Valencia: A Rising Tech Hub in Spain

Although Madrid and Barcelona frequently garner attention regarding tech startups within Spain, Valencia is steadily establishing itself as a burgeoning tech ecosystem.

As the nation’s third-largest city, Valencia boasts attractive beaches, consistent sunshine, and reasonably priced housing and healthcare options. Its population of approximately one million inhabitants also offers a more approachable environment compared to larger metropolitan areas.

Attracting International Talent

Valencia was recognized in the 2020 InterNations Expat City Ranking as a premier destination for expatriates. Furthermore, the city generates a substantial pool of skilled professionals, with around 25,000 bachelor’s and master’s degrees conferred annually.

To gain insights into Valencia’s startup landscape, we consulted with eight local investors, leaders, and founders. The city demonstrates particular strength in sectors including travel, AI, cybersecurity, fintech, agritech, travel tech, biotech, sports tech, and VR.

Investment and Growth

Several respondents noted that the blockchain/crypto sector could benefit from further development. The city’s investment environment, while expanding, remains relatively modest, with a primary focus on seed funding.

Increasingly, family-owned businesses, individual investors, and institutional entities are directing capital towards technology ventures. BIGBAN, a Valencia-based private nonprofit angel investor network, plays a key role.

The proliferation of incubators and accelerator programs, bolstered by corporate support and local government initiatives like Startup Valencia, further fuels this growth.

Prominent Startups

Notable companies originating from Valencia include Streamloots, Voicemod, Jeff, Beroomers, Flywire, and Blinkfire Analytics.

Expert Perspectives

Our survey included contributions from:

• Luz Adell, CFO/partner, Draper B1
• Jordi Díaz Maiquez, CEO, Play&go experience
• Helena Ortiz Gil, CMO, Techer Team
• Patricia Pastor, director, GoHub
• Fernando Marzal, VP of New Business, Jeff
• Enrique Penichet, founding partner, Draper B1
• Javier Moliner Urdiales, CEO, Howlanders
• Jorge Soriano Lázaro, CEO, Criptan

Valencia's Tech Ecosystem: Insights from Luz Adell, Draper B1

What are the dominant sectors within Valencia’s technology landscape? Which areas demonstrate the most promise, and where are the gaps? The region exhibits particular strength in the fields of financial technology (fintech), agricultural technology (agritech), and travel technology.

Notable Startups in Valencia

Several companies are making significant strides within the city’s startup community. These include Streamloots, Criptan, Voicemod, Boatjump, Zeleros, WiTraC, and Sales Layer.

The Investor Landscape in Valencia

Valencia’s investment environment is experiencing considerable expansion. A growing number of family-owned businesses, alongside individual and institutional investors, are actively deploying capital.

The city also benefits from a robust network of incubators and accelerator programs, ranking among the best in Spain. BIGBAN, a non-profit angel investor network headquartered in Valencia, is instrumental in fostering a vibrant and engaged investor community.

Remote Work and Population Shifts

The rise of remote work is anticipated to encourage both retention and influx of individuals to Valencia. The city is increasingly attractive to expatriates and digital nomads seeking a new base.

Key Players in Valencia’s Startup Ecosystem

A diverse range of organizations and individuals are driving the growth of Valencia’s startup scene. These include:

• Startup Valencia
• BIGBAN
• Lanzadera
• Plug and Play
• GoHub
• Angels Capital
• Demium
• Tbig Advisory
• KM Zero
• BioHub
• Draper B1

Future Outlook for Valencia’s Tech Scene

Over the next five years, Valencia is poised to become a major hub for companies and skilled professionals. This growth is fueled by a continuously evolving ecosystem and a strong entrepreneurial spirit.

The city is rapidly establishing itself as a compelling destination for innovation and business development.

Jordi Díaz Maiquez, CEO, Play&go experience

In what industries does Valencia’s technology sector demonstrate particular strength? What developments generate the most enthusiasm? What areas require further development? The tourism industry stands out as a key area.

Could you highlight some of the most promising startups currently operating in Valencia? Zeleros is a particularly noteworthy example.

How would you characterize the investment landscape for technology companies in Valencia? What are the primary areas of investor interest? Organizations like Demium and GoHub are actively involved, with a specific focus on deep tech ventures.

Considering the increasing prevalence of remote work, what impact do you foresee on Valencia’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new residents? It is anticipated that Valencia will retain its current population and experience an influx of new residents.

