Plug & Play and EA Ventures Launch 20M VC Fund to Drive Spanish Startups and Global Spanish Entrepreneurs
Spain's startup ecosystem has grown to a total enterprise value of 100 billion, driven by the rise of climate tech and biotech industries. Although Madrid and Barcelona are still the leading drivers, new innovation hotspots such as Valencia, Málaga, and Basque Country are making waves. Valencia has made its mark in mobility tech, and the Basque Country is strong in industrial innovation.
In spite of a worldwide decline in venture capital, Spain's ecosystem raised 2.2 billion in 2023, with record levels of early-stage investments. This stability has made Spain the sixth-largest European recipient of VC funding, holding steady against other markets. While early-stage funding is booming, late-stage investments are still thin on the ground. Plug & Play's follow-on financing serves to fill this gap, holding back the "brain drain" of Spanish talent away to find capital overseas. Spain's natural position as a bridgehead into Latin America where three countries are among the top 10 destinations for Spanish VC investment only serves to highlight the need for this initiative. Plug & Play Tech Center, an international innovation platform with a high profile in Spain, has teamed up with EA Ventures, a VC fund with expertise in growth markets, to create a 20 million fund focused on investing in Spanish startups and entrepreneurs abroad. The fund, announced on March 26, 2025, amounts to around 1% of Spain's annual VC investment a small but meaningful figure for the ecosystem.
Plug & Play's Investment Model and Support System
Having been active in Spain since 2012, Plug & Play has accelerators in Valencia and Barcelona and has invested in prominent Spanish unicorns like Wallabox (electric vehicle charging) and Factorial (HR software). Plug & Play Spain was launched by Alberto Gutiérrez, Juan Luis Hortelano, and Saeed Amidi and formed part of the global growth of the organization, aiming to discover and develop top regional startups through a three month acceleration program between Sunnyvale and Valencia.
The new fund will focus on seed-stage businesses based in Spain or Spanish-born founders operating internationally, with the first investments set to range between 200,000 and 500,000, and up to 1 million follow-on financing for high growth startups. The primary sectors of interest for the fund are AI-based business solutions, fintech, sustainable development, mobility, and e-commerce.
Borja Aznar, Plug & Play Southern Europe Managing Director, underlined the dual use case of the fund: "Our faith in Spain's ecosystem is not shaken. This fund has financial backing plus strategic international contacts to enhance Spanish innovation." The project is complementary to Spain's Entrepreneurial Nation Strategy, which incentivizes private investment with tax benefits, grants, and regulatory relief, creating a favorable climate for startup development.
Outside of investment, the program provides exposure to Plug & Play's large international network of more than 600 multinationals, investors, and tech leaders. Participating startups benefit from mentorship and international growth strategies, including direct exposure to Silicon Valley by way of focused acceleration programs.
Aiming to back 30–35 high-impact startups, the fund focuses on scalable solutions with worldwide potential. The CEO of EA Group, Erik Aubakirov, added: "Spanish startups have unparalleled potential. Our expertise in scaling in emerging markets will fuel their global expansion."
Spain's Tech Ecosystem: An Emerging Global Player
The Plug & Play EA Ventures fund launch represents a turning point in Spain's development as an international tech capital. By closing funding gaps and facilitating international collaboration, the effort enhances Spain's capacity to compete on the international stage. Sustaining momentum will involve further initiatives in late-stage funding and cross-border collaboration to develop unicorns from home and keep the best talent on board.
Spain's investment environment has experienced dramatic changes since 2019, transforming from stable growth to what investors characterize as a "roller coaster" ride. Remarkably, the nation's historically conservative valuations and deal sizes have worked in its favor, protecting the market from severe volatility amid the global VC downturn. Southern Europe, Spain, and Portugal are drawing more and more investor attention as a result of their lower operating costs and valuations, with the region being a promising place for venture capital.
venture capital.
