The Barcelona entrepreneurial ecosystem resists the pandemic

The pandemic and the international uncertainty it has caused have not particularly affected the city's entrepreneurial ecosystem. This is how its members see it, with 61% stating that their situation has remained stable or improved, according to the first edition of the Scanner Startups Ecosystem report, prepared by Closa Investment Bankers in collaboration with Barcelona Tech City.

After a difficult first few months, with the paralysis of funding rounds, the sector reactivated, basically benefiting from the boost that digitalization has registered with the crisis. At the state level, this has translated into an investment in startups of 2,087 million euros, 4.3% more than last year, although operations decreased by 5.8%.

Barcelona Tech City has confirmed this with more figures after interviewing more than 70 executives from startups and companies that are part of the association. The report indicates that 41% of startups increased their turnover and 21.5% remained the same during the previous year.

Likewise, temporary employment regulation files (ERTE) have not had the prominence they have registered in other sectors and only 15.5% of startups applied them. In addition, 41% of the companies consulted increased their workforce despite the crisis.

Looking ahead to this year, forecasts are also hopeful. 86% of startups expect to increase revenue; 70% to close a round, and 74.5% to hire more workers. "Entrepreneurs see the future with optimism," summarizes the president of Barcelona Tech City, Miguel Vicente.

This is demonstrated by the investment figures for the first four months of 2021, with the capture of 1,800 million euros for capital increases of Spanish startups. Of this figure, the contribution of Glovo stands out, which obtained 450 million euros, the largest round for a startup in the country.

The ecosystem is maturing

Beyond the pandemic, Vicente emphasizes that the entrepreneurial ecosystem is maturing, with factors such as the creation of larger funds and the promotion of disruptive projects, which do not imitate others. This is also demonstrated by greater participation of corporate venture capital funds.

Despite their maturity and resilience during the crisis, the president of the consulting firm Closa Investment Bankers, Josep Maria Romances, highlights pending issues such as the lack of larger operations, given the predominance of seed or Series A rounds, and the low presence of Spanish investors in these more advanced stages. On the other hand, Vicente insists on another key aspect, that of the lack of talent, which can influence the majority will of startups to hire more workers.