech
States, employing around 500 people.
entrepreneurs who have moved abroad,
They sold CoverWallet in 2020 to Aon,35
yet continue to help their home ecosystem
with Berenguer remaining as CEO until
grow. One of the most influential in this
January 2022.36 Following the sale of
regard has been Iñaki Berenguer, who has
CoverWallet, Berenguer teamed up with
grown and sold three New York-based
his alma mater to cofound and become
tech companies.32 Despite remaining in
president of iPronics Programmable
New York, Berenguer has contributed
Photonics, in Valencia, a company that
to the Spanish tech ecosystem through
develops photonic chips for ultra-high
angel investments and mentorship.33
performance computing and low power
After graduating in telecom engineering consumption for use in data centers, AI,
from the Technical University of Valencia and autonomous driving.37
(UPV), Berenguer went on to gain a
Berenguer’s influence on the Spanish
masters and a PhD in engineering from
tech ecosystem extends not only to
the University of Cambridge and an
continued collaboration with UPV,
MBA in entrepreneurship from MIT.
but also to angel investments in
Before founding CoverWallet in 2016
companies including Cabify,
with Rashmi Melgiri, he had already
Jobandtalent, Clicars,
successfully grown and sold two tech
Paack, Bipi, Verse, and
startups based out of New York, Pixable
Clikalia.38
(acquired by SingTel in 2012) and Klink
(acquired by Fuze in 2015).34

Pictured: Iñaki Berenguer (CoverWallet)

2. Scaled Companies Are More Likely to connections differed from companies that
Have Founders Who Received Support did not achieve significant growth. One of
from Other Tech Founders Compared to the largest differences between companies
Companies That Did Not Scale. that reached 50 or more employees and
the rest of the sample was having a founder
Previous research by Endeavor Insight has who had previously worked for a local tech
shown that when entrepreneurs at scale company that had also scaled. Scaled
are more connected to other founders, companies were also more likely to have
entrepreneurship communities are more received mentorship and angel investment
productive.39 Endeavor Insight analyzed from other local companies, as illustrated by
scaled companies in Spain to see how their the chart.

20
SCALED COMPANIES IN SPAIN’S TECH SECTOR ARE MORE LIKELY TO HAVE WELL CONNECTED FOUNDERS.
Percentage of Spain’s Tech Companies with at Least One Founder Who Has a Given Connection Type
COMPANIES WITH 50+ EMPLOYEES COMPANIES WITH 1-49 EMPLOYEES

30%

20%

10%

25% 11% 26% 22%

0%
Worked For or Previously Founded a Local Received Mentorship or Angel Investment
Tech Company That Had Scaled

Note: Based on data from 1,108 founders of tech companies in Spain, where data was available.
Sources: Endeavor Insight founder interviews and analysis, LinkedIn, Crunchbase, Pitchbook.

Employment at a scaling company offers that, once a founder has launched their
founders important opportunities to learn company, mentorship and angel investment,
how to navigate the challenges of building especially from successful entrepreneurs,
a local business. It also allows them to can demonstrably improve the company’s
build important contacts that can make a chances of becoming one of the fastest
meaningful difference in success when growing companies by number of
they start their own company. Endeavor employees. The network map in Spain tells
Insight’s research has consistently shown the same story.

21
 IV. MULTIPLIER EFFECTS

A SINGLE COMPANY CAN such as the founders of Tuenti, at 100 entrepreneurs, there are 5
HAVE A SIGNIFICANT invested.43 Seaya Ventures was percent at the top who don’t need
MULTIPLIER EFFECT another influential investor, anything, the bottom 10 percent
participating in Glovo’s Series A-C will die, no matter how much you
WHEN THE FOUNDERS
funding rounds between 2016 and help them. And then in the middle
PAY IT FORWARD TO 2018, and Pierre credits Seaya’s there are those that get value
THE NEXT GENERATION founder and managing partner from mentors. That’s why it’s so
OF ENTREPRENEURS. Beatriz González as an influential important to boost the ecosystem
mentor. Glovo changed the model and get good mentors in.” During
The examples highlighted here of home deliveries in Spain to one his time leading Glovo, Pierre has
demonstrate how some of Spain’s that essentially invites customers become one of the top mentors
most successful companies to request anything they want in the local tech ecosystem.
are creating an impact on
for delivery. After a year, the pair
entrepreneurship ecosystems, Though now minority shareholders,
pivoted the company to become a
workforce development, and the Pierre and Michaud continue to run
marketplace “middleman” between
environment. Glovo but are turning their attention
businesses and consumers.
to supporting Spain’s startup
Glovo’s growth was rapid. Within ecosystem, taking up the mantle of
GLOVO one year it had raised €7 million paying it forward. In interviews with
Glovo was founded in Barcelona and expanded operations to other Endeavor Insight they spoke with
in 2015 by Oscar Pierre and Sacha cities in Spain as well as to Italy. pride about how many former Glovo
Michaud. According to Pierre, “I met It has since gone on to operate employees had gone on to found
Sacha in my first fundraising through across most of southern and eastern their own entrepreneurial companies
the Conector accelerator, where Europe, as well as seven countries (as illustrated in the map on the
he was one of the mentors. We hit it in Africa. In 2019, Glovo became opposite page), several of which the
off.”40 Michaud, who had nine years Spain’s second company — after pair have invested in themselves.
of experience in the gaming industry, Cabify — to gain unicorn status,
following a €150 million Series E Pierre and Michaud are now
recalls, “I saw what Uber was doing looking to give back in Spain and
in the US, how you can change how round.44 In 2021, Germany’s Delivery
Hero acquired Glovo by raising its worldwide. In Spain, Glovo has
things work with just a simple app, established mentoring programs
on demand. I already had some stake from 44 percent to 83 percent,
valuing the company at $2.6 billion.45 with the University of Granada46
investors for the launch, and they and with the Technical University
told me there’s this kid that just got Their association started as a of Valencia — in coordination with
back from the US who has the same mentoring relationship, something Startup Valencia.47 Each program
idea. I ran into Oscar, listened to that Pierre readily is based on a competition for
him, really liked him, and thought acknowledges, young entrepreneurs with
we should do this together.”41 “Mentorship was an innovative idea. The
Through connections made via important for winners enter a four-
Carlos Blanco, the founder of the me because I month incubator
Conector accelerator, they raised was 22 when and mentorship
seed money and started operations I started, and program with
in Madrid, Barcelona, and Valencia.42 I had some Glovo with
Glovo benefited from early funding angel investors the aim of
from Antai Venture Builder, a vehicle and mentors commercializing
through which many of the earlier that helped a the idea.
generation of tech entrepreneurs, lot. If you look
Pictured: Sacha Michaud and Oscar Pierre (Glovo)

22
In 2021, Glovo launched LeaderSHE, couriers, in 2022 Glovo launched Boston Consulting Group, and the
an internal mentoring and skills a program called G-Learning,49 ESADE business school — where
development program for women, which provides online training and some senior Glovo employees
targeting an increase in the courses for their courier riders, with already mentor — Glovo is also
proportion of women in leadership the aim of gaining them access to participating in a program that aims
positions in the company from 32 more skilled jobs. The G-Learning to boost ICT skills in Kenya, with
percent to 45 percent by 2025.48 program is part of Glovo’s Couriers competition winners earning places
Pledge, which aims to improve on ESADE’s eWorks Accelerator.50
Their support is not just limited to the rights and benefits of delivery
entrepreneurs. To support their riders. Together with Ashoka Africa,

TECH COMPANIES STARTED BY FORMER EMPLOYEES OF GLOVO

Actors:
Year Founded:
Employee Spinouts in Spain
Prior to 2018
Between 2018 and 2020
Between 2021 and 2022

Sources: Endeavor Insight interviews and analysis; LinkedIn; Alcalde, Lucas & Nathan Rennolds. “How Glovo co-founder Oscar Pierre helped build a startup
worth $2.6 billion.” Business Insider. 4 Mar. 2022. [Link]/glovo-founder-oscar-pierre-path-idea-2-billion-dollar-company-2022-3?r=US&IR=T.
Accessed 11 Jul. 2022.

23
 CABIFY

In 2011, together with cofounders Vicente Adhering to his original aim of promoting
Pascual, Adrián Merino, Francisco clean energy, in 2022 de Antonio secured
Montero, and Sam Lown, Juan de Antonio a €40 million loan from the European
launched Cabify in Madrid. De Antonio Investment Bank to further decarbonize
had been working in the electric vehicle Cabify’s fleet.53 The company will use
(EV) industry and was looking for a way to the money to deploy 1,400 EVs in Spain,
reduce the impact of combustion engines as well as to strengthen the country’s EV
on the planet, so he set up Cabify with the charging infrastructure. This is part of the
goal of creating a company that would company’s aim to have a zero-emission fleet
provide a convenient alternative to private in Spain by 2025 and worldwide by 2030.54
vehicle ownership through sharing.51
Cabify’s international impact has
One year after launching in Spain, in extended beyond securing leadership
2012 Cabify entered the Latin American status in the vehicle sharing markets in
market via Mexico, Peru, and Chile, and which it operates, and shows how a large
has since grown to operate in five other entrepreneurial company can influence
Latin American countries. The company the ecosystems in which it operates. More
now directly employs more than 1,000 than 40 former employees have gone to
people, in addition to its thousands of found their own entrepreneurial companies
self-employed driver partners.52 across 13 countries, including Spain.

Cabify has raised around $400 million in

seven rounds, including from local angels,
local VC Seaya Ventures, and Endeavor
Catalyst, with its 2018 $160 million Series
E round, led by Japan’s Rakuten Capital,
valuing the company at $1.4 billion. This
made Cabify Spain’s first unicorn company.

Pictured: Juan de Antonio (Cabify)

24
Cofounder and CTO Sam Lown left De Antonio is using his influence as a tech
Cabify in 2020 to found Invopop, also in entrepreneur to raise the bar throughout
Madrid, a fintech company dedicated to Europe. He is a founding member of the EU
making invoicing easier for developers.55 Unicorns Group, a 35-member pressure
Former CMO Courtney McColgan went group, which aims to boost European
on to found Runa HR, a Mexico-based tech innovation and create more global
payroll management company, with initial champions within the continent.57 In 2021
investment support from, amongst others, the group identified four key directions
Cabify executives.56 The company is now that it wants EU leaders to focus on: green
looking to expand elsewhere in Latin transformation, tech sovereignty, deep tech
America. Ricardo Weder worked at Cabify leadership, and innovation cohesion.58
for over four years, as COO, before going
on to found Jüsto in Mexico, an online
delivery-only supermarket chain, in which
de Antonio has invested as an angel.

