Already Spain’s financial center, Madrid is on the verge of becoming the country’s innovation powerhouse. According to many experts, this rapid expansion could soon make Madrid a European tech champion. And this is more than just a bold claim—economic specialists point to solid facts: “In 2023, Madrid ranked second in Europe for the number of offices opened by foreign startups. That same year, more than €605 million were raised by Madrid-based startups” These impressive numbers highlight the work the region has done in recent years to build a high-performing ecosystem capable of fostering the emergence and growth of innovative tech startups.
An Ecosystem That Attracts Innovative Companies
Over the past four years, the Madrid region has attracted over €4.3 billion in cumulative investment– significantly boosting the growth of the 1,700 startups currently operating in the area.
From Matadero to Impact Hub Madrid and Tabacalera de Lavapiés, the Spanish capital is full of spaces dedicated to culture and innovation. One standout example is La Nave, a 13,000 m² innovation hub that has, since 2017, offered coworking spaces, business support programs, conference and training rooms, and entrepreneurship programs that promote collaboration with local players.
Focus on German Startups Thriving in Madrid
These synergies are highly valued by innovative startups, making Madrid a preferred destination for expansion. Founded in 2018, the Berlin-based company Goggo Network chose Madrid as a test site for its autonomous food truck in 2021, before launching its first autonomous delivery robot in 2022. In 2019, Personio, a Munich-based HR software company, expanded internationally by opening its first office in the Spanish capital. A similar trend can be seen with Celonis, a specialist in data processing and business optimization software, which established its Madrid office just four years ago. Since then, it has grown into the company’s second-largest subsidiary worldwide, with more than 500 employees.
Support, Network, and Infrastructure
Everything is in place to support foreign companies establishing themselves in the region. In addition to tailored support from Invest in Madrid, the city’s foreign investment promotion agency, the region hosts numerous events that facilitate networking and partnerships with local stakeholders.
The Madrid Tech Show, taking place on October 29-30, is one of the most prominent, bringing together professionals from cloud computing, cybersecurity, AI, big data, data centers, and digital marketing. Other key events include the Cyber Security World, Geospatial World Forum, and MWNOs World Congress, all of which are essential for tech industry players.
Moreover, Madrid boasts near-total broadband coverage and one of the most advanced 5G networks in Europe, making it a prime destination for international startups. This is further reinforced by the rapid expansion of data centers, positioning Madrid as a critical hub for data storage and processing.
Madrid: A Unique Work-Life Balance
The city serves as a natural gateway to Latin American markets, offering strategic access for businesses looking to expand.
In addition, Madrid provides an exceptional balance between work and quality of life. With 3,000 hours of sunshine per year, a vibrant cultural scene, and a modern, efficient transport system, the city is an attractive destination both for businesses and their employees.