Venture Capital Overview Fundraising 2,000 1,600 1,200 800 400 0 2017 2018 2019 2020 2021 2022 Fundraising € Millions Investment 2,200 1,600 1,200 800 400 0 2017 2018 2019 2020 2021 2022 Investment international VC Investment domestic private VC Investment domestic public VC € Millions Divestment 400 300 200 100 0 2017 2018 2019 2020 2021 2022 Divestment € Millions Main conclusions for 20221 Venture Capital Venture Capital investment volume in Spanish start ups in 2022 skyrocketed once again, totaling €2,124.6M,2 just barely surpassing the record set the previous year. As was the case last year, this new record is explained by the overlapping of several mega funding rounds for start ups in more advanced stages, primarily “late stage venture”3 and, to a lesser extent, for Series B/C or “other early stage”4. Rounds in excess of €10M maintained a similar level: A total of 28 start ups led rounds above €10M compared to 29 the previous year (new record). Specifically, the €10M - €15M range with €241M in 4 start ups, €25M - €50M range (€398M; 6 start ups) and rounds above €100M (€384M; 6 start ups) stood out. The investment range below €10M also grew by 4% (€809M compared to €776M in 2021), across 736 investments. Funding growth in the €1M - €5M investment range stood out with their commitment to more scalable projects with a potential for international growth. A total of 213 investments5 were recorded in this range, totaling €445M. The innovation ecosystem continues to grow: In 2022, 779 Venture Capital investments were made (breaking the previous record of 773 set in 2021) to fund 501 Spanish start ups (also a record high), 276 of which received Venture Capital funding for the first time. Private domestic Venture Capital firms keep on driving innovation in Spain. In 2022, they invested €403M in 495 transactions, a record high for both variables (for the sixth consecutive year, in terms of volume). 85% of investments were used to support companies in the earliest stages. Public Venture Capital firms once again increased their direct investment in start ups in 2022, totaling €99.6M. Their investment activity in the IT and life sciences sectors stood out in particular. The activity of international Venture Capital funds places the Spanish innovation ecosystem on another level. In 2022, these funds invested a total of €1,621.6M (second highest figure on record), maintaining the high number of investments seen in recent years (167 in 87 start ups). A total of 125 international GPs made at least one investment. Most of their investments in 2022 were in start ups in more advanced stages, reducing their exposure in companies in the earliest stages of development. The size and maturity of the numerous start ups based in Catalonia and Madrid led these Autonomous Communities to account for 46.2% and 43.3% of total investment in Spain in 2022, respectively. Venture Capital investment in terms of GDP grew reaching 0.09% and slightly surpassing the European average (0.089%)6. Record-high creation of ecosystem value. Regarding the impact of Venture Capital investment in terms of its ability to attract funding from other co-investors towards start ups, i.e. transaction value, defined as the sum of total equity invested by Venture Capital GPs (€2,124.6M) plus investments made by other co-investors7 (€1,293M) totaled €3.417M en 2022. Notes