TECH COMPANIES STARTED BY FORMER EMPLOYEES OF CABIFY

Actors:
Year Founded:

Prior to 2017 Employee Spinouts in Spain

Between 2017 and 2019
Between 2020 and 2022

Sources: Endeavor Insight founder interviews and analysis, LinkedIn.

25
V. Founder Challenges

Endeavor Insight asked Spanish tech founders about their most common challenges, how serious they considered
these were to operating their businesses, and whether they were able to overcome them. The findings below are
based on the responses of the 102 entrepreneurs who participated in the survey.

Access to Technical Talent hiring directly from abroad. Spain’s good

quality of life and status as an EU country
The availability of quality technical talent is mean that the country can attract workers
an asset to Spain’s growing tech ecosystem. from eastern Europe, and from other
When asked to name the advantages economies. However, keeping staff at their
that Spain offers an entrepreneurial companies is also a concern. According
business, quality of talent was the most to one founder, “We have churn and we’re
frequent response, highlighted by half of preoccupied about it. There’s a lot of
interviewees. According to one founder, demand for tech and we cannot afford
“The quality of the workforce is high. I the salaries that big companies can offer.
worked for a Silicon Valley startup, and Companies like Zara, Amazon, or pharma
I’d say that our quality here is higher companies are fishing in our company.”
on average than in Silicon Valley.”
Many accept that they have little option
However, a combination of factors has led but to keep up with salary inflation — one
demand to outstrip supply, leading to a founder reported that they have tripled
scarcity of local talent and salary inflation. average salaries for engineers over 18
This global shortage was accelerated by months. According to another, “There
the COVID-19 pandemic, but it is having a is much more demand than what the
more pronounced effect on economies such educational system has been able to
as Spain, which had previously enjoyed a produce. The demand will keep growing,
combination of high-skilled and low-cost and then the only thing to do will be to raise
talent. The explosion in remote working salaries and look for other locations to find
since the start of the pandemic has led talent like Argentina, Colombia, and Poland.”
companies in other tech centers to poach
Spanish talent, and an increasing number Understanding that they are unable to
of traditional companies are also expanding compete on salary with large corporates
their tech teams. The result is increased or entrepreneurial companies in the
competition and marked salary inflation. United States and northern Europe,
some founders are focusing on a positive
Nearly two-thirds of respondents company culture. As one founder stated,
experienced major or severe challenges “If you can’t compete on money, then
recruiting and retaining technical talent, sell the project and the culture.” Other
making it the highest ranked obstacle to strategies to build the talent pool include
growing a tech company in Spain according using internships and in-house training.
to founders. The most common strategy
that founders utilized to overcome this
challenge is attracting remote talent or

26
OBSTACLES TO RUNNING AND GROWING TECH COMPANIES IN SPAIN
Percentage of Interviewees Reporting a Major or Severe Obstacle

Availability of Engineers
64%
or Other Technical Talent

Availability of Managers 63%

Government Regulation 57%

Access to Capital 56%

Access to Customers 29%

0% 20% 40% 60%

80%
Note: Data is based on 102 interviewed respondents.
Source: Endeavor Insight founder interviews and analysis.

Access to Managerial Talent The most common way founders overcome

this challenge is to import talent from
The second greatest challenge that abroad or use remote managerial talent.
interviewees reported was the availability They also focus on enhancing the
of experienced and qualified managerial, company’s reputation to attract talent, or
or leadership talent. This was considered a train managers in-house.
major or severe obstacle by 63 percent of
respondents, with marketing executives and Several interviewees noted that more
CTOs being the most challenging C-level managerial talent is coming onto the market
positions to recruit. Many interviewees as the sector matures — as exits occur and
cited the young nature of the ecosystem as more corporate employees are attracted
as a reason that there remains a dearth of to entrepreneurial companies. As one
experienced managerial talent in Spain. founder said, “Five years ago it was more
Sales and marketing chiefs were also of a challenge, now less so. Good quality
difficult senior roles to fill, particularly for people are quitting bigger companies and
Software-as-a-Service (SaaS) and B2B moving towards startups, as employees or
companies (those whose customers are to start companies themselves.” Another
other businesses). Tech startups can require noted that some qualified managers who
a level of technical expertise in various left Spain after the 2008 Financial Crisis are
roles across all departments, and many now returning to the Spanish market, further
respondents described finding a manager increasing the supply of managers.
with tech-specific talent as a challenge.

27
 Government Regulation and Legal number or a license, is crazy. It’s a maze, it’s
Frameworks unclear, and it increases the burden on your
time and also increases your costs.”
Government regulations and legislation
presented a major or severe challenge for Several founders compared Spain
57 percent of interviewed founders, with unfavorably to jurisdictions such as the
most saying that it was an ongoing problem. United Kingdom, which offers generous tax
Founders described issues relating to deductions for investments — helping to
bureaucracy, taxation (either the high underpin strong angel and venture capital
burden or complexity), and stock options. funding — as well as clear legislation on
When asked for their perspective on stock options. At present, stock options
whether government policies are currently in Spain are taxed as income, which is a
playing an enabling role for entrepreneurs, disincentive that many companies work
only 17 percent of founders agreed. around by offering so-called “phantom
shares,” the benefits of which are difficult
Some of Spain’s regulatory challenges to explain to employees.* While legislating
stem from the fact that startup culture for stock options appears to be a step in the
is still relatively young, and legislation is right direction, several entrepreneurs are
taking time to catch up. Founders reported concerned that the new law does not go
that startups are being legislated in the far enough. According to one founder of
same way as traditional companies, which a scaled company, “They are trying to fix
is hindering their growth. The proposed stock options but in essence what they are
Startup Law is meant to support the startup doing is focused only on very early and seed
ecosystem, and several interviewees stage startups, and they are only touching
appeared confident that the new law the surface.”
would help entrepreneurial companies.
Nevertheless, many are still cautious. Of the few solutions that entrepreneurs
stated that they had implemented to
According to one founder, “Interactions with overcome the issue of burdensome
the government when it comes to taxes, or regulation, some stated that relocating their
anything to do with a company’s constitution, legal headquarters outside of Spain helped,
are confusing. The red tape that exists and others had expanded their legal or
around going to government offices, to get a accounting team.

* Phantom shares are a benefit plan that gives selected employees some of the benefits of stock ownership without actually giving
them any company stock. The value of the phantom shares tracks the valuation of the company, with a proportional bonus paid out.
28
Access to Capital As a result, securing foreign capital is
common for growth-stage and scaling
Access to capital was reported as a major companies, which can, in turn, give
or severe challenge by more than half of companies access to other markets
interviewed founders, most of whom said internationally. The founder of one scaled
that it was a challenge that they had already company said, “Once you get past Series A,
overcome. As with many aspects of the you automatically have to go abroad.” And
Spanish entrepreneurial ecosystem, there is while the local VC market is moving in the
evidence that capital markets are evolving right direction, its level of maturity in Spain
positively. According to one founder, “When still brings frustrations for entrepreneurs
we created the company in 2011 the startup who have ambitions for building the
world was not as developed as it is today. country’s local ecosystem.
Now you have way more funds than there
were, when tickets were smaller and the risk The same founder continued, “Many
capital was less.” companies that gain traction and have
potential to grow get acquired. While they
While raising finance has become easier, get a lot of congratulations, the truth is
interviewees noted some gaps in the market, it should be the other way around. They
particularly in early stage or post-series A should be acquiring other companies,
financing. And while there is consensus that and that’s not happening. It’s moving in
the amount that can be raised has increased the right direction, but I don’t see very big
in recent years, many respondents said that VCs in the space yet.” If more local VCs
ticket sizes are still below their potential had the capability to fulfill capital needs
levels in Spain. As one founder summarized, for companies at later stages, it would
“Early stage investment in Spain is not very not only help make for better deals — as
mature, so it is difficult to get a project from local investors are more knowledgeable
zero to one. There are no ‘super business on the local market and can better support
angels’ (investors that could write a single founders as they grow their companies —
€100,000-plus check). You have to get tens but it would also help retain wealth locally
of people to write you a check totaling that when exits happen.
size, which is challenging. For Seed round
to Series A, we’re more or less okay, but
there is a huge gap after the Series A round.
Everything after that point is non-existent in
Spain.”

29
 Access to Customers Although Spain is a tech-savvy country
with a population willing to embrace new
Only 29 percent of founders reported technologies, the traditional mindset in
customer acquisition as a major or severe Spanish culture makes it hard for local
challenge to growing their business. companies to compete and retain the value
Companies that sell directly to consumers they create. One founder reported, “We
encounter fewer problems than those with do not support startups as much as we
a B2B model. As one founder of a fintech should. We like big brands, and in Spain new
company stated, “It’s a mature market, it’s customers are always a huge challenge.”
digitalized, it’s not a challenge at all. Of
course it’s not as big a market as some, but When asked how they have overcome the
it’s not hard at all.” One entrepreneur, who challenge, some said that it became easier
has experience with both B2C and B2B and once they had landed their first major client,
models with different companies, said, “It suggesting that trust in new tech is an
was very easy with my last company. My important hurdle to overcome. According to
new company is a SaaS, and that’s more one, “What was important for us was having
difficult.” our first contract with a utility. That helped
us reach people. Utilities don’t tend to take
Selling to companies can bring an extra risks, so that was a good signal to investors
layer of complication, as explained by and then customers.”
one entrepreneur, “The key objective is
to meet the right person in the customer’s Many Spanish companies have global
business. We’re proposing to our clients to ambitions, and several respondents
use technology to make them more digital, noted a difference between Spanish and
and that involves a lot of departments international customers. Some local tech
inside the client. That’s why having the right companies focus mostly on the international
support inside the company is key for us.” market, with one entrepreneur stating,
This proposition was made more difficult for “The Spanish market doesn’t trust a
that founder by the COVID-19 pandemic, lot in technology; it trusts more in cost
the uncertainty of which led their potential effectiveness. That’s why I have more
customers to reconsider their budget international than Spanish clients.”
allocations for new technology.

