Is Spain 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.

Spain 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 Spain 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 Spain

Funding is one of the most critical ingredients in building a successful startup – and Spain 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.

Spain's early-stage funding scene is dynamic, with a growing number of players supporting local founders. Notable VC firms active in early rounds include Kibo Ventures, All Iron Ventures, and Caixa Capital Risc. Government support is also significant, with programs like ENISA offering participatory loans and CDTI providing grants such as the NEOTEC program for technology-based companies. Angel networks like AEBAN connect startups with private investors. Despite positive trends like increased overall investment volume in 2024 (€3.1 billion) and a rise in the number of startups, challenges persist. There's a notable funding gap at the early and seed stages compared to later-stage investments, with investors becoming more selective and focusing on profitability and validated business models. While Spain is a leading ecosystem in Southern Europe, it still ranks lower than some other European countries in venture capital investment as a percentage of GDP, and relies heavily on international investors for growth capital. The decrease in the number of deals in 2024, particularly impacting smaller companies, highlights the increased scrutiny and effort required for entrepreneurs to raise early rounds.

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  

Spain 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.

Spain has a rapidly growing startup and innovation ecosystem, ranking among the fastest in Europe. Entrepreneurial activity is increasing, with a rise in the percentage of adults starting new businesses. The ecosystem is characterized by a multi-hub structure, with Madrid and Barcelona being major centers, alongside emerging cities like Valencia, Bilbao, Malaga, and Seville. Coworking spaces are prevalent and expanding, with Spain being the fourth country globally in terms of number and capacity. These spaces are evolving into ecosystems fostering collaboration and offering diversified services. Spain also hosts numerous tech events and conferences throughout the year, attracting entrepreneurs, investors, and industry leaders. While the ecosystem is maturing, there are programs supporting early-stage founders. Spain has over 300 incubators, accelerators, and support initiatives. Some accelerators specifically target early-stage tech startups, offering mentorship, funding, and business development support. Government initiatives and programs also provide grants, loans, and tax incentives for startups, including those in their initial phases. However, some reports indicate a lack of early-stage investors compared to the flourishing ecosystem and challenges in attracting larger investments for the growth stage. Support exists for early-stage companies, but the ecosystem also shows consolidation of later-stage ventures and larger funding rounds.

For many entrepreneurs, the energy and resources available in Spain 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 Spain, 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 Spain 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.

Spain has a growing pool of talent for startups, supported by numerous universities and business schools that produce skilled graduates, particularly in STEM fields. These institutions often have programs focused on entrepreneurship and innovation, including incubators and accelerators. The workforce is skilled in areas like technology, engineering, healthcare, AI, cybersecurity, and cloud computing. While attracting experienced talent can be a challenge, Spain is a desirable location for both local and international professionals due to its quality of life and growing ecosystem. Local talent contributes to entrepreneurial growth through a skilled workforce and participation in a thriving startup community, especially in hubs like Madrid and Barcelona. Government initiatives like the Startup Law also aim to attract and retain 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 Spain 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

Spain 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.

Spain offers a strong ecosystem for startups, supported by robust infrastructure and various initiatives. The country boasts high-quality digital infrastructure, leading the EU in very high capacity network coverage. This is complemented by a network of incubators and accelerators providing mentorship, resources, and connections. Government initiatives play a crucial role. The Startup Law offers tax incentives, simplified administration, and reduced bureaucracy. Public funding is available through programs like NEOTEC, supporting technology-based companies, and ICO loans for financing business projects. The Invest Program co-invests with private investors, and the Cervera Program funds R&D projects. These resources help startups access funding, expertise, and a favorable regulatory environment to 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 Spain. 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 Spain Be Considered the Best Place to Launch a Startup?

There’s no doubt that Spain 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 startups in Spain face several challenges. Competition exists, particularly in major hubs like Madrid and Barcelona, which have thriving ecosystems. While Spain generally offers a relatively affordable cost of living compared to other European tech centers, costs in these key cities can still be a factor. Regulatory issues and bureaucracy, including red tape and high taxes, can also pose significant hurdles for startups. Although a new Startup Law aims to address some of these issues with tax incentives and reduced bureaucracy, navigating the legal framework and ensuring compliance remains crucial. Additionally, attracting experienced talent can be a challenge.

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 Spain or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Spain 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