A few days ago, Joaquin Cuenca (Freepik) tweeted this:

We need to start building in Europe. Drop useless misguided digital regulation. Get more aggressive VCs. We have to catch up the last 20 years and starting minting trillion euros companies

To which I replied:

Javi Santana, who also participated in the conversation, published this a few days later: “España y startups”. I think it’s a good read about the current health of the Spanish startup ecosystem: what works, what doesn’t and what should hopefully improve.

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Startup funding news 💸

MytripleA, a Madrid-based fintech specializing in alternative financing for businesses, secured €30M from BBVA Spark to drive growth and develop new products. The platform, which has funded over 4,000 companies with more than €550M, offers investment opportunities with returns of 5-8%

Universal DX, a Sevilla-based medtech startup, secured a €20M loan from the European Investment Bank (EIB) to advance its liquid biopsy solutions for early cancer detection

Flanks, a Barcelona-based wealth management platform, secured €14M in a round led by Motive Ventures, with participation from Battery Ventures and existing investors

Barcelona-based Cafler, the vehicle management platform, raised €10.5M. The investment was led by Copec WIND Ventures, Alumni Ventures AI Fund, Güil Mobility Ventures, and Plug and Play’s Supply Chain Fund

Orain, a Barcelona-based fintech company specializing in digital payment solutions for self-service machines and unattended points of sale, raised €6M in a round co-led by ourselves at Kfund and Acurio

Dealcar, a Madrid and Barcelona-based platform digitizing the used car dealership sector, raised €3M in a seed round led by Belgian fund Entourage and 4Founders Capital

LoopOS, a Portuguese startup specializing in circular economy solutions, has raised €3M to expand into Spain and France

M&A 🎉

Carlyle has completed the acquisition of a 60% stake in Seidor, a Spanish IT consultancy, for around €500M. The founders, the Benito family, retain a 40% share

French investment firm Eurazeo is in exclusive talks to acquire a majority stake in MAPAL, a Madrid-based hospitality software provider, from PSG Equity, which will retain a minority share. The deal, reportedly valuing MAPAL at €300M

Flywire, the global payments and software company born in Valencia and Boston, has acquired Sertifi, a hospitality-focused software and payments platform, for $330 million

Investor & accelerator news 🚀

IDC Ventures launched a new €150M fund-of-funds, with €33M already committed. Led by Bobby Aitkenhead and Gonzalo Hinojosa, the fund will invest in around 30 top-tier VC funds across fintech, marketplaces, and healthtech in the U.S., Latin America, and Europe. IDC has previously been active in Spain, with investments in Bipi, Byhours and Gibobs

Mouro Capital, previously known as Santander InnoVentures, appointed Diego Gálvez de Yturbe as Partner to lead its Latin American initiatives. This strategic move underscores Mouro Capital’s commitment to the LatAm fintech ecosystem

Ruben Dominguez, founder of “The VC Corner” and also a good friend of ours at Dealflow, announced that he’s leaving Mundi to join Itnig as investment and media manager

El Referente put together a map of Spain’s venture builders, and the startups they’ve launched

Spanish investors active abroad:

• Bonsai and Acurio co-led an investment in UK company PassEntry

Startup news 💡

Long interview with Joaquin Cuenca, CEO of Freepik. He emphasizes the unstoppable rise of AI and its transformative impact on the creative industry. Cuenca criticizes the EU’s regulatory approach, arguing that focusing solely on AI risks could stifle innovation. He advocates for a balanced strategy that ensures both safety and technological advancement

Company financials:

• Wallbox reported a 14% increase in revenue for 2024, reaching €163.9M. However, losses also grew by 17%, totaling €131M for the year. In response to the slowdown in the EV industry, the company reduced its workforce by 35%—approximately 300 employees—affecting mainly its acquired subsidiaries ABL in Germany and Coil in the US, as well as through voluntary departures at its Barcelona headquarters. Also last week, Wallbox announced a €9.55M investment from Iberdrola, Orilla Asset Management, and CEO Enric Asunción

• Softonic, the veteran Barcelona-based tech company specializing in software downloads, reported revenues of €28.4M in 2024, marking a 16% YoY increase

• Profile of CoverManager, the Sevilla-based restaurant booking company. The company says that it has reached €25M in ARR

• Heura, the Barcelona plant-based protein company, reported losses of €18.5M in 2023, with revenues of €21.2M. These figures pertain to its Spanish subsidiary and exclude international operations in markets like the UK, France, Germany, and Italy

GrowPro, a Spanish agency for international study and work programs, filed for bankruptcy. The company, operating in multiple countries, has ceased operations, citing declining sales due to Australian immigration changes. Many students who paid for visas and enrollments found their payments unprocessed. Affected individuals are organizing to pursue action. Growpro is a Kfund portfolio company

Spain’s gaming industry faces a deep crisis, with major studios like Tequila Works and Novarama shutting down and Ubisoft Barcelona experiencing its first-ever strike. Layoffs have hit companies like King, SocialPoint, and Codigames, while the sector struggles with market oversaturation

N26 is refining its search for a new CEO for its Spanish subsidiary, prioritizing candidates with experience in fintech startups and familiarity with Spanish market regulations. The position has been vacant since July 2024

Spain’s tax agency (Hacienda) will now track transactions on platforms like Wallapop, Vinted, and Airbnb under the EU’s DAC7 directive. Platforms must report users with over 30 transactions or €2,000 in sales annually. This includes second-hand sales, rentals, and services

Big company & policy news 🤓

Microsoft will invest €2.9B to build a new data center in Zaragoza, increasing its total investment in Aragón to €10B. The project, set to begin in 2026, will create 2,000 jobs in its initial phase and 300 more over the next decade

Tesla doubled its revenue in Spain to €541M in 2023, driven by a surge in EV sales, nearly tripling deliveries to 12,984 units. Tesla Spain’s workforce grew 58% to 238 employees

Telefónica has appointed Emilio Gayo as its new CEO, replacing Ángel Vilá. Gayo, previously head of Telefónica España, will oversee key markets and subsidiaries. Incredible headline in the FT: “Telefónica’s new chair vows to challenge US tech supremacy”. Also last week, Telefónica sold its Argentine subsidiary to Telecom Argentina, controlled by Grupo Clarín, for approximately €1.19 billion ($1.245 billion)

Interesting reads 🤓

Anna Piñol (Nfx) wrote “What It Really Takes To Make AI Agents Work“

Saleiva (Kfund, Tinybird) wrote “Kindness and LLMs”

Alberto Abel (Alibaba, Odilo) published “Creando la cultura perfecta”

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