Factorial raises € 15 million and Itnig interviews Jordi Romero, CEO, and co-founder. This is Factorial’s third round and the highest in 2020 for a Spain-based startup. Factorial is one of Itnig’s startups, founded in late 2016. Itnig is a startup ecosystem with a coworking and investment fund for early-stage projects.
You have an early-stage project ready for success, but chances are, you need funding. Without funding, reaching success is very hard, not to say almost impossible. If you are confident enough and ready to share your project with the rest of the world… Located in Barcelona, here are Tech Investment Funds for startups you can reach out to.
Business angels, who are they? No, they’re not mythical creatures as the name suggests. They’re real-life people that provide financing for startups with their own capital, in exchange for becoming partners of the company.
Barcelona is known by many for its association with Gaudi, Picasso and many other outstanding thinkers, artists and architects. Today, when we think about Barcelona, we think about the entrepreneurial spirit going on in the city, the drive for innovation and the incredible Tech and Startup ecosystem it has to offer.
The legend states that Hercules fell in love with the area and decided to found a new city with the support of Hermes, the god of arts and trade. Together, they founded Barcinno. Across history, this small Roman Colony grew into one of Mediterranea’s strategical commerce and international trade sweet-spot.
The Ecosystem in a Few points.
How’s life in Barcelona?
Life cost in Barcelona
The Access to outstanding workspaces
Building your Startup team in Barcelona
Talent Development Programs
Hackathons and Challenges
What are the leading sectors in Barcelona?
Startup Incubators and Accelerators of Barcelona
The Investment within Barcelona’s Ecosystem
Seed Funds and Business Angels
Other venture capital of the City
Business and Tech events in Barcelona
Tech innovation in Barcelona
Build your network
This startup hub attracts talent from all around the world and is home to more than 1,300 startups. The ecosystem value has increased up to $6.4 billion dollars.
Now, you might ask yourself: ‘Why Barcelona?’
This city offers many opportunities. With an ecosystem that is under constant evolution, Barcelona makes a competitive environment and a great hub in a strategic location. It’s one of Europe’s most dynamic and engaging ecosystem, especially in industries like digital technologies, big data, and tourism.
The Ecosystem in a few key points
Barcelona is a top EU City with 5M inhabitants
‘’E-Capital of Europe in 2016’’ (EU Commission Prize)
Catalunya’s University System recognised as 3rd best in the world.
According to Mobile World Capital, Barcelona is home to 34% of Spain’s Startups, representing the World’s 3rd most attractive city for founders.
5th most important World Tech Hub (according to the Mobile World Congress)
86% of people believe that Barcelona will soon become the World’s next best Startup Ecosystem (survey of the Mobile World Congress)
The City offers the best transport and logical infrastructure of Southern Europe with an International Airport, Highly connected railway network and the harbour.
EU’s 2nd largest trade venue providing an excellent connection with Asia and Latam.
Catalunya’s capital offers an incredible lifestyle to anyone living here; between the beaches, the amazing weather and the very active social culture; Barcelona is attracting founders from all around the world and is ranking as the 3rd favourite founding site of entrepreneurs (according to Mobile World Capital). This city is the ultimate destination for talent, investments and entrepreneurship.
Here, the salaries are lower but the quality of life is higher and the cost of living is lower than the main European cities. Catalunya’s startup economy employs more than 13.500 people; making it a clear benchmark in Europe for entrepreneurship and innovation.
The Cosmopolitan blend of the city is proved by data has 26% of the employees are from abroad, and 15% of all Startup founders are international. The Ecosystem of the Metropolis is made by an incredible blend of investors, accelerators, incubators and talent.
In bullet points, we have:
In Barcelona, the sun is out more than 300 days a year!
Food, Food, Food and more food
Beautiful architecture, vibrant art and creativity.
Cosmopolitan feels and international communities
Access to plenty of sports and leisure activities
An artistic and multicultural heritage shaped from the medieval ages to modernism.
Close-by hikes in the mountains of Tibidabo, Collserola, Montserrat, Montseny
In less than 2 hours we can access awesome mountains and winter-sports stations such as Andorra, Nuria or la Masella.
Close by access to la Costa Brava, known for its paradisiac beaches
For the ones that love sailing there are many clubs in the city: Base Nautica, Club Municipal de Vela and the Reial Club de Vela.
For the ones that love surfing, the famous beaches of Castelldefels are only 20 minutes away.
In Barcelona, there are plenty of sports clubs for football, tennis, basketball, volleyball lovers etc.
You will probably find a ping pong table in every startup!
How much does life cost in Barcelona?
