Fundación madri+d publishes the annual investment report on its Startup Radar madri+d platform. The document offers a detailed analysis of VC investment activity, highlighting the main investment rounds, exits, sectors and main technologies that attracted investment during the year, and a comparison with other European hubs.
2024: a transformational year for startups
The investment landscape in 2024 reflects the adjustments startups have made to adapt to the conditions of a market where investment funds have not yet returned to post-pandemic numbers. The region recorded 152 investment rounds, with a slightly higher drop than the European average (-25%). In addition, investments in rounds below €15 million, key for early stage startups, halved, while no mega-rounds above €100 million, which played an important role in previous years, materialised.
In this context, many companies have adopted alternative financing models. Debt and refinancing of existing liabilities have been recurrent strategies, helping startups avoid high interest rates and protecting shareholders from dilution in an environment of falling valuations.
Despite the difficulties, Madrid-based venture capital investors managed to raise €1.2 billion in new funds, ranking the region 4th in Europe in this area. This milestone highlights the strength of local funds, which play a crucial role in financing the entrepreneurial ecosystem both regionally and nationally. In fact, 61% of national funds for startups in the rest of Spain are located in the Madrid region.
Madrid also occupies prominent positions in other key indicators:
- 5th position in Europe in number of active funds, total rounds and size of portfolios.
- 6th position in total number of companies invested, demonstrating the scope and diversification of venture capital in the region.
In terms of exits, the Madrid region reached 3rd position in Europe with a total of 4.2 billion euros. This result is strongly conditioned by the acquisition of Idealista by Cinven, valued at EUR 2.9 billion, which is positioned as one of the most important operations of the year in Europe.
Most dynamic sectors and technologies in 2024
The report also highlights the sectors that accounted for most of the investment:
Fintech, with operations such as the 45 million euros raised by Myinvestor.
Enterprise Software, with 30 million euros for Tinybird.
Health, with relevant rounds such as the 25 million from Osigu and 20 million from ifeel.
Travel, led by the 50 million euros invested in Civitatis.
Energy, with 15 million euros invested in Solar Energy.
In terms of technologies, investments focused mainly on areas such as:
Artificial Intelligence (AI).
Big Data and Machine Learning (ML).
Deeptech and hardware.
Mobile applications.
A year of challenges and opportunities
The 2024 report makes it clear that, although the volume of investment has decreased compared to previous years, the Region of Madrid maintains its relevance as a strategic European hub for startups and Venture Capital funds. The adaptability of local companies, coupled with the strength of its investment funds, has allowed the region to consolidate its position in a competitive and constantly evolving European landscape.
The Region of Madrid continues to work to strengthen its entrepreneurial ecosystem, attracting talent, fostering innovation and promoting sustainable financing in the sectors and technologies of the future.
Access the complete report at Startup Radar madri+d: https://www.madrimasd.org/sites/default/files/Startup_Radar_madri+d_investment.pdf
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