Ecosystem Spotlight: 5 questions to… the Valencian Community
What makes the Valencian ecosystem unique? (e.g., industry focus, founder background, technologies, fundraising etc.) What is its biggest strength? Here are some aspects that made the Valencian ecosystem unique:
Valencia’s rise as the third-largest destination for startup investment in Spain is no coincidence.
The Valencian ecosystem stands out for its unique blend of factors. Valencia evolved from its traditional sectors to a diversity of industries, ranging from agriculture and manufacturing to cutting-edge technology sectors like artificial intelligence, software development, and cybersecurity.
Explore VC investments by industry in the Valencian Community at valenciancommunity.dealroom.co/
This diversity promotes cross-industry collaboration and innovation. The ecosystem benefits from experienced founders with strong backgrounds in technology and business, contributing to its strength. Its rich cultural heritage, tradition of trade, and entrepreneurial spirit give it a unique personality.
Valencia’s expertise in various technologies, access to funding opportunities, and a collaborative environment among entrepreneurs, investors, and supporting organizations are among its biggest strengths. This blend of tradition and innovation fosters cross-industry collaboration, unlocking exciting possibilities for entrepreneurs and investors alike. Entrepreneurs, investors, and organizations operate in a tightly knit community in Valencia.
“The differentiating factor of the Valencian startup ecosystem is its interconnectivity, its great willingness to collaborate. Entrepreneurship in Valencia is easy. València has a young and rapidly growing ecosystem of startups and venture capital, in which foreign capital and foreign players can play a key role.” – Invest in Valencia
The Valencia startup ecosystem has experienced rapid growth in recent years. What specific initiatives or programs offer to support the growth and development of startups in your local tech ecosystem? Why do you think they are successful?
In Valencia’s startup ecosystem, numerous initiatives and programs support the growth and development of startups. Invest in València serves as a crucial bridge, connecting public administration and private companies while promoting Valencia as an attractive destination for innovative startups. Invest in València actively engages with the ecosystem’s different stakeholders to position Valencia as one of the top European innovation hubs and most attractive destinations for investment. Lanzadera, Valencia Activa, VLC Tech City, Big Ban Angels, Startup Weekend València, Demium Starups, Angels Capital, Invat.tur Emprende, Skylab, and EIT Digital Valencia offer mentoring, networking opportunities, and both public and private support. Startup Valencia, over six years, has elevated Valencia into a global tech hub, notably through the internationally recognized Valencia Digital Summit, attracting talent and investors. Their upcoming project, La Terminal, promises to further foster startup growth. Distrito Digital provides government initiatives, co-working spaces, networking events like Forinvest and the Valencia Digital Summit, and valuable incubation and acceleration programs. They add further impetus by providing essential resources to burgeoning businesses. Together, these initiatives create a robust ecosystem supporting Valencia’s startups’ evolution.
What are the metrics you care most about when measuring your tech and investment ecosystem and why?
Invest in Valencia emphasizes metrics such as Startup Survival Rate, which measures the sustainability of startups over time, indicating the ecosystem’s ability to nurture successful businesses. Investment Deals signify investor activity and funding attraction, a vital aspect of ecosystem growth. Job Creation showcases the economic impact and employment opportunities generated by startups. Talent Attraction and Retention reflect the ecosystem’s competitiveness and attractiveness. Evaluating Support Programs helps optimize their effectiveness in fostering startup growth, funding, and survival.
In Distrito Digital, key metrics include Funding and Investment, illustrating investor confidence and ecosystem health, critical for local company growth. Startups Activity measures the establishment, growth, and success rate of startups, revealing the ecosystem’s vibrancy. Talent and Workforce metrics gauge the strength of human capital, vital for attracting companies and fostering innovation. Success Stories and Exits demonstrate the ecosystem’s maturity and ability to scale startups. Regulatory Environment metrics reflect the level of support and potential for startup success. Collaboration and Partnerships showcase the ecosystem’s capacity to foster innovation and attract resources through collaboration among various stakeholders. These metrics collectively provide insights into the overall well-being, competitiveness, and sustainability of the ecosystem.
Are there startups that stand out for you in terms of the innovative solutions that they’ve built?
Solutions may range from AI-powered applications, blockchain technologies, Internet of Things (IoT) devices, advanced data analytics tools, virtual reality (VR) or augmented reality (AR) applications, to sustainable and environmentally friendly solutions.
Overall, it’s worth exploring the vibrant startup ecosystem in this region because new innovative ideas and solutions are being continuously generated.
So, while highlighting specific startups is challenging, we can draw attention to some exemplary ventures generating international interest, such as
- Zeleros Hyperloop: Leading the hyperloop development, already considered as “the fifth means of transportation”.
- ClimateTrade: Carbon Offsetting solution for your business.
- Flywire: Vertical-specific technology that allows organizations to optimize the payment experience for their customers while eliminating operational challenges.
- ARTHEx Biotech: Focused on the research and development of novel oligonucleotide therapies that modulate microRNA to treat diseases with unmet medical needs.
- igenomix: A Valencia-based provider of genetic testing services for reproductive health patients and clinics.
- PLD Space: Developing launch technologies to provide commercial orbital and suborbital access services, dedicated to small payloads and small satellites.
- Voicemod, A simple online voice modifier and transformer.
- Quibim, Producer of whole body radiological image analysis based on Artificial Intelligence.
- Internxt, Designs and builds world-class applications that respect privacy.
- Sesame, Human resources software that optimises and centralises employee management processes on a single platform.
- Sales Layer, Intelligent catalog management platform that synchronizes product information across mobile, web, and social media.
- Fourvenues: Develops the app to optimise VIP areas and achieve the maximum number of customers.
What has been the most challenging part of growing the ecosystem? Is there anything that stands out in terms of obstacles that can get in the way?
The most challenging aspects of growing the ecosystem in Valencia include the limitations of a smaller domestic market for global startups, a risk-averse culture hindering entrepreneurship, and historical difficulties attracting businesses due to its peripheral location. However, recent positive changes, international projects, and investor attention have improved the situation. Challenges now involve maintaining progress, expanding internationally, and simplifying bureaucratic procedures to support startups and businesses in tapping into global markets, fostering innovation, and realizing their full potential.