30
31
VI. Support Systems

There are several actors in any entrepreneurial ecosystem that make it possible for founders to succeed. The
network map on the next page shows all of the actors in the tech sector that are providing resources to local tech
companies. This adds support organizations and investment firms to the previous visualization of founder-to-
founder connections, to identify the fuller picture of previous employment, mentorship and other support, and
investment connections. Similarly, the size of the bubble is a function of the number of first-, second-, third-, etc.
degree connections that the entity has to others in the network. Organizations that offer multiple programs are
represented only once on the map.

SUPPORT ORGANIZATIONS
Endeavor Insight collected data on more than Another important aspect was the business
450 organizations that have supported local tech education that they received, especially coming
companies, of which over 50 are headquartered from experienced mentors that they connected
in Spain. These include investment firms, banks, with. As one founder stated, “They taught me
public sector initiatives, and those offering everything regarding the business model,
other forms of entrepreneurial support, such as finance, and the company.” A smaller proportion
accelerators and incubators. of respondents highlighted the access to capital
that they gained from a program or the stamp
Most of the programs in Spain that were included of approval that participating in such a program
in the study focused on early stage companies — gave their company, which proved useful when
those that have proved a business concept and are embarking on funding rounds.
now building demand and financial sustainability.
Only 16 percent of Spanish organizations that Endeavor Insight asked founders which aspects
served the tech companies in this study provide of the support programs were unhelpful, and three
support for companies at the pilot or ideation stage, main criticisms were noted. Many stated that the
with those that do being predominantly public program curriculum was too broad, and not tailored
sector bodies and universities. Only 5 percent of the to their business type or model. Several founders
local organizations provide support for expansion said that some programs were a waste of time or
stage companies. This would include international that the quality was not as high as they had been
expansion and significant product portfolio led to believe. As one founder summed up, “Some
diversification. mentors were not that useful and it’s too time
consuming.”
During interviews, founders who had participated in
an entrepreneurship support program were positive “We want to contribute to changing the
about the value they received. Half of interviewees ecosystem in Spain so that entrepreneurs
said that the networks and connections that they have the ambition and hope of turning
made during the programs were of great benefit.
their companies into global leaders. Our
Those networks included peer entrepreneurs, as
entire team is focused on helping them
well as more experienced founders and mentors.
According to one, “It was useful to see other at each stage with what they need so
entrepreneurs with their experience, to know their that they have the best resources at their
capabilities and know that we’re not alone. The fingertips and can compete with the rest
knowledge we learned and the networking we got of the international companies.”
were great.”
- Beatriz González, Seaya Ventures
and Endeavor Spain Board Member

32
NETWORK MAP OF SPAIN’S TECH SUPPORT SYSTEM

Actors:

Year Founded: Entrepreneurial Companies

Prior to 1935
Between 1935 and 1980 Other Organizations
Between 1981 and 1996
Between 1997 and 2006 (e.g. accelerators, investment firms)
Between 2007 and 2013
Between 2014 and 2022
Note: The size of a circle is a function of the number of first-,
Connections: second-, third-, etc. degree connections originating from
the founders of a company. Founders are represented by
EXPERIENCE: Former employment their most prominent company or organization.

SUPPORT: Mentorship or program participation

INVESTMENT: Angel or venture capital

SERIAL ENTREPRENEURSHIP: Founded more than one company

Source: Endeavor Insight founder interviews and analysis, LinkedIn, Pitchbook, Crunchbase, company websites.

33
 LOCAL SUPPORT ORGANIZATIONS OFFER A RANGE OF PROGRAMS AND SERVICES.
Services Offered by Support Organizations in Spain’s Tech Sector

Access to Capital

Training

Mentorship

Networking

Access to Talent

Access to Customers

Competition or
Other Event

0% 10% 20% 30% 40% 50%

Note: Based on 53 support organizations based in Spain serving companies interviewed for this study.
Sources: Endeavor Insight founder interviews and analysis, organization websites, LinkedIn, Crunchbase.

The most common kind of support that is that organizations offer are business training,
offered (as described in publicly available mentorship, and networking, as the graph
information on the program websites) is illustrates. Few organizations were explicit
access to capital, which is provided by more about any activities that support founders
than 40 percent of local organizations. This with access to talent — the highest ranking
is unsurprising as many of the local support challenge among tech founders — which
organizations originate from VC firms and exposes a major gap in the ecosystem.
funds. The next most common areas of support

34
 NOTABLE INSTITUTIONAL INVESTORS IN SPAIN
Public and private capital providers.65

4Founders Capital BeAble Capital Encomenda Smart Capital Mundi Ventures

Abac Nest Bewater Asset Management ENISA Catalonia

Adara Ventures Bonsai Partners Gestión de Capital Riesgo del País Vasco Sabadell Venture Capital

Aldea Ventures Bullnet Capital Institut Catalá de Finances (ICF) Samaipata

Angels Capital Caixa Capital Risc Inveready Seed Capital de Bizkaia

All Iron Ventures CDTI JME Venture Capital Seaya Ventures

Axis /ICO Clave Mayor K Fund Swanlaab Venture Factory

Axon Partners Group Easo Ventures Kibo Ventures TheVentureCity

Bankinter

Note: This is not an exhaustive list and does not include corporate entities.

INVESTORS PUBLIC SUPPORT

Venture capital has grown
The two most common sources of public
significantly in Spain.
support for Spanish tech startups are Enisa
In 2021, Spain attracted a record €1.9 billion in and CDTI. Of the Spanish tech companies
venture capital with over 690 deals.59 In the first surveyed by Endeavor Insight, 54 had received
half of 2022, the amount of venture capital and support from Enisa, and 24 from CDTI. Several
private equity raised was €5.165 billion, which of these had received funding from both.
is a 170 percent year-over-year increase.60
The Empresa Nacional de Innovación SA
While international venture capital continues (Enisa, National Company for Innovation), a
to play a significant role, local firms are state-owned company within the Ministry of
increasingly contributing to the Spanish Industry, Commerce and Tourism, provides
ecosystem. Venture capital in Spain was driven entrepreneurial SMEs with financial support,
by public administrations when it started in usually in the form of loans.63 The Centro para
the mid-1970s, but private operators have el Desarrollo Tecnológico Industrial (CDTI,
since grown, and by 2005 only 18 percent of Center for the Development of Industrial
registered entities were public.61 There are Technology) is a public company administered
now more than 400 venture capital funds in by the Ministry of Science and Innovation. Its
Spain, with more than 170 of those located in focus is funding and supporting technological
Madrid and 120 in Barcelona.62 The geographic development and innovation, either from
diversity of Spain’s entrepreneurial ecosystem its own funds or in cooperation with EU
is reflected in the network of venture capital research and development initiatives.64
firms. Madrid and Catalonia dominate, but firms
are also operating elsewhere in the country.

35
 MENTORS
Mentorship from experienced founders that there’s not really senior advisory talent.
is crucial to the future of the sector. I haven’t found one person that really has
the level and at the same time is able to
From interviews, it was clear that founders dedicate time in terms of mentoring.”
consider the culture among entrepreneurs
to be collaborative and open. Although The lack of local mentors with first-
formal mentorship is still not as strong hand experience scaling a company
as in some European or North American means that many entrepreneurs have to
ecosystems, informal networks play look elsewhere for support. Investors
a vital role in facilitating knowledge and support organizations such as
transfer and forging connections. Endeavor and Google for Startups were
mentioned by more than 40 percent of
Those that have struggled to access respondents as providing important
networks or find quality mentors often cited mentorship and helping to develop
the immaturity of the ecosystem as a factor. networks and international connections.
One healthtech entrepreneur explains that,
“The biggest problem of being in Spain is

“Having access to the right mentors can really

10x your speed of learning. In my case those
mentors even opened up their networks to help me,
transferring in a way their well-earned reputation
and credibility to me. That combination was a clear
game changer for me and I’ll be forever grateful.”

-José del Barrio, Founder of Samaipata

“Mentorship was important for me when

I started. It’s so important to boost the
ecosystem and get good mentors in.”

-Oscar Pierre, Cofounder of Glovo

36
UNIVERSITIES
Universities play an important role in the have the opportunity to talk with them
development of the local tech sector. and gain knowledge. We have also built
Local facilities can often support the partnerships for trainees with them.”
development of innovative products and
services that eventually go to market. There are opportunities for universities
to better support the pipeline by ensuring
Around one-quarter of interviewed that curricula are aligned with the most
founders that noted ongoing support pressing talent needs of scaling companies
with universities collaborate on research, in their area. Some suggest that universities
and a similar number give classes at should ensure proficiency in English,
universities. But many feel that links as that is the primary language among
could be strengthened to provide more many entrepreneurial tech companies in
mutual benefit. As one founder notes, Spain. In addition, academic programs
“We have agreements with quite a few can help encourage entrepreneurship
universities, it’s something I have tried as a career path, especially among
to forge. Sometimes successfully, underrepresented groups such as
sometimes not so much. Ideally this has female students. As founders often
to be improved in Spain: structuring the meet their cofounders while attending
right incentives for universities to engage university, this is an important training
and link with companies such as ours.” ground for the future of the ecosystem.

In Spain, graduates of local technical Decision makers can start by coordinating

programs provide essential talent to with the universities that are already
growing businesses. Several companies generating the country’s successful
have ongoing collaborations with entrepreneurs. The table below lists the
universities, around half of which most common universities attended by
involve internship or training programs, tech entrepreneurs who went on to scale
sometimes with reciprocal tuition. The their companies. Half of the top universities
founder of one such company sums up are located in the Catalonia region.
their collaboration, “We studied there and

MOST COMMON UNIVERSITIES ATTENDED BY FOUNDERS OF SCALED TECH COMPANIES IN SPAIN

Rank University Region

1 Universitat Politècnica de Catalunya Catalonia

2 IESE Business School Catalonia

3 ESADE Catalonia

4 Universidad Politècnica de Valencia Valencia

5 Universidad Politécnica de Madrid Madrid

6 Universitat Autònoma de Barcelona Catalonia

7 Comillas Pontifical University Madrid

8 Universidad Autónoma de Madrid Madrid

9 Pompeu Fabra University Catalonia

10 Universidad Complutense de Madrid Madrid

37
 INTERNATIONAL CORPORATIONS
Spain is already one of the world’s most than 2,000 people locally through a new
open markets for foreign investment, data center close to Madrid, Amazon Web
ranking ninth on the OECD’s Foreign Direct Services is opening three new data centers
Investment Regulatory Restrictiveness to support its cloud services, and Google
Index.66 In addition to the advantages has similar ambitions, with three new data
of being a member of the EU, Spain centers slated for the Spanish capital.68
has a highly qualified workforce, low Other international giants, such as IBM,
costs (relative to northern Europe), Oracle, and Microsoft, have also announced
good transport infrastructure, and is in plans to expand operations in the country.69
a time zone that allows working hours
contact with most of the world. International Tech Companies Play an
Important Role in Spain’s Tech ecosystem.
Recognizing the country’s advantages,
international corporations have Although many founders are experiencing
increased operations in Spain. a challenge with access to talent due to
competition with major tech firms, many
Google opened its first Spanish innovation founders reported several benefits that
campus in Madrid in 2015.67 Google was corporations provide. Nearly two-thirds
followed in 2016 by Amazon, which opened of interviewed founders agreed that
a tech hub, and other big tech companies international tech corporations provide
are also establishing bases in the country. important products and services that
Meta has committed to employing more

INTERNATIONAL TECH CORPORATIONS ARE INCREASING OPERATIONS IN SPAIN.

