The Startup Observatory report analyzes how investment in startups has behaved in the second quarter of 2020 after the Covid-19 crisis.
From the Bankinter Innovation Foundation we present the report “Investment Trends in Spain Q2 2020”, where thanks to the data collected by the Startup Observatory, you will be able to find out how investment in startups has been reactivated in the second quarter of the year.
The data show us that despite the uncertainty caused by the Covid-19 crisis, investment in startups in Spain has not only not fallen, but has been reactivated with some peculiarities. Here are the key findings from the analysis of investment data in the second quarter of 2020:
1. Investment in startups is reactivated in the second quarter of 2020.
After the March break, there is a growing trend in investment operations, led especially by investments by venture capital funds, growing both in volume (+312.9%) and in number of operations (+55%), compared to the previous quarter.
2. The volume of investment is reduced compared to 2019.
Although in this quarter both the number of operations and the volume of investment have grown, the volume of investment falls significantly compared to the same period of 2019 (-44%). This is because in the second quarter of 2019 Glovo’s investment round of €150M took place.
3. Investment grows in the initial phases (seed and pre-seed).
The operations that have grown the most in this quarter are those focused on the initial phases (seed and pre-seed), which grew by 40.7% compared to the previous quarter and by 72.7% compared to the second quarter of 2019.
4. The volume of foreign investment decreases due to the absence of mega-rounds.
Although the number of operations in which foreign investment participates has not changed, there has been a significant drop in the volume invested. The activity of the Atomic Fund in this quarter should be highlighted.
5. Business & productivity is the sector that attracts the most investment.
During this second quarter of the year there has been a significant boom in the number of investment operations in companies classified in the Business and Productivity sector (which leads the volume invested with 13 operations with an aggregate volume of €55.8M), closely followed by eCommerce and health, sectors favored by Covid-19.
6. Although Madrid and Barcelona continue to lead the absolute volume of investment raised, the weight of the rest of the hubs has increased by more than 300% compared to 2019.
Barcelona and Madrid, although they continue to lead investment in startups in Spain, continue to lose relative weight in relation to other investment hubs.
Although this quarter’s investment activity may be due to the inertia of the operations already negotiated before the crisis caused by Covid-19, the current situation is more positive than could be expected as it shows that startup and investment activity in Spain has not come to a standstill.
You can access the full report on the Startup Observatory website by clicking here.
