Is Madrid a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Madrid has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Madrid gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Madrid

Funding is one of the most critical ingredients in building a successful startup – and Madrid offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Madrid's early-stage funding environment is active, supported by various players. Notable VC firms investing early include Kibo Ventures, Big Sur Ventures, and Seaya Ventures. Angel networks like the Business Angels Network madri+d also connect founders with private investors. Government support is available through programs like Madrid Emprende, offering grants and access to incubators, and national bodies like ENISA providing loans for innovative projects. The Comunidad de Madrid also offers specific aid for innovative tech companies. Despite this, challenges persist, including a reported lack of funding for startups in their very early stages, which can hinder growth. While overall investment in Spain saw a significant increase in 2024, this was largely driven by larger, later-stage rounds, with a decrease in the number of early-stage deals. Competition for funding also remains a factor in the ecosystem.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Madrid has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Madrid has a vibrant and growing startup and innovation culture, establishing itself as a key European hub. The city boasts a strong presence of coworking spaces catering to various needs, from freelancers to larger companies. Numerous tech events, meetups, workshops, and conferences, such as South Summit and those organized by communities like Startup Grind Madrid, are regularly held, fostering networking and knowledge sharing. Entrepreneurial activity is high, with Madrid hosting a significant number of startups, particularly in sectors like Fintech, Life Sciences, Tech, and AI. The ecosystem is supported by government initiatives like Madrid Emprende and Madrid Innovation, offering resources and acceleration programs. While there is support for early-stage founders through incubators, accelerators, and mentorship, recent trends indicate investors are increasingly prioritizing more mature funding rounds, posing a challenge for smaller companies seeking initial capital. However, local investors and programs still play a crucial role in the early stages.

For many entrepreneurs, the energy and resources available in Madrid can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Madrid, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Madrid is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Madrid has a strong talent pool for startups, ranking highly in Europe for developer availability. The city benefits from top educational institutions like the Polytechnic University of Madrid (UPM), Complutense University of Madrid (UCM), and Charles III University of Madrid (UC3M), which contribute significantly to the tech talent pool. Industry-specific skills are abundant, particularly in app development, mobile, server & cloud, data science, front-end, and database engineering. Madrid also shows strength in AI. Local talent supports entrepreneurial growth through a vibrant ecosystem, including numerous accelerators and incubators, and a high concentration of professionals willing to collaborate on innovative projects. The city's cosmopolitan nature also attracts diverse international talent.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Madrid can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Madrid boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Madrid offers a strong ecosystem for startups with robust infrastructure and support systems. The city provides numerous coworking spaces, incubators like Tetuan Valley and Madrid Emprende, and accelerators such as Wayra and SeedRocket, offering resources, mentorship, and networking opportunities. Government initiatives play a significant role. The Madrid City Council and the Community of Madrid offer grants, funding lines (like those co-financed by ERDF), and programs supporting innovative, technology-based companies at various stages. Initiatives like the "Bridges of Talent Program" attract international talent. There are also tax incentives for R&D and hiring. This supportive environment, coupled with access to funding networks and a skilled talent pool, helps businesses thrive.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Madrid. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Madrid Be Considered the Best Place to Launch a Startup?

There’s no doubt that Madrid provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching a startup in Madrid face several hurdles. Competition is significant in the city's thriving ecosystem, requiring startups to differentiate themselves to stand out. While the cost of living is moderate compared to some major European cities, it can still be relatively high, impacting operational costs like office rent and salaries. Regulatory issues and bureaucracy also pose challenges, with complex administrative procedures, tax regulations, and labor laws requiring careful navigation. Despite these challenges, Madrid offers a vibrant environment with access to investors and networking opportunities.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Madrid or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Madrid offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash