Spain’s startup ecosystem has reached a combined enterprise value of €100 billion, driven by the rapid growth of climate tech and biotech sectors. While Madrid and Barcelona remain the dominant hubs, other regions—such as Valencia, Málaga, Plug & Play and the Basque Country—are emerging as key innovation centers. Each region has distinct strengths, with Valencia excelling in mobility tech and the Basque Country leading in industrial innovation.
Despite a global downturn in venture capital (VC), Spain’s startups secured €2.2 billion in funding in 2023, with early-stage deals reaching record highs. This resilience has positioned Spain as the sixth-largest recipient of VC investment in Europe, outperforming many other markets.
However, while early-stage funding is thriving, late-stage capital remains scarce. To bridge this gap, Plug & Play has introduced a follow-on investment strategy designed to keep Spanish talent and innovation within the country. This is crucial given Spain’s strong economic ties with Latin America, where three of the top 10 recipients of Spanish VC investment are based
Plug & Play Tech Center, a global innovation platform with a strong presence in Spain, has partnered with EA Ventures, a venture capital firm focused on emerging markets, to launch a new €20 million fund. Announced on March 26, 2025, this initiative aims to support Spanish startups and entrepreneurs worldwide. Although it represents only about 1% of Spain’s annual VC investment, it is a strategic step toward strengthening the ecosystem
Active in Spain since 2012, Plug & Play has operated accelerators in Valencia and Barcelona, backing successful startups such as Wallbox (EV charging) and Factorial (HR tech). Founded by Alberto Gutiérrez, Juan-Luis Hortelano, and Saeed Amidi, Plug & Play Spain has played a key role in the country’s startup ecosystem, connecting regional startups with global markets through a three-month acceleration program split between Sunnyvale and Valencia.
The new fund will primarily target seed-stage startups based in Spain or founded by Spanish entrepreneurs worldwide. Initial investments will range from €200,000 to €500,000, with follow-on funding of up to €1 million for high-potential companies. The fund will focus on AI applications in enterprise solutions, fintech, sustainability, mobility, and e-commerce.
Borja Aznar, Managing Director of Plug & Play Southern Europe, emphasized the company’s confidence in Spain’s growing startup ecosystem: “Our confidence in Spain’s ecosystem is unwavering. This fund combines financial support with strategic global connections to amplify Spanish innovation.”
The initiative aligns with Spain’s Entrepreneurial Nation Strategy, a government-driven effort to support private investment through tax incentives, grants, and business-friendly regulations.
Beyond financial support, the fund offers startups access to Plug & Play’s global network of over 600 multinational corporations, investors, and tech experts. Entrepreneurs participating in the program will receive mentorship, scaling strategies, and exposure to Silicon Valley’s tech ecosystem through international acceleration programs
The new Plug & Play–EA Ventures fund aims to support 30–35 disruptive startups with scalable solutions and global potential. Erik Aubakirov, CEO of EA Group, reinforced this vision:
“Spain’s startups have exceptional potential. Our experience in scaling across emerging markets will accelerate their international growth.”
The launch of this fund marks a crucial step in Spain’s journey to becoming a top European tech hub. By combining capital with global connections, it helps address funding gaps and empowers Spanish startups to compete on an international scale.
Spain’s startup ecosystem has experienced a shift in investment patterns since 2019, moving from steady growth to fluctuating investment cycles. However, its traditionally modest valuations and deal sizes have proven advantageous, making the market less volatile during the global downturn. With lower operating costs and increasing VC interest, Spain and Southern Europe are becoming attractive regions for investors.
The fund also highlights the growing collaboration between academia and venture capital in Spain. Initiatives like UCAM’s partnership with Plug & Play—the first of its kind between a Spanish university and the US accelerator—demonstrate the country’s commitment to fostering talent and driving innovation.
As Spain continues to mature as a tech hub, sustained focus on late-stage funding and cross-border collaboration will be essential to nurturing homegrown unicorns and preventing talent from seeking opportunities abroad.