2015 2016 Recent Announcements Future Plans

Opening of Google Amazon’s Tech Hub Google Cloud Region Google Center of Excellence
for Startups Campus opened in Madrid. and data centers by for Cybersecurity in Malaga.
in Madrid. Meta and AWS. Operations by IBM, Oracle,
and Microsoft.

Source: [Link]/20220321/meta-ibm-google-amazon-how-thousands-of-tech-jobs-are-being-created-in-spain.

38
help their companies scale faster, and “At their best, startups solve some of
more than half of respondents noted that the world’s most important problems.
such firms help create jobs in Spain. When they succeed, our communities
and economies succeed. That’s why in
In Málaga, the relationship between Google for Startups we run programs,
entrepreneurial success and an international share resources, build campuses,
corporation has helped develop the local and support a global network of
ecosystem. VirusTotal was founded in 2004 leading tech hubs, accelerators, and
and provides antivirus scanning services. organizations in the world’s fastest-
The company was acquired by Google in growing markets. We connect startups
2012, which made it the first major foreign with what they need to help them grow.”
Pictured: Sofía Benjumea (Google)

acquisition of a Málaga company.70 The

founder Bernardo Quintero is attributed in -Sofía Benjumea, Head of
leading Google’s decision to open its center Google for Startups, EMEA
of excellence in cybersecurity in Málaga.71

FOUNDERS REPORTED BENEFITS AND DRAWBACKS ABOUT THE ROLE OF INTERNATIONAL TECH COMPANIES
Percentage of Respondents Who Agree or Strongly Agree

80%

60%

40%

20%

64% 53% 40% 27%

0%
They provide B2B products They help create jobs. They help grow the availability They help provide much
and services that help local of tech talent. needed capital.
tech companies scale faster.

Notes: Data is based on the 85 founders who responded to each respective question.
Source: Endeavor Insight founder interviews and analysis.

39
 FOUNDER-LED INITIATIVES
A Group of Scaled Companies Unite as the profile of scaled companies on
EsTech to Advocate for Entrepreneurs the national and global levels.73

In March 2022 a new consortium, EsTech is supported by Adigital, a

España Tech (EsTech), was set up by digital business association, Endeavor,
the founders of nine scaled companies: and the Spanish association of VC
Cabify, Factorial, Filmin, Glovo, Wallbox, firms, SPAINCAP (formerly ASCRI).74
Holaluz, Neuroelectrics, Jobandtalent, The group is likely to bring on more
and Red Points.72 EsTech hopes to lobby high growth startups as it matures.
and coordinate with political leaders
at the national and EU levels to bring One of the aims of the group is to inform
policy changes that can further boost the public perceptions of the contribution of
entrepreneurial ecosystem. The group’s scaled companies to employment, the
advocacy broadly breaks down into three wider economy, and the environment.75 This
areas: promoting talent development in would help to address a commonly held
Spain and attracting international talent perception that Spanish culture is averse
to the country; influencing regulation to celebrating the success of startups.
on a national and EU level; and raising

40
 As one founder said when interviewed by in investment — generated 324,000 jobs
Endeavor Insight, “Culturally Spain is still in 2020, up by 28 percent over 2019, and
biased towards seeing people that want expect that number to have doubled in
to create a company and be successful 2021.76 The fact that this strong growth
as something unethical or wrong. It’s a occurred during the worst period of the
mindset that sees being successful or rich pandemic speaks to the resilience of such
as a bad thing. I don’t think in Spain there’s companies. Previous Endeavor Insight
a fear of failure, there’s a fear of success.” research has shown that scaled companies
are well placed to support economies
The group hopes to bring wider attention and create employment during economic
to facts such as those reported in 2021 crises.77 Scaleup Spain also estimates that
by the Scaleup Spain Network. Its report investment in Spain’s startup ecosystem
stated that “scaleups” — defined as rose threefold in 2021, to €4.3 billion.78
startups that have achieved at least €1
million in annual revenue and/or €1 million

41
VII. Regional Analysis

Catalonia Network Map

Spinouts: More than 50 companies in Catalonia were Influential Tech Companies: The most influential
founded by people who previously worked at other companies in the region in terms of founders providing
local entrepreneurial tech companies in the region. investment or mentorship, or generating spinout
companies, have been eDreams, Glovo, and Tradeinn.
Serial Entrepreneurs: More than 15
entrepreneurs in Catalonia have founded Notable Investors: 4Founders Capital, Abac Nest,
more than one local tech company. Aldea Ventures, Caixa Capital Risc, Encomenda
Smart Capital, Inveready, Nauta Capital, and
Investment: Local institutional investment is Sabadell Venture Capital, among others.
more common in Catalonia than in Madrid.

Year Founded:
Prior to 1998
Between 1998 and 2000
Between 2001 and 2008
Between 2009 and 2013
Between 2014 and 2021

Actors:

Local
Entrepreneurial Companies

Other Organizations
(e.g. accelerators, investment
firms)

Connections:
EXPERIENCE: Former employment

SUPPORT: Mentorship or program participation

INVESTMENT: Angel or venture capital

SERIAL ENTREPRENEURSHIP: Founded more than one company

42
Much of Spain’s entrepreneurial activity is concentrated within geographic regions. One founder lamented that
“You have different initiatives in different regions, but Spain is six countries, not one, and they don’t link. You have
Madrid, Barcelona, Málaga, Bilbao, and they’re all trying to create their own ecosystem without joining forces to
make one Spanish ecosystem.” Catalonia and Madrid are the two regional hubs with the greatest concentration of
entrepreneurial tech companies.

Madrid Network Map

Spinouts: More than 25 companies in Madrid were Influential Tech Companies: The region’s most
founded by people who previously worked at other influential companies, in terms of connections
local entrepreneurial tech companies in the region. identified by Endeavor Insight, are Cabify,
Tuenti, OnTruck, and La Nevera Roja.
Serial Entrepreneurs: The Spanish capital has the
greatest concentration of serial entrepreneurs, Other Notable Investors: Adara Ventures, Axon
with almost 20 local entrepreneurs having Partners Group, Bankinter, BeAble Capital ,
founded more than one tech company. Bonsai Partners, Bullnet Capital, JME Venture
Capital, K Fund, Kibo Ventures, Mundi Ventures,
Investment: Local angel investment Samaipata, Seaya Ventures, Swanlaab Venture
among regional entrepreneurs is at similar Factory, and The Venture City, among others.
levels in Madrid and Catalonia.

Year Founded:
Prior to 1976
Between 1976 and 1999
Between 2000 and 2008
Between 2009 and 2013
Between 2014 and 2022

Note: The size of a circle is a function of the number of first-, second-, third-, etc. degree connections originating from the founders of a company. Founders are represented
by their most prominent company or organization.
Source: Endeavor Insight founder interviews and analysis, LinkedIn, Pitchbook, Crunchbase, company websites.
43
 As the ecosystem has evolved jobs. More than one quarter of these
over the past 10 years, Madrid younger companies have scaled to over
and Valencia have increased their 50 employees. The regions with the most
prominence in generating scaleups. per capita growth in the number of tech
companies during this time were Madrid,
In the past decade, Spain has added Catalonia, Valencia, the Basque Country,
hundreds of new entrepreneurial tech and Navarra. Valencia and Madrid have
companies across several regions. become more prominent in generating
Between 2011 and 2021, more than 281 tech companies that go on to scale.
entrepreneurial tech companies were Andalusia is the other main hub, with several
founded in Spain, creating over 33,500 companies based in Málaga and Seville.

CHANGE IN THE REGIONAL DISTRIBUTION OF SCALED COMPANIES IN SPAIN

100% Region of Murcia

3% 12% Aragon

Navarra

75% Galicia

27%
Castile and León
35%
The Balearic Islands

Valencia
50%
Basque Country

Andalusia

Madrid

25%
Catalonia

0%
Founded Before 2011 Founded 2011 and Later

Note: Scaled companies are those with 50 or more employees. Based on 241 tech companies where data was available.
Sources: Endeavor Insight analysis, LinkedIn, Crunchbase, PitchBook, company websites.

44
INTERREGIONAL CONNECTIONS SUPPORTING SPAIN’S TECH ENTREPRENEURS
The types of connections flowing from each region include mentorship, angel investment, institutional investment, support organization
participation, and former employment.

Note: Data represents outgoing connections originating from founders, support organizations, and investors based in a given region
that benefited a company located in a different region. Interregional lines with at least two outgoing connections are depicted.
Sources: Endeavor Insight founder interviews and analysis, Crunchbase.

Interregional connectivity is important to each hub. Madrid is the financial and commercial
the development of the ecosystem. center of Spain, so it has the best connections for
founders of finance, fintech, or B2B companies.
In many European countries, entrepreneurial Catalonia has proportionately more specialty tech
activity is concentrated in a single city, often companies serving industries such as HRtech,
the capital. In Spain, there is substantial healthtech, and propertytech. Valencia has
activity in more than one metropolitan area, growing numbers of gaming, mobile app, and
with important growth happening in regions e-commerce companies, and Basque Country
throughout the country. It is important for Spain has several manufacturing and IoT companies.
to leverage this widespread activity to foster
better coordination between the regions. Endeavor Insight tracked the interregional
connections, including mentorship, employee
Personal and informal networks are common spinouts, and investment that are exchanged
in Spain, but often do not extend beyond a between Spain’s geographic areas. As the
company’s own province. To better facilitate graph illustrates, there are more than 100
interregional connections, it is helpful to identify connections from Madrid to other regions, and
the different strengths and characteristics of more than 80 from Catalonia to other regions.