In addition, the fund points to the growing relationship between venture capital and academia in Spain. Projects like the historic partnership between UCAM and Plug & Play the first such cooperation between the U.S.-based platform and a Spanish university reflect the ecosystem's determination to foster talent and generate innovation.
In spite of a worldwide decline in venture capital, Spain's ecosystem raised 2.2 billion in 2023, with record levels of early-stage investments. This stability has made Spain the sixth-largest European recipient of VC funding, holding steady against other markets. While early-stage funding is booming, late-stage investments are still thin on the ground. Plug & Play's follow-on financing serves to fill this gap, holding back the "brain drain" of Spanish talent away to find capital overseas. Spain's natural position as a bridgehead into Latin America where three countries are among the top 10 destinations for Spanish VC investment only serves to highlight the need for this initiative. Plug & Play Tech Center, an international innovation platform with a high profile in Spain, has teamed up with EA Ventures, a VC fund with expertise in growth markets, to create a 20 million fund focused on investing in Spanish startups and entrepreneurs abroad. The fund, announced on March 26, 2025, amounts to around 1% of Spain's annual VC investment a small but meaningful figure for the ecosystem.
Plug & Play's Investment Model and Support System
Having been active in Spain since 2012, Plug & Play has accelerators in Valencia and Barcelona and has invested in prominent Spanish unicorns like Wallabox (electric vehicle charging) and Factorial (HR software). Plug & Play Spain was launched by Alberto Gutiérrez, Juan Luis Hortelano, and Saeed Amidi and formed part of the global growth of the organization, aiming to discover and develop top regional startups through a three month acceleration program between Sunnyvale and Valencia.
The new fund will focus on seed-stage businesses based in Spain or Spanish-born founders operating internationally, with the first investments set to range between 200,000 and 500,000, and up to 1 million follow-on financing for high growth startups. The primary sectors of interest for the fund are AI-based business solutions, fintech, sustainable development, mobility, and e-commerce.
Borja Aznar, Plug & Play Southern Europe Managing Director, underlined the dual use case of the fund: "Our faith in Spain's ecosystem is not shaken. This fund has financial backing plus strategic international contacts to enhance Spanish innovation." The project is complementary to Spain's Entrepreneurial Nation Strategy, which incentivizes private investment with tax benefits, grants, and regulatory relief, creating a favorable climate for startup development.
Outside of investment, the program provides exposure to Plug & Play's large international network of more than 600 multinationals, investors, and tech leaders. Participating startups benefit from mentorship and international growth strategies, including direct exposure to Silicon Valley by way of focused acceleration programs.
Aiming to back 30–35 high-impact startups, the fund focuses on scalable solutions with worldwide potential. The CEO of EA Group, Erik Aubakirov, added: "Spanish startups have unparalleled potential. Our expertise in scaling in emerging markets will fuel their global expansion."
Spain's Tech Ecosystem: An Emerging Global Player
The Plug & Play EA Ventures fund launch represents a turning point in Spain's development as an international tech capital. By closing funding gaps and facilitating international collaboration, the effort enhances Spain's capacity to compete on the international stage. Sustaining momentum will involve further initiatives in late-stage funding and cross-border collaboration to develop unicorns from home and keep the best talent on board.
Spain's investment environment has experienced dramatic changes since 2019, transforming from stable growth to what investors characterize as a "roller coaster" ride. Remarkably, the nation's historically conservative valuations and deal sizes have worked in its favor, protecting the market from severe volatility amid the global VC downturn. Southern Europe, Spain, and Portugal are drawing more and more investor attention as a result of their lower operating costs and valuations, with the region being a promising place for venture capital.
venture capital.
In addition, the fund points to the growing relationship between venture capital and academia in Spain. Projects like the historic partnership between UCAM and Plug & Play the first such cooperation between the U.S.-based platform and a Spanish university reflect the ecosystem's determination to foster talent and generate innovation.
