When founders are ready to take the plunge to expand internationally, numerous factors go under the microscope. According to a recent survey of 321 founders conducted by Start-up Heatmap Europe, access to talent is the most important. Next is ease and cost of doing business, followed by access to capital, and finally the overall entrepreneurial ecosystem and culture.
Valencia checks all of these boxes. Sprinkle in sunshine, stability, and safety - and you’ve got a pretty good recipe for success. It’s no wonder Spain’s third largest city, a talent hub for entrepreneurs and an unbeatable quality of life, is earning a well-deserved place on the European start-up map.
Historically, when founders were looking to expand, it was only the largest and most well-known cities they would consider. In Spain, that meant Madrid or Barcelona. Today, the start-up climate is changing. According to the Start-up Heatmap, there are certain cities - hidden gems if you will - quietly on the rise and definitely worth your consideration.
“Instead of endorsing Berlin or London as the biggest start-up hubs in Europe, we want to take you on a journey to find that hidden gem, the regional champion, or even the local underdog, which may become the next big thing in the European start-up landscape.”
Valencia is definitely one of these hidden gems.
With a population just under 1 million, this city has everything it needs to be a major metropolis, yet isn’t too overwhelming you can’t also easily make your mark. Even more attractive for founders, it offers a vast amount of talent, as well as an extensive support system for early-stage businesses that many other European cities lack.
- Spain's Talent Hub
Valencia is considered to be the national talent factory, thanks to eight reputable public and private universities, with more than 100,000 students and 3,500 certified engineers graduating every year. Valencia is ranked as the best Erasmus destination in Europe and has received the award as the best talent attraction program from the European Commission.
There is too much talent going to waste - as highly-qualified international students are forced to return home, and national students are often forced to go abroad - in order to find reasonable employment. Yet given the right opportunity, you have access to ripe talent at a fraction of the cost compared to other leading European cities.
- A Strong Culture of Incubators & Accelerators
The start-up community of Valencia is considered a benchmark for European best practice. Both private and public companies join forces, coordinating their efforts to boost entrepreneurial support in the region. This city is eager; it wants to become a leader in both innovation and entrepreneurship, and is ready to help with your expansion.
More than 100 new tech start-ups are created every year and over 100 international events take place, highlighting the latest in entrepreneurship, emerging technologies, and business innovation.
According to Startupxplore, the budding entrepreneurial ecosystem includes 15+ active investment funds and 24+ incubators and accelerators. The most prominent accelerators, incubators, and early-stage investors include Bankia Fintech, Angels Capital, Demium, Socialnest, Bbooster, Plug and Play (HQ in Silicon Valley), and Lanzadera, providing fertile soil for successful companies to grow. Lanzadera alone has accelerated a total of 80 companies since its launch at the end of 2013, and provided 11.2M in angel investment rounds.
On the public side, the city council of Valencia launched VIT Emprende, a network of innovative entrepreneurs that has played a role in the more than 500+ start-ups registered in the city. And numerous additional local and national institutions (ENISA, CDTI, IVACE or IVF) exist offering grants and financing to technical and digital companies. Technical expert in the growth and investment of start-ups, Mar Prieto of CEEI Castellón (European Center for Innovative Companies) says:
"There is a lot of financing available for companies wishing to expand, ranging from 25K to 1.5M, that many entrepreneurs don’t even know about."
- Growing Entrepreneurial Ecosystem
According to the Nomadlist, there are 45+ co-working spaces, not to mention numerous cafes and trendy places where entrepreneurs and digital nomads unite in this fast-growing community.
The largest start-up accelerators and incubators have been built along the harbor La Marina (including Bankia Fintech, Angels Capital and Lanzadera), on what was the home for the America’s Cup sailing teams back in 2007. Companies such as Tesla have also recently visited the area with the intention of expanding their offices.
Following in the footsteps of New York, and the innovative refurbishment of spaces such as Brooklyn's New Lab (an old shipyard turned into a community for entrepreneurs working in technology), a winning bid from Cirkuit Planet partners, with the support of Vit Emprende, will transform the old Maritime Station, a space in the harbor of 8,000 square meters, into an entrepreneurial haven.
Valencia Tech City, with enough space to house 300 businesses, numerous co-working spaces, a common networking area, a restaurant and bar, as well as services including daycare, will quickly win the attraction of top talent, expanding start-ups, and big investment.