Looking ahead, what is your vision for the evolution of Valencia’s technology ecosystem over the next five years? Significant improvements and growth are expected compared to the present situation.

Helena Ortiz Gil, CMO, Techer Team

In what industries does Valencia’s technology sector demonstrate particular strength? What areas generate the most enthusiasm? What gaps currently exist? Virtual reality represents a robust and promising area. The potential of blockchain technology, however, could benefit from further development.

Could you highlight some of the most compelling startups based in Valencia? Both Techer Team and several initiatives originating from Lanzadera are particularly noteworthy.

How would you characterize the investment landscape in Valencia? What are the primary areas of investor interest? The current investment environment has room for enhancement.

Considering the increasing prevalence of remote work, do you anticipate a continued population base in Valencia, or a potential outflow? Conversely, will the city attract new residents? The majority of individuals have chosen to remain in Valencia.

Who are the pivotal figures driving the startup ecosystem in Valencia – including investors, founders, legal professionals, and designers? Key organizations include Lanzadera, Valencia Activa, Demium, and GoHub.

Looking ahead, what is your vision for the city’s technology sector over the next five years? A positive evolution and continued growth are anticipated.

Patricia Pastor, Director at GoHub

Valencia’s technological landscape demonstrates particular strength within the water management, industrial technology, and smart city sectors.

Currently, advancements in these areas are generating significant enthusiasm.

However, further development is needed to fully realize the potential of the ecosystem.

Notable Startups in Valencia

Several startups based in Valencia are demonstrating considerable innovation and promise.

These include Fivecomm, Sales Layer, Quibim, Jeff, and Voicemod.

Each company is contributing uniquely to the region’s growing tech presence.

Investment Landscape in Valencia

The investment community in Valencia, particularly through initiatives like GoHub, exhibits a strong focus on supporting B2B ventures.

Key areas of investment include Artificial Intelligence (AI), 5G technology, cybersecurity solutions, and projects centered around sustainability.

The Impact of Remote Work

The increasing prevalence of remote work is anticipated to attract a substantial influx of talent to Valencia.

It is projected that hundreds of remote workers will choose to relocate to the city.

This trend could also potentially encourage existing residents to remain within the region.

Future Outlook for Valencia’s Tech Scene

Looking ahead five years, there is a strong expectation that Valencia’s tech scene will experience significant growth and recognition.

The ambition is for the city to establish itself among the top 15 tech hubs in the country.

Fernando Marzal, VP of New Business, Jeff

In what industries does Valencia’s technology sector demonstrate particular strength? What areas generate the most enthusiasm? What gaps currently exist? The provision of everyday services represents a key area.

Could you highlight some of the most promising startups based in Valencia? Companies like Flywire, Streamloots, Voicemod, Blinkfire, and Demium are particularly noteworthy.

How would you characterize the investment landscape for technology ventures in Valencia? What are the primary areas of investor interest? Currently, the focus lies predominantly with seed investors.

Considering the increasing prevalence of remote work, do you anticipate a continued population base in Valencia, or an outflow of residents? Conversely, will the city attract new inhabitants? It is expected that individuals will remain in Valencia. The city offers a favorable work-life balance due to its climate, manageable size, and coastal proximity.

Who are the influential figures within Valencia’s startup community – encompassing investors, founders, legal professionals, and designers? The Startup Valencia Association serves as a central hub for these key individuals.

Looking ahead, what is your vision for the evolution of Valencia’s technology ecosystem over the next five years? The city is poised to become a leading startup hub within Europe.

Enrique Penichet, Founding Partner, Draper B1

What sectors demonstrate strength within Valencia’s tech ecosystem? What areas generate the most excitement, and where are the gaps?
Valencia excels in the provision of skilled tech professionals. A significant pool of individuals possess expertise in areas like AI and cybersecurity. Consequently, corporate acceleration programs are flourishing, particularly within the fintech sector, exemplified by Bankia Fintech.

The city boasts a fintech unicorn, Flywire, and has attracted Creditas, a Brazilian fintech scaleup, to establish its headquarters here. Several promising fintech startups, including Criptan, Colectual, and The Logic Value, are also experiencing growth.

Historically, Valencia has maintained a strong position in the video gaming industry. ESAT, a globally respected academy based locally, consistently delivers exceptional talent. This has fostered the success of startups like Voicemod and Streamloots within the gaming space. Notably, Valencia hosts Dreamhack, a major gaming event in both Spain and Europe.

