Spanish startups are gaining serious momentum. Despite a global slowdown in venture capital, early-stage investments in Spain surged in 2023, helping the country raise €2.2 billion in total VC funding. Now, Plug and Play Tech Center and EA Ventures are stepping up with a new €20 million fund to support Spanish-founded startups both at home and abroad.
The fund, unveiled on March 26, 2025, will target seed-stage companies either based in Spain or founded by Spanish entrepreneurs globally. Initial investments will range from €200,000 to €500,000, with follow-on checks of up to €1 million for high-performing startups. Focus areas include AI-powered enterprise tools, fintech, sustainable innovation, mobility tech, and e-commerce solutions.
Spain’s Growing Startup Momentum
Spanish startups have collectively reached a combined valuation of €100 billion, driven in part by booming sectors like climate tech and biotech. While Madrid and Barcelona continue to lead the charge, cities like Valencia, Málaga, and regions such as the Basque Country are rapidly rising. Each brings unique strengths: Valencia shines in mobility innovation, while the Basque Country is known for its industrial tech leadership.
Despite global VC uncertainty, Spain’s ecosystem has proven resilient. It now ranks as the sixth-largest recipient of venture capital in Europe. However, late-stage funding remains a challenge. That’s where Plug and Play’s follow-on capacity comes in—to prevent the “brain drain” of top founders looking abroad for growth capital and keep talent anchored in Spain.
Bridging Gaps with Global Access
Plug and Play, founded by Saeed Amidi and active in Spain since 2012, has been instrumental in launching local unicorns like Wallabox and Factorial. With accelerators in Valencia and Barcelona, the platform already has deep ties to the local scene. The new fund, developed in partnership with EA Ventures—known for backing companies across emerging markets—adds fresh capital and a global network into the mix.
This initiative also syncs with Spain’s Entrepreneurial Nation Strategy, which promotes innovation through tax breaks, grants, and startup-friendly policies. According to Borja Aznar, Managing Director of Plug and Play Southern Europe, the fund isn’t just about money. “It’s about offering startups the global access, mentorship, and scaling support they need to succeed internationally,” he said.
Accelerating 30+ High-Growth Startups
Plug and Play’s three-month hybrid acceleration program, split between Silicon Valley and Valencia, will serve as a launchpad for selected companies. Startups will gain exposure to over 600 corporate partners, investors, and global tech leaders within Plug and Play’s international network.
The fund aims to support 30–35 early-stage ventures with scalable solutions and international ambition. EA Ventures CEO Erik Aubakirov emphasized their goal: “Spanish startups are poised for global impact. Our experience scaling across emerging markets will help them go further, faster.”
Southern Europe’s Rising Appeal to VCs
Spain’s lower operating costs and modest startup valuations, once seen as drawbacks, are now assets. As global markets fluctuate, Spain’s VC scene has maintained relative stability. This “slow and steady” dynamic is increasingly attractive to investors looking for long-term growth. Southern Europe—especially Spain and Portugal—is now a hotspot for smart capital seeking less volatility and more value.
Academia and VC Join Forces
This fund also reflects a broader shift in Spain’s startup landscape: stronger collaboration between universities and the venture ecosystem. The recent partnership between UCAM (Universidad Católica San Antonio de Murcia) and Plug and Play marks the first-ever alliance between the U.S. platform and a Spanish university. These types of partnerships are helping to develop local talent, boost innovation, and build a stronger tech pipeline.
Looking Ahead
The Plug and Play–EA Ventures fund represents a strategic move to strengthen Spain’s innovation ecosystem from the ground up. With a mix of capital, mentorship, and global visibility, the initiative hopes to close funding gaps, support new unicorns, and help Spain’s best ideas scale globally. As late-stage capital becomes the next frontier, efforts like this will be key to making Spain a lasting force in global tech.