45
 When looking at the net impact of specific is local. Endeavor is doing a good job
regions, Navarra, the Basque Country, connecting, it’s through Endeavor that I
Madrid, and Catalonia provide more see companies from other places. VCs like
connections than they receive — largely via Seaya also do this.” However, more should
VCs such as Seaya Ventures (Madrid) and be done to encourage founder-to-founder
All Iron Ventures (Basque Country), while exchanges such as angel investment and
Andalusia and Valencia absorb more support formalized mentorship as these have
from other regions than they provide. been shown to boost the next generation
of founders in their ability to scale.
Support organizations and institutional
investors are currently positioned to
provide links between Spain’s different
hubs. According to one scaled Endeavor
Entrepreneur, “Most communication

PERCENTAGE OF SPAIN’S INCOMING AND OUTGOING CONNECTIONS BY REGION

INCOMING OUTGOING

100%

75%

50%

25%

0%
Navarra Basque Country Madrid Catalonia Valencia Andalusia

Sources: Endeavor Insight analysis, LinkedIn, Crunchbase, PitchBook, company websites.

46
47
VIII. Recommendations

Decision makers in Spain should now work to align their efforts around the needs of these founders and take action
that lowers barriers for the most promising companies. The recommendations in this section are organized by
specific actors in the ecosystem. As a general guide, everyone who believes in the importance of entrepreneurship
can align their efforts around these four actions to create a more self-propelling ecosystem.*

Focus on scale.

1 As Spain’s tech network continues to mature, it is crucial to focus on the fastest-

growing companies that have the most potential to benefit the local economy. More
tech companies need to reach scale, and it should be easier for more businesses to
grow their operations locally. The successes of the local tech sector are apparent,
but a more enabling environment will help retain the most promising companies.

Understand local constraints and capacities.

2 This study outlines current barriers that are preventing founders from scaling their
companies. As the ecosystem matures and new subsectors emerge, founders
will face different challenges. Decision makers should continue to listen to the
experiences of entrepreneurs, especially those that have already scaled, as
they will be aware of the local context, and their knowledge will be most useful
in designing solutions that reduce constraints for the entire ecosystem.

Encourage founder reinvestment. Strong founder-to-founder relationships are

3 important for fostering a productive entrepreneurship ecosystem. The value of peer-
to-peer learning is immense, and more can be done to help cultivate those connections
in Spain’s tech sector. The positive perspective that most founders have about the
development of the ecosystem can be leveraged to increase the connectivity in the
ecosystem. As more leaders of entrepreneurial companies reach scale, they should be
encouraged to serve as mentors and angel investors for up-and-coming founders.

Place value on local entrepreneurship. The persisting negative perceptions of

4 entrepreneurship as a career path and local tech companies as viable economic
contributors will hinder growth in Spain. Decision makers should celebrate local
successes among founder-led companies, including listings on the local stock
exchanges. They can also encourage angel investment networks and founder-to-
founder mentorship to ensure that value is reinvested in the local ecosystem.

* For more on self-propelling ecosystem development, go to [Link]/self-propelling-ecosystems.

48
RECOMMENDATIONS FOR POLICYMAKERS AND
PUBLIC INSTITUTIONS
National and local governments should founders and talent. Several of Spain’s
create a more enabling environment for entrepreneurial leaders have relocated
growth stage companies by addressing because of the country’s quality of
the needs of scaleup founders. life including François Derbaix, angel
investor and serial founder of Toprural
Legislation to support Spanish tech startups and Rentalia originally from Belgium,
is improving, but more needs to be done to and Avi Meir who moved from Israel to
support local companies and minimize the Barcelona to attend IESE Business School
risk of relocation. One founder stated, and decided to stay because of the quality
“The regulatory bodies are not the most of life before cofounding TravelPerk.80
friendly. If I was to build a company
again, I’d think twice about starting it Examples from other European countries
in Spain, though I see the advantages suggest that more can still be done to
of having your HQ here. Maybe help attract people with specialized
incorporate in Delaware or Berlin and skills. There is a new regulation that
have the operational base in Spain.” aims to boost professional training and
increase the efficiency of public-private
Decision makers should work with partnerships in the field, but there remain
entrepreneurial stakeholders to create opportunities for closer collaboration
legislation addressing the main barriers that among public administrators and
prevent the most promising tech companies educational institutions to execute these
from growing. One of the greatest new policies to meet the real training and
challenges in Spain — and worldwide — talent needs of scaleup tech companies.
is access to talent, and current trends
suggest that this challenge is growing While the startup law introduced in
as both traditional and entrepreneurial 2021 makes processes less onerous for
companies expand their tech teams early stage companies, it contains few
to keep up with the new economy. measures to address persisting gender
and social divides, and does little for
Adigital, the Spanish Association of the late stage or internationally focused
Digital Economy, considers the difficulty in companies. Specific changes to the law
attracting workers and generating jobs in that would support scaleups include:
tech companies in Spain to be a brake on
growth and competitiveness. The tightness • Removing the €5 million
of this market is illustrated by the fact that revenue limit and extending
there is almost full employment for tech qualification to companies that
professionals in Spain, a country that has an are more than five years old.
overall unemployment rate of 13.1 percent,
rising to 27 percent for under-25s.79 • Extending the benefits for startups to
companies at later stages of growth
Spain is introducing a digital nomad visa,
which is an important step to support • Improving regulations on tax
Spain becoming a destination for foreign residence in Spain to boost the
return and attraction of talent.

“Spain has created legislative and public funding tools to consolidate a business
network based on the entrepreneurial culture, technology and high growth. These
public instruments should be constantly reviewed to measure their impact in the
ecosystem and their capacity to scale new companies.”

- César Tello, General Director of Adigital

49
 Public institutions such as universities and early This should include:
workforce development programs should encourage
entrepreneurship as a career path, help match • Programs that help encourage, identify, and support
potential cofounders, and improve the pipeline of promising students (especially female students)
talent. to build networks and develop their ambitions for
entrepreneurship.
Universities in Spain, particularly public universities,
have little focus on entrepreneurship compared to their • On campus events and projects that help students
peers in northern Europe. As one founder noted when from different degree programs (e.g., STEM and
interviewed, “There’s not a big push for universities to business) identify potential cofounders and develop
teach entrepreneurs. They need to start teaching people business ideas.
how to manage a business, how to deal with a VC,
• Incentives for universities to work with existing tech
funding rounds, and what types of different businesses companies in their city so that academic curricula
there are. Anyone can be an entrepreneur, everyone
better prepare graduates with the skills needed for
should understand how it works.” entry level positions.
Policymakers in the department of education
• Increased use of campus facilities and labs to
should work together with entrepreneurs and public support R&D of hardware-based tech innovations
universities to improve the structures that connect the
with clearer go-to-market support.
private sector with universities.
Other European governments can serve as examples for
Spain’s future legislation. Comprehensive government
policies and programs that are founder-friendly tend to
focus on access to later-stage capital and international
expansion, ease of starting a business, innovation and
R&D, visa programs, and employee stock options.

POLICY EXAMPLES

France: The French government supports late-stage Germany: To assist with international expansion,
tech entrepreneurs through its Next40/120 program, Germany’s Federal Ministry for Economic Affairs and
by testing new policies and services with selected Climate Action (BMWi) funds the German Accelerator,
companies, receiving input from entrepreneurs before which offers customized programs to companies to
changing regulations.81 The French Tech Mission’s remit assess their product-market fit and help them develop
is now expanding, with greater incentives for investors go-to-market strategies.84
to provide late-stage capital and plans to place officials
from the agency into every ministry of the government Netherlands: The government offers tax incentives for
in order to increase responsiveness to entrepreneurs’ startups and SMEs, a special startup visa, and support
needs.82 for international expansion.85

Italy: In 2020, the Italian Ministry of Economic United Kingdom: The UK has a dedicated Global
Development (MISE) dedicated €200 million to Entrepreneur Programme for foreign founders to
the National Innovation Fund, a “fund of funds” to receive mentorship and support within the UK, which
back innovative firms, as well as €500 million for the complements its Start-Up Visa program for foreigners
establishment of a technology transfer fund managed who demonstrate that they have a novel and viable
by the Enea Tech Foundation.83 business idea.86

50
RECOMMENDATIONS FOR SUPPORT ORGANIZATIONS
Accelerators, incubators, and networks can continue be effective such as international expansion services,
to help founders address barriers to scaling, introductions to investors, and peer-to-peer learning.
especially by coordinating across regions. Endeavor Insight has found that entrepreneurship
communities often place too much emphasis on serving
Support organizations should tailor their offerings to a large quantity of early-stage companies, when in fact
better match the needs of the sector and develop more more tailored services for the small number of growth-
pertinent curricula according to the sector, business stage companies can produce noteworthy results.
model, and customer type of their participants. For
instance, access to talent was the greatest challenge Leaders should identify the relative strengths of
identified by the founders interviewed for this study, but each region within Spain and improve the exchange
few organizations in Spain are working toward solutions of knowledge and resources between geographies.
in this area. Support programs also have an important role to play
in increasing the gender diversity of the sector, by
Mentoring in Spain is often conducted on an informal evaluating their search and selection processes to
basis. More formalized mentorship between reduce bias, offering specialized services, and including
experienced founders and the next generation more women in positions of influence.
of entrepreneurs will reinforce the behaviors in
the ecosystem that are known to help companies To help align programs with the needs of entrepreneurs,
scale. Support organizations can play a role here in support organizations should also have entrepreneurs
encouraging more successful founders to serve as in decision-making roles, allowing them to contribute to
mentors, and facilitating introductions. designing programs and making investment decisions.
Successful entrepreneurs are not only the best qualified
More resources should be devoted to the programs mentors for budding entrepreneurs, but can also make
that are already serving growth-stage companies to the best advisors for support organizations.
increase their capacity for activities that are known to

