Spain will close 2025 with a $2 billion investment in technology, 18% more than the previous year, which ended with $1.7 billion. This will make it the seventh largest European market in terms of investment volume, according to the 11th edition of the State of European Tech report produced by venture capital firm Atomico to analyse the evolution of the technology ecosystem in Europe.

Spain already has twelve unicorns, in fact, one more than in 2024, and will grow mainly in artificial intelligence and deep tech, which already account for 36% of European venture capital and reinforce its position as a regional benchmark in strategic sectors. According to Atomico, Spain attracts 5.5% of the first international investments in European Series A startups, a figure that reflects its appeal as a gateway to the Spanish-speaking market.

Resilience and growth capacity
One example highlighted by the report is vLex, a Spanish startup that combines artificial intelligence with the world's largest legal database, and with the aim of transforming legal research and practice. The British firm explains that Spain has consolidated its resilience and growth capacity in the European technology ecosystem this year. As examples, it highlights two other Spanish companies for the capital raised in their investment rounds this year. These are Multiverse Computing, with a funding round of $208 million, and Factorial, which raised $120 million.

Spain's role in southern Europe is particularly noteworthy when considering the figures in this report. Atomico, which highlights its strong technological dynamism, forecasts a combined investment of $2.9 billion, which would place this region in fifth place on the continent. Our country, with a forecast of $2 billion, clearly stands out with more than two-thirds of the total.

Greater optimism
Respondents remain as optimistic as in the previous edition when it comes to talent. 39% of founders, operators and investors who responded to the survey in Spain are more optimistic about the future of European technology than last year, 44% remain at the same level of confidence and only 18% say they are less optimistic.

Sarah Guemouri, a principal at Atomico, explained, “The talent and ambition are here. What is missing are the conditions for that potential to be translated into global leadership: simpler regulation, patient capital and public commitment. The next decade will decide whether Europe sets the course or lets others define it.’

More than double the number of active investors
This year, there are 2,850 active investors in Europe, more than double the number a decade ago. The list of unicorns has grown by 28 start-ups to reach 400. 25 of these are located in southern Europe, almost half of which are Spanish, followed by Portugal and Italy.

In terms of venture capital returns, Europe outperforms the United States over a ten-year horizon. Institutional investments are also beginning to strengthen, with the European Investment Fund, in particular, increasing its share in the south of the continent from 8% to 24% in a single year.

Photo: Atomico