Spanish startups have achieved a combined enterprise value of €100 billion, driven by the climate tech and biotech sectors. While Madrid and Barcelona remain dominant hubs, Valencia, Málaga, and the Basque Country are gaining prominence. Each region has its strengths — Valencia excels in mobility tech, while the Basque Country leads in industrial innovation.
Despite a global VC downturn, Spain’s ecosystem raised €2.2 billion in 2023, with early-stage deals reaching record highs. This resilience has positioned Spain as Europe’s sixth-largest recipient of VC investment, showing remarkable stability compared to other markets.
While early-stage funding flourishes in Spain, late-stage funding remains scarce. Plug & Play’s follow-on capacity aims to bridge this gap. The fund connects Spanish founders to Plug & Play’s international hubs, helping prevent the “brain drain” of talent seeking capital abroad. This is especially important given Spain’s role as a gateway to Latin American markets, with three Latin American countries ranking among the top 10 recipients of Spanish VC investment.
Plug & Play Tech Center, a global innovation platform with a strong Spanish presence, 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, the fund aims to support Spanish startups and entrepreneurs worldwide. This initiative represents approximately 1% of Spain’s annual VC investment—a modest but strategic contribution to the ecosystem.
Behind Plug & Play: investment focus and support framework
Plug & Play has been active in Spain since 2012, operating accelerators in Valencia and Barcelona and backing Spanish unicorns such as Wallabox (EV charging) and Factorial (HR tech). Founded by Alberto Gutiérrez, Juan-Luis Hortelano, and Saeed Amidi, Plug and Play Spain emerged as part of Plug and Play Tech Center’s international expansion. The fund seeks exceptional regional startups and facilitates their growth through a three-month acceleration program split between Sunnyvale and Valencia.
The new fund will target seed-stage startups based in Spain or founded by Spanish entrepreneurs globally. Initial investments will range from €200,000 to €500,000, with follow-on funding up to €1 million for high-potential companies. The fund focuses on AI applications in enterprise solutions, fintech, sustainability, mobility, and e-commerce.
Borja Aznar, Managing Director of Plug & Play Southern Europe, said, “Our confidence in Spain’s ecosystem is unwavering. This fund combines financial support with strategic global connections to amplify Spanish innovation.” The fund’s launch complements Spain’s Entrepreneurial Nation Strategy, a government initiative supporting private investment through tax incentives, grants, and supportive regulations, creating a comprehensive environment for startup growth.
Beyond capital, the fund offers access to Plug & Play’s global network of 600+ multinational corporations, investors, and tech experts. Participants receive mentorship and scaling strategies for international expansion, including valuable exposure to Silicon Valley’s tech ecosystem through three-month acceleration programs.
The fund aims to support 30–35 disruptive technologies, prioritising ventures with scalable solutions and global ambitions. Erik Aubakirov, CEO of EA Group, concluded: “Spain’s startups have exceptional potential. Our experience in scaling across emerging markets will accelerate their international growth.”
Spain’s maturation as a tech hub
The Plug & Play–EA Ventures fund marks a crucial step in Spain’s evolution as a tech hub. Combining capital with global networks addresses funding gaps while enabling Spanish startups to compete internationally. The ecosystem’s continued growth depends on a sustained focus on late-stage funding and cross-border collaboration to nurture homegrown unicorns and retain talent.
This launch comes amid Spain’s distinctive market dynamics. Since 2019, investment patterns have shifted from stable growth to what investors call a “veritable roller coaster.” Ironically, Spain’s traditionally modest valuations and deal sizes have become advantageous, resulting in lower market volatility during the global downturn. Southern Europe, including Spain and Portugal, is gaining traction among VCs due to its lower operating costs and valuations, making it an attractive region for investment.
The fund also showcases the growing collaboration between academia and venture capital in Spain. New partnerships, including UCAM and Plug & Play’s groundbreaking alliance — the first between the US platform and a Spanish university — demonstrate the ecosystem’s commitment to developing talent and fostering innovation.
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