PROGRAM EXAMPLES

The Scaleup Spain Network supports and connects Valencia-based Lanzadera offers five different
scaleups as they mature and transform. This free incubator and accelerator programs. It has accelerated
program, offered by Fundación Innovación Bankinter, over 900 Spanish companies since being established
Endeavor, and Wayra, helps founders anticipate in 2013, with a focus on mentorship and ongoing
challenges, develop their management team, and connections.87 Lanzadera assigns a single project
create a collaborative network for peer learning. The director to each startup to act as mentor and guide,
six-month program includes mentorship from some as well as to ensure that the support is tailored to that
of the best scaled founders and experts in Spain and company.
internationally. The program has served founders of 24
companies in its first two years. SeedRocket is a Barcelona-based accelerator with
a focus on seed stage technology-based startups.
The Growth Academy program offered by Google It has partnerships with Google for Startups, VCs,
for Startups helps companies to increase customer public sector bodies, and universities, to provide
numbers, generate more revenue, and internationalize mentor-based training programs, as well as access to
their business. The Founders Academy is a mentorship- investors and business angels. SeedRocket mentors are
focused program offering global connections and entrepreneurs who have been through the programs
leadership development. Google for Startups Spain has and gone on to successfully build their companies,
supported 102 startups since being established in 2015. including the founders of Kantox, Idealista, Doctoralia,
and Sin Delantal.88

51
52
RECOMMENDATIONS FOR INTERNATIONAL TECH COMPANIES

International tech companies can have a Going forward, international tech

positive impact on Spain’s entrepreneurial companies can play an important role in the
ecosystem if they are mindful not to ecosystem by:
exacerbate challenges for local founders.
1. Encouraging managerial talent that
Founder interviews on the role of have outgrown the corporate ranks to
international tech companies highlighted consider mentoring or serving as staff
that they help to raise the quality of talent, for scaling entrepreneurial companies.
provide experience, and bring knowledge The managerial experience that large
to the country. While some founders tech provides will increase the pool of
expressed concern that international tech experienced administrators, and some
companies were reducing the pool of crossover can already be seen.
available talent and contributing to salary
inflation, undermines the prospects of local 2. Acknowledging promising employees
entrepreneurial companies, they generally who have ambitions to become
valued the products they offer to support entrepreneurs, especially female
local businesses and the jobs they help employees, and supporting them as
create. Nevertheless, corporations should they develop and launch their own
be mindful of their hiring practices to avoid companies. Several founders of Spanish
distorting employment markets or creating entrepreneurial tech companies started
salary pressures for local entrepreneurial their careers at local corporations.
tech companies.

EXAMPLES OF FOUNDERS WHO WORKED AT INTERNATIONAL TECH COMPANIES

Three of Paradigma’s cofounders, Ernesto Funes, Oscar The cofounders of Seedtag, a contextual advertising
Méndez Soto, and Carmen Vidal, met while working company that utilizes AI, both worked at Google Madrid
at Indra, an international IT corporation. Through prior to launching their business in 2014. The former
a colleague they met Ignacio Cabrera, and the four Googlers Albert Nieto and Jorge Poyatos have since
founded Paradigma in 2007 before selling it to Indra in expanded the company to more than a dozen countries
2018. Funes and Méndez Soto are also cofounders of and raised more than €250 million in July 2022 .91
Stratio, which they spun off from Paradigma in 2014.89

Lupina Iturriaga and her cofounder at Fintonic met

while working at Banesto, a multinational financial
services company, acquired by Banco
Santander in 2012.90

53
RECOMMENDATIONS FOR ENTREPRENEURS
Strong founder-to-founder relationships This includes:
are important for fostering a productive
entrepreneurship ecosystem. • Encouraging more leaders of
entrepreneurial companies to serve as
The value of peer-to-peer learning is mentors for up-and-coming founders.
immense, and more can be done to help
cultivate those connections in Spain’s • Establishing angel networks and
tech sector. The founders in this study offering training on becoming angel
already have a very hopeful outlook on the investors.
ecosystem, with 95 percent of respondents • Inviting successful founders to serve
who were positive or extremely positive
on the boards of support organizations
about the future of the ecosystem. This
or as advisors for policy and program
consensus can be leveraged to increase design.
more formalized and frequent connectivity
in the ecosystem.

ANGEL INVESTMENT EXAMPLES

created a vehicle through which many of the earlier
One of Spain’s foremost angel networks is the IESE
generation of tech entrepreneurs invested as an angel
Business Angels Network, founded in 2003. It has
group. It has invested in Glovo, Wallapop, and Elma Care,
brought together more than 200 individual investors,
among other Spanish and international tech firms.
providing financing for over 300 startups, including
Privalia.

Antai Venture Builder was founded in 2012 by Miguel

Vicente and Gerard Olivé to help fund digital businesses.
Now a VC fund, it

54
RECOMMENDATIONS FOR VENTURE CAPITAL FIRMS

Foreign VCs should continue to partner gained by local actors as well as in the
with local investors on rounds to create a likelihood that some of the wealth created
more mature and sustainable ecosystem via an eventual exit will be invested in the
where wealth is reinvested in the local local ecosystem. The strategy can be
community when exits occur. beneficial for the entrepreneur, who is given
access to the local expertise of the local
The number of Spanish VCs continues to partners, while also receiving the larger
grow, as do the amounts that they are able funds available from international VCs.
to invest. According to the Spanish Venture
Capital Association, SPAINCAP, the amount Other notable tech companies that have
invested by local private VC firms rose from benefited from a mix of international
€120 million in 2015 to €312 million in 2020. and local VCs in funding rounds include
Over the same period the amount invested Spotahome and healthtech startup
by international VCs in Spanish firms Savana. In 2021, Spotahome raised €25
rose from €401 million to €452 million.92 million in a round led by 14W (New York)
Investment grew even more strongly in with participation from Spain’s Seaya
2021, to an estimated total €1.9 billion, of Ventures and Alma Mundi Ventures. And in
which international VC firms accounted for April 2022, Savana raised €25 million in a
€1.6 billion.93 The strong growth in 2021 was funding round led by Madrid-based Conexo
influenced by some mega rounds, which are Ventures alongside two other Spanish
still the preserve of international VCs. VCs, Seaya Ventures and Aldea Ventures.
Cathay Innovation (San Francisco) and
While local VCs are undoubtedly playing Knuru Capital (Dubai) also participated.
a greater role, they still lack the capacity The managing partner of Conexo Ventures,
to lead the larger rounds. Partnerships Joaquím Hierro Lopes, spoke of their
between international and Spanish investors “commitment to the healthcare sector”
can benefit the local ecosystem, both in and of supporting Savana “in its ambitious
terms of the exposure and experience growth and international expansion plan.”94

VENTURE CAPITAL EXAMPLES

Glovo raised the second largest round in 2021, a Series F
Jobandtalent’s December 2021 Series E round of $500
of €450 million that was led by New York-based Lugard
million — one of the largest seen to date — was led by
Road Capital and Luxor Capital Group.95
London’s SoftBank Vision Fund. Importantly, local VCs
Kibo Ventures and Alma Mundi Ventures (both from The third major round closed in 2021 was by Idealista,
Madrid) participated in the round. Jobandtalent had which closed two private equity rounds totaling
earlier in 2021 raised rounds of $88 million and $200 €425M.96 Each was led by a London-based firm, Oakley
million. Capital and Apax Ventures.

55
 Glossary

Entrepreneurial companies: For- Scale: A measure of a company’s

profit businesses that are started by growth; in this study, defined as
individuals. This excludes businesses employing 50 or more people.
that began as government entities or
subsidiaries of larger companies. Support organizations: Organizations
offering skill-development programs,
Investment types: investment, mentoring, or other support for
entrepreneurs. These include incubators,
Angel investment: An investment in a accelerators, and other programs.
company made by an individual, not on
behalf of a business or investment firm.
Unicorn: An entrepreneurial company
Institutional investment: An investment with a valuation in excess of $1 billion.
made by a company or organization.

Venture capital: Investment in

businesses that have high growth
potential. Venture capitalists (VCs)
often provide expertise in finance and
operations, in addition to capital.

Mentorship: A relationship through

which a mentee will meet a mentor; in
this study, defined as meeting at least
three times for a minimum of 30 minutes
to discuss critical business issues.

Network: A group of actors working to

support local entrepreneurs. This includes
capital providers such as investors and
foundations, support organizations,
government and international aid agencies,
and experienced entrepreneurs.

56
57
Methodology
Sampling Frame: 3. The company is entrepreneurial.
Companies were considered “targets” and included in
the sampling frame if they met the following criteria: Entrepreneurial companies are for-profit companies
started by individuals. They excludes businesses
1. The company is local. that began as either government entities; or local
divisions of corporations based in other cities.
Companies were included if they were: a) founded in
Spain, or b) currently headquartered in Spain after
they were founded elsewhere. Target companies Data Collection:
also included businesses that have closed after The data collected for this project comes
being founded or headquartered in the country, or primarily from surveys and interviews with
those that have been acquired after being founded or local entrepreneurs and stakeholders.
headquartered in Spain. In select cases, exceptions
were made when the official headquarters of the This study began by identifying “VIP entrepreneurs”
company was outside the country for legal and other and other stakeholders who had an in-depth
reasons, but the majority of operations were based out perspective on the sector. VIP entrepreneurs
of Spain and their founders made contributions to the selected for interviews were identified based on:
local ecosystem.
A) Scale – i.e., the current largest
2. The company fits the definition companies in the sector, or
of a technology company.
B) Influence – i.e., companies that have made
Technology companies are defined as for- large exits, received large investments, or
profit businesses whose primary activity were otherwise noteworthy or influential.
could be described as either:
The responses helped characterize the relationships
• Software development for enterprises (e.g.,
between founders and establish a list of the sector’s
CRM and logistics systems, security software,
most “influential organizations,” i.e., organizations
outsourced software and app development), or
with outsized influence. They also provided critical
consumers (e.g., mobile apps, digital gaming), or
data on the challenges, network characteristics, and
• E-commerce: Internet-based or mobile-based subsector dynamics that helped inform later analysis.
retail or services (e.g., e-commerce, delivery
platforms, content platforms, online lenders), or The resulting primary company list formed a basis for
the study, along with additional companies identified
• Electronic hardware design and manufacturing
through other sources including databases such as
(e.g., data storage components, IoT devices, etc.), or
Crunchbase and Pitchbook, as well as the portfolio
• Other tech-enabled businesses, considered companies of investors and entrepreneurship support
on a case-by-case basis where substantial organizations operating in the city. Only target
operations relate to technology (e.g., retail or companies moved forward for further investigation, i.e.,
manufacturing that utilizes tech-enabled business those fitting the aforementioned criteria. Entrepreneurs
models for reaching/serving customers). from the target list received invitations to set up an
This definition excludes firms for whom software interview via video conference. This mass outreach
development is a secondary activity, such as consulting campaign used standard questions, but the interviews
firms, graphic design firms, BPOs, etc., as well as were adapted as needed to be more conversational.
businesses in which internet and mobile-based
In order to ensure that the company list was
platforms are secondary platforms, such as print
comprehensive, a secondary list of companies was
newspapers and brick-and-mortar retail stores, and
compiled from those mentioned in the interviews
companies for whom the creation of electronic hardware
and surveys that were not already on the primary
is a secondary activity, such as car manufacturers.

