investors fall by 10%

Law a Startups with Nadia Calvino led to the opposite of what the government had planned. The rules went into effect in December 2022, and since then the number of transactions by these investors has decreased by 11.74%, according to the report. The Present and Future of Entrepreneurship: Trends and Challenges in the Startup Ecosystem, from OBS. In particular, the number of financing transactions startups In 2023, they were reduced by 50 operations to 376.

In addition, the amount of invested funds risk capital In Spain, it fell by 43% to 2,254 million euros. Thus, Art Launch Act could not contribute to the development of these projects.

Venture capital investment serves to measure the financing of these entrepreneurs. A launch this is a new company, in general technological base, which is at an early stage of development and seeks to offer an innovative product or service to the market. These companies usually have high growth potential and strive rapid scalability.

On the other hand, venture capital (or venture capital in English) refers to a form of financing in which investors provide funds startups and startups in exchange for participation in actions.

These investors, known as venture capitaliststhey risk investing in companies that, because of their early stage or innovative business model, may have high risk but also high profit potential.

In short, venture capital is a specific form of financing used by these early stage companies. That is, the fall of these investments directly affects startups.

Failure of the Startup Law

He Sanchez’s governmentthrough the economy portfolio, which was then headed by Nadia Calvino, published in December 2022. The law on the promotion of the ecosystem of new companiesknown as Launch Act.

“The norm positions Spain in vanguard of Europe in the development of a ecosystem an entrepreneur with an innovative vocation, as well as in the creation and movement of new companies and in attracting talent and international capital,” the executive director said at the time.

Specifically, the law required “encourage investment and attracting talent, encouraging cooperation between SMEs, large companies and new companies, promoting R&D, also in administration, and encouraging cooperation between new companies and entrepreneurs with universities and research centers. A little more than a year later results there were regulations on the contrary.

According to the OBS report, Calvino’s legislative changes suffer from several problems: “There is a consensus on the need to improve the law by focusing on support scaling, cutting red tape“, promoting innovation, technology transfer, and expanding tax incentives for investment and attracting talent.”

Scaleups is a term used to denote startups which have already passed the initial start-up stage and experienced a growth significant from the point of view income o employees. That is, among other problems Calvino’s law poses, the rule fails to count those companies when they achieve little economic growth, something OBS calls a mistake: “Advanced-stage investment has fallen by less than half.”

Provisions of the Law Startups “could expand reach and strengthen Spain’s competitiveness as an attractive ecosystem for investment and talent internationally,” the document says. “In 2023. ecosystem investment in startups in Spain has undergone significant changes. Total investment fell to €2,254 million, down 43%, with 376 transactions,” he says.

Spanish “startups” in 2023

Las startups Spanish companies have undergone some changes during 2023. Barcelona in Madrid They still attract the most investment, but other Spanish cities have begun to stand out in the national panorama. “Little by little, ecosystem Spanish shows a tendency to diversification in terms of destination investment, other cities are involved,” the OBS report said.

La Coruña, startups, law, calvinho, funding, investment
A Coruña stands out for being the third most invested city in Spain startups.

“Relative to 2023, the third and fourth place in terms of volume was taken La Coruña in Seville thanks to mega rounds how Denado o Universal DXbut well below Valencia in terms of the number of operations, which, as usual, ranked third,” the study explains.

The term megaarounds refers to large rounds of financing for startups or growing companies by raising capital through issue of shares or shares in a company. That is, La Coruña and Seville stand out because they attract these events in which investors are interested in new projects.

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