Vicent Llorens, General Director of the Valencia Consortium, truly believes this project will “empower companies dedicated to innovation, new technologies, and entrepreneurship.”
- Lower cost of living and doing business
Valencia has a lot in common with other rising start-up hubs like Lisbon and Sofia. Technical talent is easy to find, cheap to house, and very easy to afford - which means your expansion capital will take you a lot further compared to some of the more popular start-up hubs in the north.
Nic Davis, Managing Director at Infrarisk and an Australian founder, recently moved here after securing access to accelerator Bankia Fintech. He says “the facilities are excellent,” and made special note of “the attractive cost of development talent and connectivity to other areas, like Madrid and London.”
Salaries may seem low, yet every € goes further, which means it’s possible to live quite comfortably in Valencia at a much lower cost.
Compared to cities like London, Berlin, or Madrid - where you may afford a small shared apartment with an hour commute - instead you could live in a comfortable one-bedroom studio within a 10-minute walk to work at a third of the cost (averaging 492€ a month according to top housing website, Idealista.)
Food is very reasonable, with fresh produce readily available and very affordable, and you’ll find options at local restaurants to enjoy full 3-course Mediterranean menus, including a beer or wine, for 11€.
Public transport is efficient and very cheap, and with the Manises International Airport only 20 minutes from the city center, and the capital city of Madrid only 1.5 hours with the speed train, you’re also saving in opportunity costs.
Even if you were to add the cost of accessing a co-working space (around 150€ monthly), or an office space in one of the Technological Parks this city offers (as low as 350€ for 65m2) you will still have room within a minimal budget to enjoy life outside of work.
- Superior Quality of Life
Valencia has some of Spain’s best weather, boasting more than 300 days of sun annually. Add in its beautiful beaches, orange tree-lined streets, and gorgeous views of the mountains in the distance, it’s no wonder almost 2 million unique tourists visit the city annually.
It's easy to enjoy an active lifestyle, with activities such as sailing, golf, football and tennis available all-year round. There are bike paths throughout the city, and cyclists, joggers, walkers alike love The Jardín del Turia, a lush urban park that snakes through the city like the river it used to be.
According to a recent article in the Wall Street Journal: “More well-heeled foreigners are moving to the country’s third-largest city, drawn to the sunny weather, beaches, culture and good schools.”
Beyond the inviting climate, the cultural scene is also a draw. The famous City of Arts and Sciences, one of the 12 Treasures of Spain and designed by native-son and architect Santiago Calatrava, houses Spain’s largest event space and Europe’s largest Aquarium.
So, if you're ready to expand your start-up and optimize your opportunities to tap into the over 47 million consumers within the Spanish market, look no further than Valencia when expanding to Spain.
Article by José Luis Moliner, Digital Company Expanding to Spain, SmartLabStudios. You can read the original article here
When founders are ready to take the plunge to expand internationally, numerous factors go under the microscope. According to a recent survey of 321 founders conducted by Start-up Heatmap Europe, access to talent is the most important. Next is ease and cost of doing business, followed by access to capital, and finally the overall entrepreneurial ecosystem and culture.
Valencia checks all of these boxes. Sprinkle in sunshine, stability, and safety - and you’ve got a pretty good recipe for success. It’s no wonder Spain’s third largest city, a talent hub for entrepreneurs and an unbeatable quality of life, is earning a well-deserved place on the European start-up map.
Historically, when founders were looking to expand, it was only the largest and most well-known cities they would consider. In Spain, that meant Madrid or Barcelona. Today, the start-up climate is changing. According to the Start-up Heatmap, there are certain cities - hidden gems if you will - quietly on the rise and definitely worth your consideration.
“Instead of endorsing Berlin or London as the biggest start-up hubs in Europe, we want to take you on a journey to find that hidden gem, the regional champion, or even the local underdog, which may become the next big thing in the European start-up landscape.”
Valencia is definitely one of these hidden gems.
With a population just under 1 million, this city has everything it needs to be a major metropolis, yet isn’t too overwhelming you can’t also easily make your mark. Even more attractive for founders, it offers a vast amount of talent, as well as an extensive support system for early-stage businesses that many other European cities lack.
