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The Facts
-Spanish Startups raised over 104 million in the first half of 2014.
-Over 8.3 million tourists in August 2014. 52.7 million sun-seeking visitors
a year.
-Europe’s fifth largest economy GDP of 1022 Billion.
-Barcelona is the Mobile World Capital providing a scope for tech/mobile
Startups & innovation.
-Cost of living is 58% lower than London. Excellent public and private
infrastructure and state support for entrepreneurs.
-Natural European gateway to the growing Latin American economies.
-Growing sectors & innovation - sustainable energy, agriculture, smart
cities, financial and Access to top Business, Tech and Creative talent.
Why Not Spain?
Main Problems:
The language barrier (only 22% speak English).
Fragmentation
Between clusters (e.g. Barcelona and Madrid) and
between talent-pools of different skillsets.
(creatives, engineers and business folk aren’t talking).
Funding: legislation makes it hard for foreign investment.
2012 2013 2014
Number of
VC’s
348
377
377
VC Investment: 221m 208.5m 284m
# deals since 2013
Active Ventures Partners 4 Axon Deals 8Bonsai 2
Cabiedes and Parnter 17 Caixa Risk Capital 18Kibo Ventures 16Lanta Digital Venture 2Natua Capital 7Seaya Ventures 5Vitamin K 6
What we’ve foundout
International entrepreneurs in Spain
www.startupsmadeinspain.com
1. WHO IS THE ENTREPRENEUR?
-A young male first time entrepreneur from Spain
-30 years old (average of the greatest age range
respondents)- Masters in Business
- Speaks English and Spanish fluently
- Passionate about innovation
-Does not et involved in the ecosystem - does not
provide mentoring. investments, etc.
2. WHAT IS HE SELLING
-B2B Service in the mobile/telecomm sector
-focused on New markets - new product/concept/
service- To be sold outside of Spain
-Spends about a year in developing and launching an
MVP- Conservative ambition of capturing between € 1
Million - € 5 Million of the potential market share
3. TEAM
-2 local co-founders with at least one of them IT expert
- about 7 people in the team
- Very hard - finding co-founders
-Hard - finding and hiring team members - contracts and
firing- Not at the level of Managing and paying taxes
4. CULTURE AND INFORMATION
-More or less average in terms of encouragement,
social perception, fear of failure, etc.- High feedback rate - mentors are available
- High - success stories
-Barriers to entry and receptiveness of a new product is
average
5. CAPITAL
-In general public funds are easier to get than private
funds- Very little access to international investors
-Largely raising initial funds from friends and family for
launching an MVP- An average of € 50.000
-Biggest challenge - meeting the ‘right’ investor and
timeframe to getting the funds
6. LOCAL ECOSYSTEM
-Mainly in Spain for personal reasons
- Pivate sector support missing
- Infrastructure good
-Education and community support are average -
neither encourage nor discourage- Bureaucracy very hard to deal with
-Lack of communication between entrepreneurs and
policy makers
7. Barriers
-Receptiveness of a new product is average
Private sector support missing-Bureaucracy very hard to deal with
-Lack of communication between entrepreneurs and
policy makers-Very hard finding co founders
-Hard finding and hiring team members - contracts and
firing-Not at the level of managing an paying taxes.
- The local
governments
have good initiatives
for entrepreneurs but
not well
communicated
- lack of awareness
- Lack of women
entrepreneurs -
about 22% only
- Time barrier to starting a
business is improving -
creating and testing
a product and
getting feedback
- More startups fail
due to problems
between partners,
than ecosystem
issues such as
bureaucracy
- Not knowing
Spanish is
a clear barrier to
startup in Spain
-Spanish entrepreneurs
may believe they have
a higher
level of English than
what it really is
- Most startups fail and
the entrepreneurs after
their 1st failed venture
return
to the corporate world
- The investors want to see
team profile of people who
have significant
private sector work experience.
They focus more
on the people
than the idea.
They do not value the past
entrepreneurial experience
as much.
- The struggle of egos and
language difference
between entrepreneurs and
technical co-founders
is usually one of the
main problems of a startup
in Spain
- The ecosystem encourages
less merit based startup teams
and more relationship based
projects
- Lack of experience -
the entities
that do help the startups,
don’t follow up
in the long term after
the initial support - t hereby
creating ‘hollow’ life for
startups rather than
vigorous assessments and feedback
Qualitative Feedback
-The local governments have good initiatives for
entrepreneurs but not well communicated - lack of
awareness
-Lack of women entrepreneurs - about 22% only
-Time barrier to starting a business is improving - creating
and testing a product and the feedback
-More startups fail due to problems between partners, than
ecosystem issues such as bureaucracy
-Not knowing Spanish is a clear barrier to startup in Spain
-Spanish entrepreneurs may believe they have a higher level of
English than what it really is
-Most startups fail and the entrepreneurs after there1st failed
venture return to the corporate world
-The investors want to see team profile of people who have
significant private sector work experience. They focus more on
the people than the idea. They do not value the past
entrepreneurial experience as much.
-The ecosystem encourages less merit based startup teams
and more relationship based projects
-The struggle of egos and language difference between
entrepreneurs and technical co-founders is usually one of
the main problems of a startup in Spain
-Lack of experience - the entities that do help the startups,
don’t follow up in the long term after the initial support -
thereby creating ‘hollow’ life for startups rather than
vigorous assessments and feedback
The EndPlease visit: www.startupsmadeinspain.com
Follow: @SUMISpain