Investment in Startups in the Madrid region: Third Quarter 2025

Summary

The increase in the average round size and the record-high investment in startups headquartered in the region, driven by rounds under €250M, confirm the significant revival of the startup funding ecosystem in the Madrid Region since the 2021 peak.

The average round size in the Madrid Region has risen by 260% so far in 2025 compared to 2024, increasing from €3.3M to €8.7M. International investors, involved in 30% of deals, again account for over 60% of total investment. Corporate investors have also increased their activity, contributing more than one-third of total investment. As a result of the growth in investments over recent years, the total value of Madrid’s startup ecosystem is now the highest at the national level.

Quarterly Investment Trends

With €244M, quarterly investment in startups founded or headquartered in the Madrid Region ranks 13th in the historical series. This quarter stands out due to Lingokids’ €102M round and for being the period with the highest share of investment from investors in other European countries (60%). Considering only startups headquartered in the region, the quarterly investment amount is €135M.

Quarterly Investment Trends in the Community of Madrid

Source: Plataforma de Startup Radar madri+d en Dealroom

The most notable deals of the quarter, in addition to Lingokids, are Altano (€60M) and Xoople (€22M), in the education, energy, and space/agri-food sectors, respectively.

Annual Investment Trends

In the first three quarters of 2025, startups founded in the Madrid Region or headquartered in the region have raised €1,000M, securing the top national position with over 40% of total investment. These figures are similar when considering only companies headquartered in the region, with €835M and 38% of the national total.

This total investment represents 172% of the investment in all of 2024, or 149% if considering only investments in startups headquartered in the region.

Excluding mega-rounds over €250M and pending data from the final quarter, annual investment in startups founded in the region but headquartered elsewhere ranks third in the historical series. When focusing solely on startups headquartered in the region, the third quarter of 2025 already matches the annual record highs of 2021 and 2022.

Annual Investment Trends in the Community of Madrid up to Q3 2025

Source: Plataforma de Startup Radar madri+d en Dealroom: startups con sede principal en la CM o fundadas en la CM y con sede en otro país.

Cumulative Investment Since 2021

Madrid also holds the top national position in cumulative investment since 2021, both in the number of rounds under $15M (startup), rounds between $15M and $100M (breakout), and rounds over $100M (scaleup), with €1,300M, €1,200M, and €2,300M respectively.

The growth in investment in 2025 is particularly driven by three mega-rounds over €100M (Auro Travel, Lingokids, and Job & Talent), which account for 33% of total annual investment. The increase in average round size has been accompanied by a decrease in the number of rounds in 2025 so far, which stand at 79% of the number of rounds in the same period of 2024, mainly due to fewer pre-seed rounds under €1M. As a result, the average round size in the Madrid region has increased by 260%, from €3.3M to €8.7M, compared to 2024.

This trend is similar across Spain, where pre-seed rounds have also decreased, and six mega-rounds—three of them the ones mentioned in the Madrid region —represent 37% of total annual investment.

In addition to the three mega-rounds mentioned, other notable deals in 2025 include Altano Energy and Xoople, as well as Playtomic (€60M), Xcalibur (€55M), Myinvestor (€30M), Cartagon.ai (€30M), and Libeen (€25M).

Types of Investors

In the third quarter of 2025, corporate investors stood out, including companies such as Uber, Santander, Intel, Samsung, etc., accounting for more than one-third of total investment.

Source: Plataforma de Startup Radar madri+d en Dealroom: Por tipo de inversor y por origen de los fondos

Además, en lo que va de año los inversores internacionales vuelven a representar porcentajes superiores al 60% de la inversión. En número, los inversores internacionales están presentes en el 30% de estas operaciones.

International Comparison

In international terms, year-to-date annual investment in Madrid ranks 7th in Europe, behind London, Paris, Munich, Berlin, Stockholm, and Cambridge. Madrid holds the same position when considering the total number of companies invested in year-to-date.

Investment in the First Three Quarters of 2025 in the Main European Hubs

Source: Dealroom

Ecosystem Valuation

According to Dealroom’s international Global Champions ranking, the combined enterprise value of Madrid’s tech ecosystem (€44,000M) is the highest in Spain and 14th in Europe. Considering only valuations based on the most recent funding rounds of companies headquartered in the Madrid region, the total valuation is €39,100M, with startups younger than 15 years accounting for €19,500M.

Total Valuation of Companies Headquartered in the Community of Madrid

Source: Plataforma de Startup Radar madri+d en Dealroom – Valoración

The growth in valuation since 2017 (×6.7) is the second highest in Spain, after the Valencian Community, which is valued at €5,700M (×8.6).

Sectors with the Highest Levels of Investment

The travel and transportation sectors stand out in 2025, accounting for 62% of annual investment. In the third quarter, the education, gaming, and energy sectors were particularly prominent.

Annualized Investment in the Sectors with the Highest Levels of Investment in 2025

Sectors with the Highest Levels of Investment in Q3 2025, by Quarter

Source: Plataforma de Startup Radar madri+d en Dealroom: Inversión por sectores anualizada y por trimestres

Exits

Finally, year-to-date, divestment transactions exceeding €100M total over €2,300M: Livensa Living (€1,200M), Avatel (€350M), Deeplabs (€200M), and Tess Defence (€107M). Additionally, Conversia was acquired by Arraigo NW Segundo in the third quarter.

Of this total, private equity-backed exits amount to €366M, representing 16% of the total, with notable acquisitions including Boopos and Trouva.

Value of Exits in Tech Companies in the Madrid region, Annualized