58
list. The secondary list included additional on an index of founding date, number of employees, total
companies sourced from the portfolio companies investment, and exit sizes. Where an entrepreneur had
of those associated with the new mentions, and founded an investment firm or support organization, it
new companies found on LinkedIn while collecting was the company entity that took precedence (if they
data on entrepreneurs and companies. These founded one), followed by the founder’s investment firm,
secondary targets then received invitations to followed by the accelerator or support organization.
complete interviews. Additional data was included on
investments and support organization portfolios. The size of an organization’s influence in the network
was based on directed closeness centrality for
unconnected graphs. In other words, the size of an
Network Analyses: organization was a function of the number of first-,
second-, third-, etc. degree connections that the
Previous research by Endeavor Insight has
organization and its entrepreneurs had to others
found that there are three main connection
in the network. All connections on the map were
types among entrepreneurs that drive the
growth of an industry. These are: weighted equally. Financials and employee counts
did not factor into an organization’s centrality.
1. Former employment;
Companies were only included in the analysis
2. Mentorship and other types of support; if it was possible to identify their founding year.
Companies that were no longer operating were
3. Investment; and included in the analysis if it was possible to find
enough data to target them. For companies that
4. Serial entrepreneurship.
were acquired, the number of employees at the
To learn about these connections within time of acquisition were used. Regional analyses
entrepreneurship communities, the interviews omit public capital providers that fund nationally.
focused on four core questions:
Limitations:
1. Who invested in your company? (This includes
both angel and institutional investors.) Omitted variables may have played a role in sampling,
creating bias that would otherwise expose gaps
2. Who mentored you during the growth
in the research process. The study’s interview
and development of your company?
process, verification, and analysis procedures were
3. What support organizations have meant to offset any adverse effects. If gaps in or
you participated in? misinterpretations of the data were revealed during
the analysis, the map and results were corrected.
4. Which of your former employees have gone While efforts were made to be as complete as possible
on to found tech companies in your city? in data collection by using a mixed methodology
for data gathering and a detailed respondent
LinkedIn provided data for the analysis of founder
verification process, the observed data used in this
work and education histories. Additional information
study is only a highly developed representation of
on support organization participation was collected
the entrepreneurship network in each community
from local organizations. This combined primary and
and may omit certain data or attributes.
secondary data formed an edge list of connections
among organizations, along with a corresponding set
of three types of outbound connections. The edge Confidentiality:
list then informed all subsequent network analyses
Endeavor maintains confidentiality, and collected data is
and created the network map visualizations.
accessible only to Endeavor and its research partners.
For all network analyses, each founder was assigned
to only one company or organization. Where an
entrepreneur had founded multiple companies, his
or her most prominent company represents his or her
influence in the analysis and on the map. This was based

59
Endnotes

1 Kishinchand, Indra. “There are currently 9 unicorns in Spain and there are 20 other companies that could
become unicorns in the next two years.” StartupsReal. 25 Jan. 2022. [Link]/there-are-currently-
9-unicorns-in-spain-and-there-are-20-other-companies-that-could-become-unicorns-in-the-next-two-
years. Accessed 18 May 2022.

2 Ibid.

3 Crunchbase.

4 Endeavor Insight interview. Jan. 2022.

5 Spanjaart, Jasper. “Backed with $500M, Jobandtalent goes for the American dream.” ToTalent. 17 Dec.
2021. [Link]/backed-with-500m-jobandtalent-goes-for-the-american-dream. Accessed 11 Jul. 2022.

6 Crunchbase.

7 Taylor, Dan. “Goldman kicks up the heat as Fever raises $227 million+, now at $1 billion
valuation.” [Link]. 26 Jan. 2022. [Link]/2022/01/26/goldman-kicks-up-the-heat-as-
fever-raises-227-million-now-at-1-billion-valuation/. Accessed 16 Sep. 2022.

8 Ibid.

9 Bezek, Ian. “WallBox: Getting to Know This Global Charging Leader.” Nasdaq. 18 Oct. 2021. [Link]/
articles/wallbox%3A-getting-to-know-this-global-charging-leader-2021-10-18. Accessed 18 May 2022.

10 Ibid.

11 Endeavor Insight founder interviews and analysis, LinkedIn, Crunchbase, company websites.

12 Endeavor Insight interview. Dec. 2021.

13 Kantox. “About Kantox.” [Link]/en/about-kantox. Accessed 18 May 2022.

14 Carvajal, R. & C. Ruiz. “Las cinco startups españolas que han logrado ser “unicornio”.” La Razón. 4 Oct. 2020.
[Link]/economia/20201004/[Link]. Accessed 18 May 2022.

15 Kishinchand, Indra. “There are currently 9 unicorns in Spain and there are 20 other companies that could
become unicorns in the next two years.” StartupsReal. 25 Jan. 2022. [Link]/there-are-currently-
9-unicorns-in-spain-and-there-are-20-other-companies-that-could-become-unicorns-in-the-next-two-
years. Accessed 18 May 2022.

16 Wallapop. “We are your community, the Wallapop Community.” [Link]/en. Accessed 22 May
2022.

17 Top Doctors. [Link]. Accessed 18 May 2022.

18 Barto, Leah & Rhett Morris. “How Cities Can Identify the Best Businesses for Local Economic Growth.”
Endeavor Insight. Sep. 2020. [Link]/best-businesses. Accessed 10 Jan. 2022; Endeavor Insight.
“Scaling Up Fintech Companies in Southeast Michigan.” Nov. 2021. [Link]/semi-fintech. Accessed 8
Mar. 2022.

60
19 Endeavor Insight founder interview.

20 De Bruin, Simone & Marta Munoz. “European Women in VC. Analysing the role and importance of women as
cheque writers and start-up founders.” International Data Corporation. May 2022. Europeanwomeninvc.
[Link]. Accessed 19 Jul. 2022.

21 Nina Capital and Level 20. “GENDER DIVERSITY IN PRIVATE EQUITY AND VENTURE CAPITAL IN SPAIN
(2021).” Level 20. Aug. 2021. [Link]/research/nina-capital-and-level-20-launch-gender-diversity-in-
private-equity-and-venture-capital-in-spain-2021. Accessed 11 Jul. 2022.

22 De Bruin, Simone & Marta Munoz. “European Women in VC. Analysing the role and importance of women as
cheque writers and start-up founders.” International Data Corporation. May 2022. Europeanwomeninvc.
[Link]. Accessed 19 Jul. 2022.

23 AbdelAzim, Maha & Leah D. Barto, “Women in Entrepreneurship.” Endeavor Insight. Aug. 2020. endeavor.
org/women-in-entrepreneurship. Accessed 10 Jul. 2022.

24 Endeavor Insight interview with Adigital. 19 Jul. 2022.

25 Lomas, Natasha. “‘We are going to create the best environment for startups in Europe’.” TechCrunch. 26 Jan.
2022. [Link]/2022/01/26/spain-startup-law-interview-francisco-polo. Accessed 18 May 2022.

26 Endeavor Insight interview with Adigital. 19 Jul. 2022.

27 Lomas, Natasha. “‘We are going to create the best environment for startups in Europe’.” TechCrunch. 26 Jan.
2022. [Link]/2022/01/26/spain-startup-law-interview-francisco-polo. Accessed 18 May 2022.

28 González, Rocío. “El Gobierno aprueba la Ley Crea y Crece para aumentar el emprendimiento.” El País.
2 Dec. 2021. [Link]/cincodias/2021/12/02/emprendedores/1638400094_902766.html.
Accessed 13 Jul. 2022.

29 Ministerio de Asuntos Económicos y Transformación Digital. “El Gobierno lanza en audiencia la Ley
Crea y Crece que facilita la creación de empresas, lucha contra la morosidad comercial y reduce trabas
a la expansión del negocio de las pymes.” 27 Jul. 2021. [Link]/ca-es/comunicacion/
Pagines/210727_np_crea.aspx. Accessed 13 Jul. 2022.

30 Plaza, Analía. “Tuenti Mafia: así se gestó la mayor cantera de talento tecnológico de España.” El
Confidencial. 27 May 2015. [Link]/tecnologia/2015-05-27/tuenti-cantera-startups_854855.
Accessed 19 Jul. 2022.

31 Ibid.

32 LinkedIn. [Link]/in/inakiberenguer. Accessed 11 Jul. 2022.

33 Endeavor Insight founder interviews.

34 LinkedIn. [Link]/in/inakiberenguer. Accessed 11 Jul. 2022.

35 Aon. “Aon completes acquisition of CoverWallet, the leading digital insurance platform for small and
medium-sized businesses.” 1 Jul. 2020. [Link]/about-aon/investor-relations/investor-news/news-
release-details/2020/Aon-completes-acquisition-of-CoverWallet-the-leading-digital-insurance-platform-
for-small-and-medium-sized-businesses/[Link]. Accessed 11 Jul. 2022.

36 Crunchbase, LinkedIn.

37 LinkedIn. [Link]/company/ipronics-programmable-photonics. Accessed 11 Jul. 2022.

61
 38 LinkedIn. [Link]/in/inakiberenguer. Accessed 11 Jul. 2022.

39 Morris, Rhett & Lili Torok. “Fostering Productive Entrepreneurship Communities.” Endeavor Insight.
Oct.2018. [Link]/fpec. Accessed 8 Mar. 2022.

40 Endeavor Insight interview, Jan. 2022.

41 Ibid.

42 Alcalde, Lucas & Nathan Rennolds. “How Glovo co-founder Oscar Pierre helped build a startup worth $2.6
billion.” Business Insider. 4 Mar. 2022. [Link]/glovo-founder-oscar-pierre-path-idea-2-
billion-dollar-company-2022-3?r=US&IR=T. Accessed 18 May 2022.

