Startups that have managed to scale better withstand economic downturns

After the 2008 crisis, the number of new technology-based companies in Spain doubled, so much so that 75% of the companies that make up the sector today, They were founded from the year 2009.

Likewise, more than a decade later, these companies are managing to close important rounds of financing that exceed 10,000 million euros since 2018. In addition, 11 companies have already reached the unicorn category (Cabify, eDreams, Glovo, Wallbox, Idealista, Devo, Jobandtalent, Typeform, Travelperk, Wallapop and Fever), and it is expected that, by the end of 2023, the total number of Spanish unicorns will double.

But it is not the only example of ecosystem growth in a period of recession. Following the COVID-19 crisis, a further increase in the creation of technology-based companies. This has allowed the investment volume to quadruple in 2021 alone compared to 2020, close to 4,300 million euros, the best figure in the historical series.

On the other hand, only 33% of the startups analyzed have managed to scale and reach scaleup status. However, they are responsible for 85% of the jobs in the sector. Only 20% of companies founded between 2017 and 2021 has managed to climb.

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The Mapping Spain’s Tech Sector report is based on this context, prepared by Endeavor Insight with the support of Google for Startups and the collaboration of the Spanish association of Venture Capital and Private Equity, SPAINCAP (formerly ASCRI), and Adigital, the Spanish Association of Digital Economy. Its objective is to provide information on the current state of the sector, Assess your strengths and weaknesses and enable decision-makers to better understand and support local tech entrepreneurship.

Thanks to this study we can also know what are the 10 most influential companies in the technology sector of our country in recent years. This relevance is measured based on the interactions of its founders with other founders of technology-based companies in the ecosystem, in terms of mentoring, investment and creation of new startups. The first place is occupied by Tuenti, created in 2006. Its importance in the sector is due to the number of companies that its founders have supported during these years, as well as the subsequent influence of these new generation companies. Following are: OnTruck, Cabify, Consentio and, closing the top5, Akamon.

The ranking of the most influential

The Red Fridge, Glovo and Idealista are other companies that are part of the ranking of the most influential technology-based companies in Spain.

In the last 10 years, Spanish entrepreneurs have shown, not once, but twice that they are engines of economic growth. Startups support the Spanish economy by creating quality jobs, new opportunities, providing innovation and solving the major problems facing society; they did it during the recession period, they have done it during a health and economic pandemic, and I am sure that they will overcome any new challenge that comes their way”ensures Sofia BenjumeaHead of Google for Startups, EMEA.

According to the analysis carried out in the Mapping Spain’s Tech Sector, thanks to the connections between entrepreneurs, companies whose founders have received support from other technological entrepreneurs are more likely to grow successfully.

An example of this would be Cabify and Glovo. Both demonstrate the multiplier effect that a successful founder can have on the ecosystem, providing mentorship, investment and employment to people who end up creating their own company later. In the case of Cabify, about 50 technology-based companies have been founded by former employees of the company, while in the case of Glovo there are more than 30, both within our borders and beyond.

According to the study, in technology-based scaleups at least one of the founders usually has studies in STEM subject -science, technology, engineering or mathematics-, has a master’s degree or has studied Business Administration and Management.

Regarding your work experience, They usually have knowledge in business management, finance and sales. Also, many of them have been part of the management team of a scaled-up company or have directly helped found it.

On the other hand, in our country, 1 in 4 startups that have become scaleups have founders who have previously worked in technology companies.

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