According to the 2026 Spanish Tech Ecosystem report, approximately 37.5% of startups founded each year secure funding. In other words, nearly six out of ten startups in Spain fail to attract investors and must turn to other avenues, such as personal savings, bank loans, or public funding.

While securing funding can be challenging, it becomes much easier if you understand the financial aid ecosystem in Spain and know exactly which financial instrument is best suited to your startup.

In this article, we explain how to attract investors for your startup and analyze the main options available in Spain to facilitate its launch, consolidation, and growth.

Key takeaways

• Securing private funding during a startup’s early stages tends to be more difficult due to the risk involved for potential investors.
  
• In Spain, there are various types of startup funding, such as equity loans from entities like Enisa and grants from public agencies.
  
• Equity loans are a far more attractive option for startups than traditional bank financing because the interest rates on equity loans vary according to business performance.
  
• The Startup Law regulates various financing mechanisms, such as reducing the guarantees required for public aid and implementing phased payments in public procurement of innovation (PPI) contracts.
  

Main funding avenues for startups in Spain

In Spain, startup founders have various financial instruments at their disposal to cover formation or expansion costs. For example, according to the 2025–2026 Global Entrepreneurship Monitor (GEM) Spain Report, 12% of the initial capital for businesses created by entrepreneurs comes from banks or financial institutions, while 2% comes from private investors. Let’s look at the most common financing mechanisms for a startup:

Self-financing

Self-financing, or bootstrapping, a startup means covering expenses using the founders’ personal savings and the revenue generated by the company. Although self-financing is often a limited resource, it’s one that’s commonly used during the early stages of a startup, when accessing other types of financing is not yet feasible.

Unlike other funding methods, self-funding allows founders to retain full control over the startup without having to report to third parties. Furthermore, if self-financing yields positive results, it becomes easier to attract future investors, who look favorably on the founders’ commitment and the project’s potential.

Family financing

When self-financing isn’t enough, another way to raise capital for a startup is to turn to family members or even friends. However, relying on family and friends for funding can strain personal relationships if the outcome is negative, as financial losses often create tension.

Crowdfunding

Equity crowdfunding platforms allow startups to secure collective funding from multiple investors. This funding avenue has been key to the success of some Spanish startups, such as Heura.

One of the leading startup crowdfunding platforms is Crowdcube, which has an agreement with Stripe to provide benefits—such as payment processing credits for Stripe Payments—to certain funded startups. Per the 2025–2026 GEM Spain Report, 1% of companies’ initial capital comes from crowdfunding.

Bank loans and ICO lines of credit

In the early stages, it’s often very difficult for a startup to secure bank financing, especially if the founder lacks collateral or guarantees. Nonetheless, bank financing is more common than one might expect: according to the 2025–2026 GEM Spain Report, 12% of the initial capital for new businesses comes from banks or financial institutions, and this share increases as the company establishes a steady revenue stream.

Part of this financing is channeled through lines of credit from the Official Credit Institute (ICO). The ICO’s financing mechanism is distinctive because the institute itself does not lend directly to the venture; instead, the funding is requested from and issued by a partner bank, which assesses the risk according to its own criteria and decides whether to grant the loan. The ICO Companies and Entrepreneurs line covers investments, fixed assets, and liquidity needs, with terms ranging from one to six years and a principal grace period of up to one year.

Public guarantees for accessing credit

When the obstacle to obtaining bank financing is not the project’s viability but rather a lack of collateral, mutual guarantee societies (SGRs) can be a good solution. These nonprofit entities, supervised by the Bank of Spain, provide guarantees to banks on behalf of small and medium-sized enterprises (SMEs) and startups. Although they do not grant loans directly, they fully or partially guarantee the transactions, providing financial institutions with additional coverage.

In this way, a startup can access financing that a bank would not grant without a guarantee, reduce the required collateral, or improve the terms and interest rate.

To apply for these public guarantees, you must become a participating member of the relevant SGR and cover the cost of the guarantee. You can locate the society for your autonomous community through the Spanish Confederation of Mutual Guarantee Societies (CESGAR), which brings together Spain’s SGRs.