43 Endeavor Insight interview, Jan. 2022.

44 Musgrove, Annie. “Glovo reaches unicorn status with €150 million Series E.” [Link]. 19 Dec. 2019. tech.
eu/2019/12/19/glovo-reaches-unicorn-status-with-e150-million-series-e. Accessed 18 May 2022.

45  lcalde, Lucas & Nathan Rennolds. “How Glovo co-founder Oscar Pierre helped build a startup worth $2.6
A
billion.” Business Insider. 4 Mar. 2022. [Link]/glovo-founder-oscar-pierre-path-idea-2-
billion-dollar-company-2022-3?r=US&IR=T. Accessed 18 May 2022.

46 Universidad de Granada. “Inscríbete ya al programa de Mentoring de Glovo y CEAJE.” 4 Apr. 2022.

[Link]/inscribete-ya-al-programa-de-mentoring-de-glovo-y-ceaje. Accessed 18 May
2022.

47 IdeasUPV. “University Startup Mentoring by Glovo.” 18 Nov. 2021. [Link]/university-startup-

mentoring-by-glovo. Accessed 18 May 2022.

48 Smits, Lotus. “LeaderSHE: moving the needle, one step at a time.” Glovo. 1 Dec. 2021. [Link]/
leadershe-moving-the-needle-one-step-at-a-time. Accessed 18 May 2022.

49 Retail Technology Innovation Hub. “Glovo unveils digital learning programme for couriers.” 26 Apr. 2022.
[Link]/home/2022/4/26/glovo-unveils-digital-learning-programme-for-couriers.
Accessed 18 May 2022.

50 Omusolo, Moses. “Glovo boosts 4,000 small businesses with ICT skills.” The Standard. 11 May 2022.
[Link]/business/enterprise/article/2001445098/glovo-boosts-4000-small-businesses-
with-ict-skills. Accessed 18 May 2022.

51 Endeavor Insight interview, Jan. 2022.

52 Cabify. [Link]/es/sobre-nosotros. Accessed 11 Jul. 2022.

53 Paul, Megha. “Cabify gets €40 million EIB-backing to drive in zero-emission fleet in Spain by 2025.” [Link].
11 May 2022. [Link]/2022/05/11/cabify-gets-eur40-million-eib-backing-to-drive-in-zero-emission-fleet-
in-spain-by-2025. Accessed 18 May 2022.

54 Ibid.

55 LinkedIn.

56 Runa. “Sobre Runa.” [Link]/mx/sobre-nosotros. Accessed 18 May 2022.

57 Petzinger, Jill. “‘We had to look for opportunities elsewhere’: Cabify founder on LatAm expansion.” [Link].
22 Jun. 2021. [Link]/2021/06/22/we-had-to-look-for-opportunities-elsewhere-cabify-founder-on-latam-
expansion. Accessed 18 May 2022.

62
58 European Commission. “#NextInnovationEU. EU Unicorns Call on Europe and Its Leaders.” 2 Apr. 2021.
[Link]/wp-content/uploads/2021/04/2.-[Link]. Accessed 18
May 2022.

59 Invest in Spain. “International venture capital broke records in Spain in 2021.” [Link]/content/
icex-invest/en/noticias-main/2022/[Link]. Accessed 23 Aug. 2022; SPAINCAP.
“Survey – Venture Capital & Private Equity in Spain 2022.” 22 Jun. 2022. [Link]/en/estadisticas-
publicaciones/activity-reports. Accessed 25 Aug. 2022.

60 SPAINCAP. “Preliminary Estimates — Private Equity & Venture Capital in Spain.” 2022.

61 Carbonell, Jonatan. “Venture capital in Spain: What is venture capital and its evolution in the country?” TAS
Consultoria. 30 Sep. 2021. [Link]/blog-en/venture-capital-spain-venture-capital-evolution-
country. Accessed 23 Aug. 2022.

62 Pitchbook. Accessed 23 Aug. 2022.

63 Empresa Nacional de Innovación SA (ENISA). [Link]/en. Accessed 18 May 2022.

64 Centro para el Desarrollo Tecnológico Industrial (CDTI). [Link]. Accessed 18 May 2022.

65 SPAINCAP. Endeavor Insight interview. Aug. 2022.

66 OECD. “OECD Foreign Direct Investment Regulatory Restrictiveness Index.” [Link]/en/

indicator/74. Accessed 18 May 2022.

67 Buck, Tobias. “Madrid, Spain — Start-ups spawned from economic crisis.” Financial Times. 24 Aug. 2016.
[Link]/content/2a24989a-4d03-11e6-8172-e39ecd3b86fc. Accessed 18 May 2022.

68 The Local. “Meta, IBM, Google, Amazon: How thousands of tech jobs are being created in Spain.” 21 Mar.
[Link]/20220321/meta-ibm-google-amazon-how-thousands-of-tech-jobs-are-being-created-
in-spain. Accessed 18 May 2022.

69 Ibid.

70 Pitchbook. Accessed 25 Aug. 2022.

71 Polo, Francisco. LinkedIn post. [Link]/feed/update/

urn:li:activity:6942820420312039424/?lipi=urn%3Ali%3Apage%3Ad_flagship3_profile_view_base_
recent_activity_details_all%3B7XBqGkiiQoCAkMlSc8srDA%3D%3D. Accessed 26 Aug. 2022.

72 Lomas, Natasha, “Spanish scale-ups club together to shift the tech policy agenda.” TechCrunch. 7 Apr.
2022. [Link]/2022/04/06/estech. Accessed 25 May 2022.

73 Ibid.

74 España Tech (EsTech). [Link]. Accessed 25 May 2022.

75 De Marzo, Stefano. “A Spanish unicorn organization is born to lead a new digital production model.”
Novobrief. Mar. 2022. [Link]/a-spanish-unicorn-organization-is-born-to-lead-a-new-digital-
production-model/8770. Accessed 25 May 2022.

76 Scaleup Spain Network. “Impacto de las scaleups en la economía de España.” Nov. 2021. [Link]/
informe. Accessed 25 May 2022.

77 Endeavor Insight. “Scaling Up: An Evaluation of Southeast Michigan’s Entreprenuership Community.” 2021.
[Link]/semi-research. Accessed 8 Aug. 2022.

63
78 Ibid.

79 Endeavor Insight interview with Adigital. 19 Jul. 2022.

80 Novoa, Jaime. Novobrief. “Half entrepreneur, half investor: a candid interview with François
Derbaix.” [Link]/francois-derbaix/80/. Accessed 26 Aug. 2022; Beckford, Nathan.
“How I Raised It with Avi Meir of TravelPerk.” Medium. 4 Dec. 2018. [Link]/foundersuite/
how-i-raised-it-with-avi-meir-of-travelperk-b514ddf5d13d. Accessed 26 Aug. 2022.

81 La French Tech. “The Support Program for French Late-Stage Startups.” [Link]/en/how-france-
helps-startups/ft120. Accessed 10 Jan. 2022.

82 Dillet, Romain. “Macron Announces €5 Billion Late-Stage Investment Pledge from Institutional Investors.”
TechCrunch. 17 Sep. 2019. [Link]/2019/09/17/macron-announces-e5-billion-late-stage-
investment-pledge-from-institutional-investors. Accessed 10 Jan. 2022.

83 Ministero dello sviluppo economico. “Le Startup e le PMI Innovative: Resilienza e Crescita.” 21 Dec.
2020. [Link]/[Link]/it/per-i-media/notizie/it/198-notizie-stampa/2041819-le-startup-e-le-pmi-
innovative-resilienza-e-crescita. Accessed 10 Jan. 2022.

84 Federal Ministry for Economic Affairs and Climate Action. “Start-Ups: A Driving Force for Growth and
Competition.” [Link]/Redaktion/EN/Dossier/[Link]. Accessed 10 Jan. 2022.

85 Netherlands Enterprise Agency. “Innovation Credit.” [Link]/subsidies-programmes/innovation-

credit. Accessed 22 May 2022.

86 Government of the United Kingdom. “Start-up Visa.” [Link]/start-up-visa. Accessed 22 May 2022.

87 Lanzadera. [Link]. Accessed 11 Jul. 2022.

88 SeedRocket. [Link]/mentores/mentores-nuestros. Accessed 11 Jul. 2022.

89 Endeavor Insight founder interview, Dec. 2021.

90 Endeavor Insight founder interview, Jan. 2022.

91 Endeavor Insight founder interviews, Dec. 2021 and Jan. 2022; Seedtag. [Link]/seedtag-
raises-over-250m-from-advent-international-0. Accessed 22 Aug. 2022

92 Asociación Española de Capital, Crecimiento e Inversión. “Informe 2021. Venture Capital & Private Equity
en España.” 2021. [Link]/wp-content/uploads/2021/04/[Link]. Accessed 11 Jul.
2022.

93 De Marzo, Stefano. “Is there really a VC boom in Spain? 4 fund managers respond.” Novobrief. Feb. 2022.
[Link]/is-there-really-a-vc-boom-in-spain-4-fund-managers-respond/8615. Accessed 11 Jul.
2022.

94 Paul, Megha. “Savana gets $25 million booster to make clinical research more powerful with big data.” tech.
eu. 5 Apr. 2022. [Link]/2022/04/05/savana-gets-25-million-booster-to-make-clinical-research-faster-
and-more-powerful. Accessed 11 Jul. 2022.

95 Crunchbase. Glovo. [Link]. Accessed 8 Aug. 2022.

96 Torrego, José. “2021 exceeds €4 billion invested in Spanish startups.” Startups Real. 3 Jan. 2022.
[Link]/2021-exceeds-e4-billion-invested-in-spanish-startups. Accessed 3 Aug. 2022.

64
Photo Credits
p.6 Photo courtesy of Jobandtalent.
p.12 Photo courtesy of RatedPower.
p.20 Photo courtesy of Iñaki Berenguer.
p.22 Photo courtesy of Glovo.
p.24 Photos courtesy of Cabify.
p.36 Photo courtesy of Samaipata.
p.36 Photo courtesy of Glovo.
p.38 Photos courtesy of Google For Startups.
p.39 Photo courtesy of Google For Startups.
p.40 Photo courtesy of Google For Startups.
p.41 Photo courtesy of Endeavor Spain.

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