AI and computing lead the transformation of the Spanish entrepreneurial ecosystem

• This is one of the key findings from the report Analysis of a New Generation of Start-ups in Spain and Portugal, published by the DayOne Observatory, based on the analysis of 960 companies participating in the 18th edition of the EmprendeXXI Awards

• Innovation in business models is consolidating as a key differentiating factor, with entrepreneurs identifying the use of novel technology as the main driver of innovation, followed by the development of new products and the creation of innovative business models

• Access to funding remains one of the main challenges for PEXXI start-ups in their early stages, in a context marked by the youth of the projects and increased investor demands
• Start-ups expect to generate nearly 10,000 new jobs in 2025, a 48% increase compared to the previous year, although the average team size has decreased

The Spanish entrepreneurial ecosystem is moving toward greater technological specialization, with Artificial Intelligence and Computing playing a leading role. This is one of the main conclusions of the sixth edition of the report “Analysis of a New Generation of Start-ups in Spain and Portugal ” by the DayOne Observatory of start-ups , prepared by CaixaBank through DayOne, in collaboration with the Entrepreneurship Initiative Center of IESE Business School, based on the analysis of the 960 companies participating in the 18th edition of the EmprendeXXI Awards.

Alongside this trend observed among the start-ups in the latest edition of these awards, there is also a strong commitment to sustainability and a clear focus on scalable and responsible business models.

Despite the dynamism of the ecosystem and progress in technological specialization, access to funding remains one of the main challenges for the 960 participating start-ups, which are still in early stages. The average funding per company has decreased, in a context marked by the youth of the projects and increased demands from investors.

AI and digitalization: dominant technologies in entrepreneurship

74% of start-ups are focused on Artificial Intelligence and Automation (37%) and Computing and Digitalization (37%), establishing these areas as the pillars of innovative entrepreneurship among the companies participating in the latest edition of the EmprendeXXI Awards. This evolution follows the trend observed since the 14th edition in 2020, as start-ups have diversified their key technologies, with sustained growth in AI and Automation, from 9% in 2020–21 to 15% in 2023–24 and reaching 37% in 2024–25. Madrid, Catalonia and the Valencian Community lead in the number of tech start-ups.

Data from the analysis of the 960 companies participating in the 18th edition of the EmprendeXXI Awards

This growth in AI aligns with the evolution of the global market, where investment in generative AI has accumulated more than 20.7 billion dollars in venture capital over the past year.

Entrepreneurs perceive innovation in their business models as a key differentiating factor. 66% identify the use of novel technology as the main driver of innovation, followed by the development of new products (60%) and the creation of innovative business models (41%).

Funding: Lower Average Volume, but Greater Sophistication

The total funding obtained by start-ups in this edition amounted to 468 million euros, with an average of 493,000 euros per company, 14% less than in 2024 (575,000 euros). This decline is partly explained by the youth of the companies (more than 50% are less than a year old), but also by a more selective investment environment.

Funding dynamics vary significantly depending on the location of the start-ups. The Basque Country leads in terms of average total funding per start-up, registering a 28% increase. In contrast, Catalonia experienced the largest drop, reducing its average funding by 42%, from 1million euros to 635,000 euros.

Data from the analysis of the 960 companies participating in the 18th edition of the EmprendeXXI Awards

In terms of technology sectors, Artificial Intelligence and Automation lead in attracting funding, accumulating over 158 million euros. They are followed by Hardware and Electronics, with nearly 130 million euros, and Computing and Digitalization, which exceed 107 million euros.

From an investment perspective, the growing relevance of venture capital in scaling start-ups stands out, although Spain still relies heavily on public funding during early stages.

This pattern aligns with the funding data of the companies participating in the EmprendeXXI Awards, where 70% of start-ups have used personal funds for their initial development, compared to only 15% that have accessed venture capital. This reflects a structural dependence on personal or informal capital in early stages, a common phenomenon in the Spanish ecosystem.

Employment: Nearly 10,000 New Jobs Expected in 2025

The average team size has decreased, with an average of 5.6 employees compared to 6.7 the previous year. However, participating start-ups project significant growth, with 9,949 jobs expected in 2025, which would raise the average number of employees to 10 per company. This workforce expansion represents a 48% increase compared to the 6,700 jobs estimated in 2023.

Gender diversity remains a pending challenge: 26% of the entrepreneurs participating in the EmprendeXXI Awards are women, and just over 33% of start-ups have at least one female founder, a percentage like recent years. Meanwhile, start-ups founded entirely by women have slightly increased, reaching almost 13% (compared to 12% last year and 11% two years ago).

The level of experience among participating entrepreneurs continues to rise, with 58% of founders having more than 11 years of experience in the sector, compared to 51% the previous year.

Madrid and Barcelona continue to dominate the EmprendeXXI ecosystem, while other emerging hubs such as Valencia, Málaga, and Bilbao are gaining prominence thanks to local policies that promote investment in deep tech and strategic sectors.

According to the report, the most successful ecosystems focus not only on the number of start-ups created but also on their ability to become specialized sector clusters. In this regard, although there is still significant regional dispersion in terms of technologies and sectors, a nascent trend toward specialization is beginning to emerge, with notable growth in areas such as AI, computing, and healthtech.

Five priority action lines

The report identifies five priority action lines to strengthen the entrepreneurial ecosystem in Spain and Portugal. First, it proposes reinforcing access to early-stage funding through public vehicles and co-investment funds, with the goal of closing the critical gap between ideation and project scaling. This measure would allow younger start-ups to consolidate their business models and accelerate their growth.

In addition, the report highlights the need to promote technology transfer, encouraging connections between universities, research centers, and start-ups to generate spin-offs and deep tech projects. It also recommends supporting smart regional specialization, by adapting public policies to the economic and technological profile of each territory. The report further emphasizes the importance of promoting diversity and inclusion, especially in investment in women-led teams and in underrepresented regions. Finally, it proposes facilitating collaboration between start-ups and large companies to validate technology, gain commercial traction and boost internationalization.

With all this data, the 18th edition of the EmprendeXXI Awards confirms that the entrepreneurial ecosystem of Spain and Portugal, represented in the PEXXI, maintains a high level of dynamism, especially in strategic technological areas such as AI and computing.