Welcome to our third Local Deep Dive email!
🇪🇸 🇵🇹 As we've journeyed through the rich world of startup ecosystems and investment landscapes across Spain and Portugal in our previous editions, it's now time to look ahead. 🔍
In this newsletter, we're going to check out the new trends and what we think will happen next in the venture capital world here on the Iberian Peninsula.
In our continuous effort to bring you insights from leaders across the venture capital landscape, we planned the interview with Alberto Gomez, the co-founder and current managing partner of Adara Ventures, but unfortunately, due to scheduling conflicts, we've had to postpone to next week. 😒
Dive into this edition and get ready for the insights we've gathered from top-tier sources and the invaluable experiences of our local team. 🚀 Keep your excitement levels high for next week's edition, where we'll bring you groundbreaking insights from industry leader Alberto!
Looking forward
🚀 Unveiling Future Trends in the Venture Capital and Tech Ecosystems of Spain and Portugal
As we gaze into the future, Spain and Portugal emerge as compelling arenas for the evolution of venture capital and technology. These two nations are not just sunny destinations but are increasingly becoming hotbeds for innovation, entrepreneurship, and investment opportunities. Here's what to watch out for in the coming years:
🇪🇸 In Spain
Spain's Entrepreneurial Horizon:
In the dynamic realm of Spanish entrepreneurship, a surge is anticipated across diverse sectors.
Sectors like fintech, sustainable technology, and artificial intelligence are expected to be at the forefront, driven by a culture of innovation and a growing pool of skilled professionals. 💥
A transition of blockchain experts is at the forefront to start tackling transparency, traceability, decentralisation and efficiency issues in sectors like finance, health, supply chain management and media with blockchain technologies.
According to Oriol Juncosa, Managing partner at Encomenda VC:
We will see a rise in the usage of circular economy models (recycling, leasing and repairing) and automation technologies with a significant positive impact on the environment!
Government-backed initiatives like the Spain Entrepreneurial Nation strategy further underscore the commitment to innovation. 🙏
Spain's Venture Capital Outlook:
Venture capital in Spain is gearing up for substantial shifts, with strategic investments at the forefront. 💸
According to Helena Torras, Managing partner at Paocapital:
With investors getting more selective, I want to bring some optimism. The future has all the ingredients to support some of the most successful startups in the coming years and Spain has an enviable position with its growing and consolidated entrepreneurial culture and a great combination of talent, corporations, startups, funds and public support.
In addition and as mentioned previously, Spain's Startup Law, enacted a year ago, has led to a surge in seed, Series A, and Series B rounds, along with a 42% increase in overall investment by national VCs in 2023. 💰
Francisco Polo, the former high commissioner for entrepreneurship, has told Sifted that he attributed this success to the Startup Act, which provides business angels with up to 50% tax relief (capped at €100k) on their investment income. The law also aims to attract international talent by introducing a one-year visa for digital nomads and extending residence permits, aligning Spain with other European countries like Estonia and Croatia. 🌎
🇵🇹 In Portugal
Portugal’s Entrepreneurial Horizon:
Across the border in Portugal, the entrepreneurial landscape is also poised for transformation. 🔦
According to João Silva, Founder of MyCareforce, a successful health tech startup:
Portugal's commitment to fostering innovation is attracting a new wave of entrepreneurs, particularly in the health and technology sectors.
Projections suggest a 15% annual growth in the number of startups, further solidifying Portugal's emergence as a hub for innovation. 📈
Moreover, Lisbonʼs universities are fostering the next generation of entrepreneurial talent, creating an ecosystem where innovation, technology, and business intersect.
Portugal’s Venture Capital Outlook:
Venture capital in Portugal is expected to play a pivotal role in amplifying the impact of startups. 🪄
According to Pedro Ribeiro Santos, Partner at Armilar Venture Partners:
The number of local and international entrepreneurs and investors in the region is significantly increasing, a sign that the ecosystem is evolving in the right direction.
Recent data indicates a 25% rise in foreign investments in Portuguese startups, showcasing a growing confidence in the country's entrepreneurial ecosystem (OECDE).
✨ Some final comments
In summary, the future of venture capital and technology in Spain and Portugal is marked by tangible data and insights from industry leaders. The entrepreneurial landscapes in both countries are poised for growth, backed by strategic investments and a commitment to fostering innovation.
As these Iberian nations embrace the evolving narrative of tech ecosystems, they position themselves as compelling players in the global innovation landscape.
📧 As promised, our next email will continue this deep dive into the Iberian VC and startup ecosystem featuring a conversation with Alberto Gómez.
Alberto is the is a co-founder and current managing partner of Adara Ventures.
Alberto has a extensive professional background, having worked in major companies such as Telefónica, where he led the Venture Capital division of the telecommunications giant, and served as Executive Director at the investment banks Merrill Lynch and Morgan Stanley. He has also held the position of CFO at Atento Group (a subsidiary of Telefónica) and worked as an associate at Mc Kinsey & Co. and Booz, Allen & Hamilton.
Join us next week for more! ✨
Chiara, Paula, Jorge, & Justine 💛