Tracxn, a leading global SaaS-based market intelligence platform, has released its Geo Quarterly Report: Spain Tech Q3 2024. The report, based on Tracxn’s extensive database, provides insights into the Spain Tech space.
Spanish tech startups secured total funding of $146 million in Q3 2024, a decline of 50% compared to $292 million raised in the corresponding quarter last year (Q3 2023). This is also a 65.43% fall from the $422 million raised in the previous quarter (Q2 2024).
Funding has been on a downward trend across all stages. Late-stage funding fell 45.53% to $65.2 million in Q3 2024, from $120 million raised in Q3 2023. Seed-stage investments worth $23.6 million were observed in Q3 2024, 49.66% lower than the $46.9 million raised in Q3 2023. Early-stage funding fell 54.4% to $57.1 million in the third quarter of this year, from $125 million raised in Q3 2023.
The top-performing sectors in Q3 2024 were Travel & Hospitality Tech, High Tech, and Food & Agriculture Tech. Funding into Travel & Hospitality Tech companies surged 262% to $66.1 million in Q3 2024 from $18.3 million in the corresponding quarter in 2023. The High Tech segment witnessed a 69% drop, to $36.5 million in Q3 2024 from $137.8 million in Q3 2023. Funding raised by the Food & Agriculture Tech surged 14019% to $23.1 million in Q3 2024 from $163.3K in Q3 2023.
There was a notable absence of unicorns and IPOs in the third quarter of 2024. Further, the number of acquisitions in the Spanish tech startup landscape fell to eight in Q3 2024, as against 18 and 11 in Q2 2024 and Q3 2023, respectively. GoSupply, Eos Connectivity, Incomee, Loccus, and 4GL are among the companies that were acquired in Q3 2024.
Barcelona dominated the funding landscape, accounting for 72% of the investments raised in the third quarter of 2024. Tech startups based in Barcelona raised $104.7 million in Q3 2024, followed by those headquartered in Seville ($13.3 million), Alcobendas ($6.5 million) and Madrid ($5.6 million).
Inveready, Caixa Capital Risc, and Kibo Ventures are the all-time top investors in Spain's Tech ecosystem. EIC Fund, TLcom and Sofinnova Partners were the top seed-stage investors in the ecosystem in Q3 2024, while Seaya, Cathay Innovation, and Forbion were the top early-stage investors.
Spanish tech startups are currently facing difficulties attracting investments. However, the country has one of the most active startup hubs in Europe, which will continue to evolve over time.
(Data for Q3 2024 has been taken from Jul 1, 2024 - Sep 16, 2024)
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