Life in Barcelona is much cheaper than in European power cities, comparing it to London, the first startup hub of Europe we understand that:
Rent in Barcelona is 39.21% cheaper. An average 1Bedroom apartment in Barcelona’s City Center corresponds to 949€
The Consumer Price index is 26.76% lower,
The groceries price is 23.56% lower
The Average Life Cost in Barcelona: (according to numbeo.com)
Meal in an inexpensive restaurant: 12€
Loaf of Bread: 1€
12 eggs: 1.70€
1 Kg Rice: 0.95€
One way ticket in Metro: 2.15€
(when buying a T-10, you find the price of the trip divided in two)
Based on the information given by numbeo.com; we understand that Barcelona’s cost of living is the 198th, out of 443 cities in the world.
The Access to outstanding Workspaces
In the last couple of years, Barcelona has seen immense growth in Co-working spaces; available all around the city for the creative, tech-lovers and entrepreneurs looking for great spaces where to work, get inspired and surround themselves by like-minded people.
The variety of coworking spaces in the city allows you to really find your fit.
We should start by our own: At Itnig we provide great spaces for tech companies, including high-speed internet, events room, leisure room, terrace, open spaces, chill-out areas and plenty of free beers and coffee! It is also one of the most affordable spaces across the city.
Cahoot, located in San Antoni; about 10 minutes from the city centre is a great place to work from. The Nordic-Scandinavian decor really promotes focus and clarity! If you love working in a hub with plenty of light and creative people: this is the place for you.
The Ubiqum code academy helps its students develop your skills in Web Design, Data Analytics and Machine Learning.
Luxa C/Tánger-Badajoz, Ubiqum Code Academy, WeWork, 08018 Barcelona
Leading sectors in Barcelona
The leading sectors in the city are SMART City Technologies, BioTech/Pharma and Gaming.
Smart City Technologies
SMART CITY TECHNOLOGIES bring info and data technology to the development of public services enhancing the quality of life of its inhabitants. The region of Catalunya is the home to many Smart City Startups, Barcelona is a pioneer to Smart City Technology solutions, with more than 270 Smart City companies in Catalunya, employing an average of 116.000 people, with an impactful total annual revenue of 8.2 billion $.
The major sub-sectors of Smart City present in Catalunya correspond to:
Mobility, 51 Companies in Catalunya with a turn over of $759 million
Lighting, 26 Companies in Catalunya with a turn over of $307 million
However, in Catalunya, the most important subsectors correspond to the Smart City Technological Solutions to waste management, mobility and lighting with very successful companies such as WeSmartPark, Datumize and Immfly.
Biotech and Pharma
The Biotech and Pharmaceutical industry participate in the creation and development of new drug treatments, enhancing the quality of life and providing medical cures to health problems. In Catalunya, there is an average of 100 research centres and labs. We also have access to many universities and science tech parks. (Such as PCB and the PRB)
The Biotech and Pharma industry in Catalunya has recently seen the funding of $13.8 million by AELIX THERAPEUTICS, for the development of HIV drugs and biotech solutions.
In 2017, the Life Science sectors in Catalunya were almost reaching $19 Billion; making Catalunya an outstanding leader in the clinical trials.
Ultimately, Gaming ranks third in the leading business sectors of the county. Barcelona is a major place for gaming as Catalunya is the home to more than 120 Gaming Startups, employing about 1600 people. There is a special focus on the gaming industry here, the city hosts the headquarters of Ubisoft, Gameloft, Social Point, King and many more big players.
Here, the average annual revenue for the Gaming Industry corresponds to $256 million. For the game creators, access to talent is outstanding; Barcelona is the home to many designers and creative people.
Catalunya is ranking 5th in Foreign Direct investment in Gaming. In 2015, the Catalan gaming industry represented a turnover of about $257 million, that was highly expected to escalate more than 30% by 2019.
In Catalunya, we also see a fair development of other sectors such as:
the Green Economy and Sustainability solutions that guide us towards the development of intelligent use of energy and resources.
Industry 4.0 allowing the development of our current industries by the development of technologies and it’s the incorporation
Tourism developing solutions towards more eco-friendly solutions that promote responsible management and strategically sustainable tourism.
Commerce and constant development of the economic growth of services and goods.
Startup Incubators and Accelerators of Barcelona
In Barcelona, there is immediate access to many accelerators and incubators program; helping entrepreneurs reach their goals, surround themselves by the right people and use mentoring to their advantage.
At Itnig, we build our own startups with incredible talent who joins us, but we also invest in other’s ideas and projects and support them as they grow. Entrepreneurs starting their projects and looking for money and support, can apply to our fund.
There are other great accelerators and incubators in the city; here is the list of Barcelona’s Startup Accelerators and Incubators:
Conetor has been working with entrepreneurs for the past 5 years, they are focused on the development of startups from the seed funding stage. The representant of Conector is successful entrepreneurs with a wide portfolio of contact in any industry.
We have interviewed Carlos Blanco, one of the mentors of Conector; for our podcast Startup Inside Stories: take a look here.
GameBCN is an incubation program focused on the gaming industry, offering the necessary mentoring and training to entrepreneurs to help them develop their production pipeline and allow them to be successful in the gaming industry.
