All-time high in volume invested by Venture Capital funds in Spanish start ups for the fifth consecutive year, thanks to the higher rounds staged by late stage venture start ups. The investment activity of Venture Capital funds in Spanish companies in 2022 totaled €2,124.6M, slightly surpassing the volume recorded in 2021 (€2,108M). This new record high was supported by the activity of 88 domestic GPs and 125 international GPs. The Spanish entrepreneurial ecosystem consolidated its leading position thanks to increasingly strong foundations, both on the supply (funds) and demand side (start-ups), as demonstrated by having reached record-high Venture Capital investment in a new context marked by uncertainty, greater selectivity in investment decisions and complex macroeconomic variables that led to the forecasting of more restrained annual investment performance. However, the current threats (impact of geopolitical tensions, high interest rates, adjustment of valuations, etc.) remain, which could temporarily affect performance of the innovation ecosystem, as was the case in the rest of Europe in 20228, although there is also abundant liquidity (both in domestic and international funds) that will ensure their continuance. Undoubtedly, investment volumes are highly sensitive to large funding rounds, which explains the positive performance of Venture Capital activity in 2022. Specifically, 28 Spanish start ups received funding in excess of €10M (one less than in 2021), attracting €1,315.8M (62% of total investment). Of these 28 start ups, 6 led rounds of more than €100M (4 in 2021), and among them, the round carried out by Advent International in Seedtag stood out, both for being the largest round in 2022 as well as for being led by a large international Private Equity fund. All these large funding rounds were led by international Venture Capital funds, as is becoming the norm in the Spanish market, as they have abundant liquidity, and a domestic fund participated in a single large funding round, contributing just over €10M. The figures show how the Spanish technological ecosystem is positioning itself as one of the top targets for international GPs thanks to the opportunities it offers in terms of talent; innovative, scalable projects; and global scope within a regulatory framework that is increasingly suitable for implementing these kinds of projects. As a sign of the attractiveness of the Spanish market, 125 international GPs made at least one Venture Capital investment in Spain, three more than in 2021. In 2022, investments by these funds totaled €1,621.6M (-3% from 2021). This volume was distributed across 167 investments in 87 companies.9 A majority of these investments (74) were made in late stage ventures. Funding increased for somewhat less mature start ups (series B) or “other early stage,” with 60 investments (+13%). On the other hand, there was a 71% drop in the startup stage10, with 24 investments, whereas investment activity was maintained in seed capital11, with 9 investments. As at the end of 2022, 266 of the 379 international entities with Spanish portfolio companies were Venture Capital firms. At the national level, the sector has 126 firms investing in Venture Capital12, 20 of which are public. Domestic Venture Capital GPs continue to provide stability to the ecosystem, reaching another new record high in investment. Despite global economic uncertainty, domestic Venture Capital firms are managing to attract significant resources for the new funds launch, which are complemented by the increased activity of public Venture Capital firms. For the seventh consecutive year, domestic firms surpassed the amount invested in the previous year, reaching €503M (€437.9M in 2021). This volume was distributed across 612 investments (+4% compared to 2021), with a clear focus on smaller rounds: 74% of these investments were below one million euros (3 p.p. less than in 2021). Read more Notes Venture capital activity in 2022