Barcelona’s tech startup ecosystem has placed itself as a major hub for tech startups globally. The city hosts the World Mobile Congress (MWC), a major technology exhibition designed to spotlight the international mobile communications sector. Barcelona is currently ranked among Europe’s top ten ecosystems according to various measures.
A closer look at the funding environment, as perceived from Barcelona, reveals an overall improved environment for tech startups. According to Jordi Romero, co-founder of B2B software company Factorial, the ability to raise capital in Barcelona has significantly improved since they founded the company back in 2016. Factorial, which offers a cloud-based service for automating HR admin and finance functions targeting small and midsized businesses, has managed to raise $200 million, with their last Series C round netting $120 million.
The improvement in funding environment is echoed by Rocio Alcocer, COO of Norrsken House – a coworking space for sustainability startups. She observes that while it’s easier to secure pre-seed and seed funding, the finance ecosystem is still developing with room for growth, even at later funding stages.
The positive trend in the local funding ecosystem, Alcocer observes, is partially attributable to the success of standout companies and the rise of unicorns like Glovo, Cabify, TravelPerk, and Factorial. These success stories have managed to attract more capital into the city. Avi Meir, CEO of business travel management company TravelPerk – one of Barcelona’s unicorns – notes that investors are now willing to invest in Barcelona, a shift from 10 to 15 years ago.
However, a key challenge is the dominance of overseas funds in the growth end of the investment market. Romero notes that Spain doesn’t currently have funds large enough to fuel growth within the country, although he remains optimistic that it will change over time.
Despite this, Barcelona has managed to attract talent and grow its technology sector without substantially driving up the cost of living. The city’s quality of life and the Mediterranean climate have made it attractive to foreign talent. Both Romero and Meir share personal experiences of successfully hiring foreign nationals eager to relocate and live in Barcelona.
Barcelona provides grassroots support for startups, promoting local success and providing platforms for startups. The Itnig Cafe, for instance, is funded by Factorial’s founders and has evolved into a meeting place, workplace, and pitching venue for early ventures. Impact-focused Norrsken House also offers investment and accelerator programs as grassroots support.
Source: Where Next For Barcelona’s Startup Funding Ecosystem?.
