The entrepreneurial ecosystem in Spain is increasingly consolidated, according to South Summit and IE University
Spanish startups have exceeded 2.7 years of life.
The Spanish entrepreneurial ecosystem consolidates its maturity, according to the South Summit '2021 Entrepreneurship Map' presented this Tuesday at IE University. Spanish startups have exceeded 2.7 years of life, which shows more mature projects compared to previous years (2.2 years of average life in 2019 and 2.5 in 2020). Despite this, the average age of Spanish projects is still below that of European projects, which are 2.87 years old on average, and well below that of startups from Latin America, which register 3.23 years of life as average.
The data extracted from this eighth edition of the report ' Entrepreneurship Map 2021' by Spain Startup-South Summit confirm that the European country has a very stable percentage of serial entrepreneurs (60%), who provide great professional strength to the startup, and new stratuperos (40%), characterized by their criteria to identify market opportunities. 35% of entrepreneurs claim to have sold at least one startup and about 6 out of 10 confirm the failure of at least one of their previous projects. In either case, the probability of failure decreases with experience and learning.
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Although the entrepreneurial ecosystem strengthens day after day in Spain, it still has a pending issue to increase the presence of female talent among its ranks. The imbalance in the ecosystem due to the greater presence of men compared to women (80% vs 20%) is a reality that cuts across geography and all industrial sectors.
In this edition of the report, the presence of women in sectors such as Ecommerce, Tourism, Agrotech and Energy has increased, to the detriment of other already classics such as Fintech, where the presence of female entrepreneurs has been reduced.
The entrepreneurial ecosystem has been consolidated at a global level with very homogeneous characteristics between the different countries. There is a growing commitment to AI as an engine of opportunities and great potential for improving the Internet of things. In addition, we share the global challenge of incorporating women into the entrepreneurial ecosystem, says Salvador Aragón , professor of Innovation at IE University.
Regarding the robot portrait of the Spanish entrepreneur , it has remained stable in recent years: man (80%), with an average age of between 25 and 34 years and university studies (98%) .
In this eighth edition of the map it is confirmed that the training 'places' within the entrepreneurial ecosystem: Spanish entrepreneurs continue the trend of having a high qualification: 16% have a doctorate, maximum professional training. This profile is committed to the creation of innovative startups in key sectors, such as: Health, Agriculture, Digitization, Energy or Transportation , thanks to the application of leading technologies such as Artificial Intelligence (AI) and Machine Learning .
Where does the motivation to undertake come from?
45% of entrepreneurs assure that " I always wanted to undertake ", while for 28% the option was given because "they found a market opportunity ".
Historical maximum of own funds
If we talk about sources of financing, 62% of Spanish startups have their own funds as their first economic resource, an alternative that registers a historical maximum compared to Family, Friends and Fools (19%), private funds (15%) or public (5%). In any case, startups not only seek more financing (19%) or gain greater visibility (18%), they also claim to improve taxation as a priority need.
The great bulk of Spanish startups have already launched their own product (62%) and it is generating traction. In addition, the maturity of the ecosystem is also measured by the ability to generate job opportunities: 74% of Spanish projects already have between 2 and 10 employees, while 17% have between 10 and 50 professionals on their team. Regarding the level of income, in Spain 12.2% of startups have positive EBITDA and the forecasts are very good, given that another 37% are confident of achieving it in one year.
In addition, more and more Spanish startups can be considered a scaleup , that is, a project in its most developed phase that has already advanced in the execution of its business model, consolidating its growth in both revenue and employees. If we focus on what their situation is: 24% of scaleups already invoice more than one million euros and 60% have more than 10 employees, their preferred sector is education and AI, the most common tool with which they work.
One more year Fintech remains positioned as the 'queen' industry of the entrepreneurial ecosystem, but Agrotech and E-commerce burst into force in 2021, both sectors highly influenced by the trends that emerged as a result of the pandemic. Regarding the business model, subscription continues to grow as the preferred one by Spanish startups.