The era of fireworks is over. For years, the startup ecosystem operated as if it were in a perpetual festival where the most important metric was not how much business you could generate, but how much capital you had raised. We became accustomed to celebrating funding rounds as though they were the ultimate measure of success, when in reality they are merely the beginning of an obligation. That illusion, fueled by what seemed like endless liquidity, has given way to a hangover from which many still do not know how to recover.
What we are witnessing today is not an investment crisis, but rather a necessary lesson in humility—one that the data is beginning to illustrate with increasing clarity. April 2026 closed with €300.38 million invested across 26 transactions, the strongest result for that month in recent years. Yet far from signaling a broad-based market recovery, the figure reveals a more demanding reality: capital remains available, but it is increasingly concentrated in companies capable of demonstrating scale, resilience, and genuine long-term potential. Two transactions alone—Xoople and Citibox—accounted for more than 70% of the month's investment volume, confirming that the ecosystem is not shrinking but entering a more mature phase, where growing fast is no longer enough; companies must grow with purpose, efficiency, and the ability to sustain themselves over time.
Vanity metrics and business plans that promise profitability a decade from now are no longer sufficient. Today’s investors are looking for companies with solid fundamentals, revenue-generating capabilities, and a credible path to profitability. Data from the Startup Observatory of the Bankinter Innovation Foundation points in the same direction: while seed-stage funding rounds have fallen by 34%, Series A investment has increased by 48%. The message is clear: capital is no longer flowing to any idea that looks good on paper. Money is moving toward projects that have already demonstrated traction, real margins, and operational efficiency that does not depend on investors stepping in to keep them alive every six months.
This shift in the rules has caught many founders off guard—particularly those who built their companies on shaky foundations. Some startups remain trapped in valuations set at the height of the 2021 euphoria that now appear simply unrealistic. These companies face a difficult choice: accept that they are worth far less than previously claimed or risk suffocating from a lack of funding. It is the inevitable consequence of inflating the balloon beyond its limits.
Even in the sectors currently attracting the most attention, the capital filter has become significantly more demanding. Artificial intelligence is perhaps the clearest example. By 2025, Spain was already home to 394 companies linked to AI, 278 of which were startups, and the sector led all industries in investment, attracting more than €300 million across roughly thirty transactions. However, these figures should not be interpreted as an automatic endorsement of every project that includes AI in its narrative. In fact, they suggest the opposite: the market is becoming more selective. Capital continues to flow toward innovation, but only when there is a clear value proposition, a tangible use case, and a demonstrable ability to transform technology into economic value. It is no longer enough to say that a company uses artificial intelligence; founders must explain what problem it solves, why it solves it better than anyone else, and how it can scale without relying on endless cash burn.
Despite this more restrained environment, there are solid reasons for optimism. SpainCap, the association representing Spain’s private equity and venture capital industry, has projected that investment in the sector will reach €8 billion in 2026. Liquidity exists. Talent exists. But the questions being asked in boardrooms have changed forever. The focus has shifted from fame to financial soundness.
This more demanding environment is ultimately the best thing that could have happened to us. Investing today requires more rigorous analysis, but the projects that succeed are grounded in a level of authenticity we have not seen in years. The market has stopped rewarding those who make the most noise and started rewarding those who execute best. We may see fewer paper unicorns on magazine covers, but what is being built today is, at last, an unquestionable economic reality.
Miguel Ángel Rodríguez, CEO of BeHappy Investments
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The era of fireworks is over. For years, the startup ecosystem oper...