Nuclio is a Venture Builder developing and building startups from business ideas to a real company. For more information about this venture builder and about the founder Carlos Blanco: you can take a look at our podcast.
Startup Bootcamp is proposing an intensive 3-months acceleration program in Barcelona focused on the IoT and Data.
The Investment within Barcelona’s Ecosystem
The city of Barcelona is ranked fifth in Europe’s Capital Investment; behind London, Paris, Berlin and Stockholm raising €872 million euros in 2018. As an entrepreneur in Barcelona, you have access to many investors and venture capitals.
Catalunya is Spain’s most attractive region for investment.
Today, Barcelona encompasses more than 65% of Spain’s total start-up investment.
According to startupheatmap.com, we understand that in 2018, the investment in the city’s startups corresponded to 0.88 Billion Euros, and had a YoY growth of 546%. We can also note that the Business exits in 2018, correspond to 0.59€ Billion making the city rank as the 5th most popular in the world; striking nearly three times more deals than the Spanish capital.
The venture exists-IPOs of the city have timed by 4 in the last four years
Most Invested Sectors:
Home with €475 million
Mobility and Transport with €328 million
Travel with €279 million
Enterprises Softwares with €192 million
Most invested business models:
Marketplace with €875 million
E-Commerce with €602 million
Mobile Apps with €597 million
SAAS with €290 million
Seed Funds and Business Angels
Fortunately, the last years Barcelona has developed a mafia of business angels and seed funds that support startups and their teams in their initial steps. Here’s the list:
Lanai Partners not investors but a group of partners-entrepreneurs, investing in future winning teams and entrepreneurs. The main partners of Lanai Partners are Jeroen Merchiers, Ruben Ferreiro, Guillermo Llibre and Mar Alarcon. Investing up to €200k per startups in various rounds.
To find specific information about the Business Angels of Barcelona: click here
Venture Capital funds in the city
In Barcelona, you can access various venture funds depending on your industry and your needs. We specifically took the funds who actively invested in the last 15 months, in order to provide you with the most up to date info!
Barcelona has the grace of allowing the development of professional teams with its social culture and its impressive talent pool.
We all know how hard is to find awesome tech people. In Barcelona, most will gather in the afterwork events in Poblenou [email protected] neighbourhood, filled with an interesting mix of tech studios, lots of startups, old looking factories, designer ateliers and hidden antique shops interacting surprisingly well together.
These events have a huge positive impact on the city attracting investments, startups and corporations from all around the world. It’s also a source of inspiration and gives entrepreneurs a wider vision of what’s going on around them.
Barcelona’s events push the case of the Catalan’s ecosystem and it’s growth; making it an incredible opportunity and benefits provider for entrepreneurs.
According to Business Insider, the Catalan city is ranked 4th in the top tech and innovation hubs in Europe behind London, Berlin, and Paris.
It is the home to Barcelona Tech city, many accelerators and incubators in mobile and tech; such as the StartupBootcamp global startup accelerator and corporate innovator known as the leading accelerator in everything data related. It is also the host of Seed rocket, funding startups in technology and Conector, famous 6 months program in digital tech projects.
Speaking of Barcelona Tech City, it is a private non-profit membership association represented by Miguel Vicente as Chairman and Miguel Marti as CEO. This promising association represents among the Spaniards, the tech and digital ecosystem. It’s shaped by a blend of startups, accelerators, incubators and large companies such as The SEAT Group and VC firms like ANTAI.
The mission of the hub is to position Barcelona as one of the principal International Technological Hubs in the world.
So far, this project represents more than 800 companies, has more than 650 members and covers over 400 fields of activity. It has for objective to promote Barcelona’s tech and innovation attracting international talent and collaborating with other organisations in order to promote growth in the ecosystem. (Find out more)
Implemented by SciTech DiploHub, a pioneering nonprofit public-private partnership backed by Barcelona’s leading startups, corporations, universities, research centers, non-profits, and public institutions, the organization is in charge of designing and executing the city’s innovation ecosystem’s international strategy; empowering the global community of talent educated in Barcelona, the Barcelona Alumni network; bringing together diplomatic missions and the local innovation scene to enhance collaborative projects; and delivering policy advice, working as a think tank where the power of technology and scientific expertise is harnessed insupport of evidence-based policy and training the next cohort of global leaders in science and technology diplomacy.
This unique initiative is led by SciTech DiploHub’s CEO, Alexis Roig, a globally-based serial entrepreneur currently serving as the de facto Barcelona’s Ambassador for Science and Technology with the mandate to represent the city’s innovation ecosystem worldwide, thus making Barcelona a more influential player on the global stage.
Build your Network
At Itnig we organize regular events for tech-heads, entrepreneurs and startups to try to give tools and resources for dooers.
Attending our events, you can build your network and surround yourself with like-minded people. Who knows, you might meet your ideal co-founder?