The presence of Lanzadera, alongside Station F, positions Valencia as a hub for one of Europe’s largest accelerator programs. This environment supports the development of startups across a diverse range of verticals.

Could you highlight some of the most compelling startups in Valencia?
Flywire, Jeff, Streamloots, Voicemod, Criptan, Cronoshare, Quibim, Cuidum, and Gokoan are all noteworthy.

What characterizes the tech investment landscape in Valencia? What are the primary areas of investor focus?
The majority of investors operating in Valencia are business angels and those focused on early-stage funding. Key players include Draper B1, Angels Capital, Zriser, and Keith VC.

Considering the rise of remote work, what impact do you foresee on Valencia’s talent pool? Will individuals remain, or will there be an outflow? Conversely, will the city attract new residents?
A dual trend is currently observable. Valencia offers an attractive work environment, benefiting from its proximity to the Mediterranean Sea. Recognized by Bloomberg as the top city globally for remote work, it’s drawing in remote professionals. Simultaneously, some residents are opting to relocate to more rural settings.

Who are the pivotal figures shaping Valencia’s startup ecosystem – investors, founders, legal professionals, designers, and others?
The key drivers are the accelerators and the founders themselves.

Looking ahead, what is your vision for Valencia’s tech scene in five years?
Several Valencia-based companies have recently secured Series A funding. The expectation is that achieving Series B, C, or D rounds will become increasingly common within the next five years. Currently, Flywire stands as a primary example of a company that has reached this stage.

Javier Moliner Urdiales, CEO, Howlanders

What industries demonstrate significant strength within your technological environment? What developments generate the most enthusiasm? What areas require further development?
The e-commerce, travel, and Industry 4.0 sectors are particularly robust.

Could you identify some of the most promising startups located in your city?
Notable startups include Howlanders, Jeff, Airhopping, Landbot, and WiTraC.

How would you characterize the tech investment landscape in Valencia? What are the primary areas of investor interest?
Investment activity is largely concentrated on seed funding. There's a growing pool of experienced investors, encompassing Business Angels, smaller Venture Capital firms, and crowdfunding platforms.

Considering the increasing prevalence of remote work, what impact do you foresee on Valencia’s population? Will residents remain, or will there be an outflow? Conversely, will the city attract new inhabitants?
An influx of people is anticipated, driven by the city’s high quality of life, affordable living costs, strategic location, and supportive local government initiatives.

Who are the influential figures shaping the startup ecosystem in the city – including investors, founders, legal professionals, and designers?
Javier Megias and Juan Roig are key individuals within the Valencia startup community.

What is your vision for the city’s tech scene over the next five years?
The scene is projected to expand and become more resilient, fostering a fully integrated international community. This growth will be fueled by the arrival of new startups and remote workers, alongside increased activity from national and international VCs operating locally from Valencia.

Jorge Soriano Lázaro, CEO of Criptan

In what industries does Valencia’s technology sector demonstrate particular strength? What areas generate the most enthusiasm? What gaps currently exist? The focus lies in the realm of cryptocurrencies and their application.

Could you highlight some of the most promising startups based in Valencia? Balio is a particularly noteworthy company.

How would you characterize the investment landscape for technology ventures in Valencia? What are the primary areas of investor interest? Draper B1 represents a significant presence within the investment community.

Considering the increasing prevalence of remote work, do you anticipate a continued retention of talent within Valencia? Or will individuals relocate elsewhere? Conversely, will the city attract new residents? There is a clear trend of individuals choosing to remain in Valencia. Remote work arrangements were implemented by our company from its inception.

Who are the influential figures driving the startup ecosystem in Valencia? This includes investors from Draper B1, as well as founders Enrique Penichet and Signne.

What is your vision for the future of Valencia’s tech scene over the next five years? It is projected to become a leading hub for innovation across Europe.

Further Insights

Valencia’s growing tech ecosystem is attracting attention. Criptan, under the leadership of Jorge Soriano Lázaro, is actively involved in this development.

The city’s appeal is bolstered by its existing infrastructure and a supportive environment for startups. This is evidenced by the presence of key players like Balio and Draper B1.

• Key Strengths: Cryptocurrencies and related technologies.
• Investor Focus: Early-stage ventures with high growth potential.
• Future Outlook: A prominent European innovation center.

The continued adoption of remote work models is expected to further solidify Valencia’s position as a desirable location for tech professionals. Individuals like Enrique Penichet and Signne are instrumental in shaping this landscape.