In recent years, Scaleup Spain has gone through waves of rapid growth – some quite remarkable, particularly in 2021 and 2022, when Spain outpaced all other European hubs. Even in 2023, amid global economic winds of recession, Spain stood out as one of Europe’s most resilient innovation ecosystems.

These results are no accident. As this report highlights, Spain continues to benefit from:

• A vibrant startup community, supported by 15+ annual world-class tech events that draw hundreds of thousands of participants each year
• A solid base of more than 120 active investors (a full directory is available for free on our MTB Ecosystem platform)

Yet, structural challenges for Scaleup Spain are coming sharply into view. First, while Spain generates thousands of early-stage startups, scaling them locally remains a significant hurdle. Fewer than one-third of Spanish investors focus on Series A, and only 19 provide growth capital. That reality is already reflected in a rather underwhelming first half of 2025 in terms of new scaleups – just 35 (i.e. pre-2018 levels), though current investments compare to 2023-2024 average amounts.

The Madrid-Barcelona “scaleup duopole” is lacking momentum, raising concerns about the actual effectiveness of this unique model. While having two major hubs can help mitigate the risk of overconcentration, it can also dilute density, leaving both cities below the critical mass needed to compete globally. This limitation is especially stark in the current global context. Thriving scaleup cities like Seoul now outpace all of Spain – not just in number of scaleups (1,555 vs. 1,194), but in capital raised (more than triple Spain’s total).

For Scaleup Spain, it’s now or never. Unlocking the next phase of growth will require bold steps: stronger public-private alliances, a clear strategy to invest in frontier technologies, and deeper international connections. The proposed España Tech Alliance – modeled on France’s La French Tech – could be a promising start. But more needs to happen. Because, as we often say, in the world of innovation it’s “evolve or be extinct”.