Is the Spanish startup ecosystem gaining strength?
A few days ago the Entrepreneurship Map, the annual report corresponding to the year 2019, was published. It was prepared by Spain Startup-South Summit and, through the analysis of the 1,720 startups submitted to the Startup Competition held within the South Summit Madrid 2019, it allows us to make a fairly accurate diagnosis of the universe of entrepreneurship in Spain.
This report provides us with some data that can give us an idea about the profile of the Spanish entrepreneur and startups:
- 23% of startups are in the Growth phase and 34% in the Early Stage. Little by little, startups seem to be consolidating as a different and alternative way to large traditional companies.
- 49% of startups generate revenues and 17.1% have positive EBITDA. This means that these companies already have a validated product, have customers outside their “comfort zone” and have metrics that can make them sustainable over time.
- 51% of the startups have been financed with their own resources. Access to alternative sources of funding outside the famous FFF (friends, family and fools) seems to remain one of the pending issues for entrepreneurs. In this context from Fellow Funders we want to contribute our “grain of sand” to support the development of the ecosystem.
- 54% of entrepreneurs are serial entrepreneurs, i.e. they have already started a business before, and of these 14% have created more than 2 startups. This experience factor is very important given that the probability of failure decreases. For example, the probability of failure of an entrepreneur who has created more than 4 startups is 12% compared to the 45% probability of failure of an novel entrepreneur.
- 92% of entrepreneurs have a university degree and 74% have a master’s degree. The education of entrepreneurs is a basic aspect that sometimes, at least in Spain, we have not paid enough attention to. However, we have not yet glimpsed the concept of the entrepreneur-businessman and we have remained exclusively with the concept of the entrepreneur-visionary.
- Fifty-seven percent of entrepreneurs were previously employed, compared to 1% who were unemployed. This aspect is very interesting, it shows that the creation of startups does not have a direct correlation with self-employment, but rather with the development of an idea or business model during professional life. However, this aspect, at least in our opinion, is quite controversial and we will try to elaborate on it in the following pages.
- 63% of entrepreneurs always wanted to start a business and 61% saw an opportunity to develop their startup as opposed to 5% who did it out of necessity. It seems that in Spain there is a radical change in the concept of entrepreneurship as a “way of life” and not as a resource compared to employment.
Thanks to all the above data, we can see that something is changing in the universe of entrepreneurship in Spain. We may be witnessing a relative consolidation and greater professionalization in the world of entrepreneurship. In the words of Maria Benjumea, founder of Spain Startup-South Summit “the consolidation of the entrepreneurial ecosystem is a fact, the figures show it”.
Fellow Funders continues to support entrepreneurs and wants to give them all possible support, while respecting our canons of professionalism, rigor and transparency.
We believe that the funding search for the growth and expansion of startups is an arduous and thankless task that too often distracts the entrepreneur from his real function: the consolidation of the company. The support of specialized professionals such as those who make up the Fellow Funders team can be an interesting and profitable alternative.
Next week we will address two other very interesting aspects discussed in the Entrepreneurship Map report: Women Entrepreneurs and Senior Talent.
Have a good weekend!