It’s important to remember that, although this is a public guarantee, it does not turn the loan into a grant: if the company fails to repay the amount due and the SGR is held liable by the bank, the SGR will then seek reimbursement of the amount paid from the company.

Grants

In Spain, there are numerous grants for startups, catering to both their initial and growth phases. For example, the Andalusian Digital Agency’s Misión program not only fosters business creation and acceleration in the region through grants to start a business in Andalusia, but it also awards grants to fund startups in the fields of smart mobility, port logistics, agricultural technology, and video games.

We recommend using Plataforma PYME’s search tool for public aid and incentives to easily find the grants most relevant to your situation.

Accelerators

Unlike incubators, which typically do not offer direct funding, accelerators commonly provide capital to fast-track the early stages of startups. Furthermore, startups become part of a network of entrepreneurs and mentors that’s highly beneficial for their medium- and long-term growth.

Spain has more than 300 accelerators, incubators, and support programs for startups.

Private investors

Private investors operating in a professional and specialized manner inject capital into startups. In many cases, their contribution is not solely financial; it also involves providing highly valuable contacts and advice. These are the main types of private investors and their characteristics:

• Business angels: These individuals, also known as angel investors, typically invest in the early stages of startups, which are the ones that carry the highest risk. According to data from the 2025 Business Angels Report, 55% of investors surveyed had from three to eight years of investment experience. Furthermore, their contributions often extend beyond capital: 44% have provided strategic advice, and 29% have helped facilitate connections with customers, suppliers, and new markets.
  
• Venture capital: These are funds that finance startups in exchange for equity stakes they expect to sell in the future at a much higher price. According to SpainCap, domestic private venture capital firms invested €368 million across 390 investments in 2024. Three out of four investments were below €1 million, and 85% were directed toward early-stage companies.
  
• Corporate venture capital: Large companies often invest in startups to gain access to their emerging technologies and generate financial returns. A study by the European Commission’s Joint Research Centre found that 62% of the 2,500 large R&D-focused companies analyzed had invested in startups or scaleups at least once between 2000 and 2020. Investment amounts vary considerably; one of Spain’s most prominent examples, Wayra, Telefónica’s corporate venture capital unit, currently publishes an investment range of €150,000 to €5 million for seed- and growth-stage startups.
  
• Family offices: These are structures dedicated to managing and investing the wealth of one or more families; they can invest directly in companies or indirectly through investment funds. Family offices play a significant role in Spain’s entrepreneurial ecosystem—according to PwC Spain, on average, one in four Spanish startups is financed through a family office.
  

Public funding

The General State Administration and the autonomous communities, in collaboration with various public entities, provide funding to startups to foster innovation and generate skilled employment. Founders are generally required to cofinance projects, either through their own contributions or through the participation of private entities.

Main public funding channels for startups in Spain

In Spain, new funding opportunities are constantly being announced, providing invaluable support for founders to develop their professional projects. Here’s a summary of the top European, national, and regional funding options so you can apply for the ones that best suit your needs:

European financing instruments

European Tech Champions Initiative

The European Tech Champions Initiative (ETCI) is a joint fund involving the European Investment Bank (EIB) and the governments of certain countries, including Spain, which contributed more than 26% of the ETCI’s initial capital through the Fond-ICO Next Tech fund.

The contributions are allocated to venture capital funds of at least €1 billion; thanks to this financial injection, these funds can launch large financing rounds for scaleups (i.e., companies with at least 10 employees that have recorded minimum growth of 20% in headcount or revenue over three consecutive years).

Impact Shakers Ventures I

COFIDES is a Spanish public entity that injects capital into the European fund Impact Shakers Ventures I, which subsequently acquires stakes in startups to finance them. This is early-stage funding for startups, designed to meet their financial needs during the preseed and seed stages.

National financing instruments

Enisa equity loans

This public entity—which operates under the Ministry of Industry and Tourism—offers financing for entrepreneurial projects to fund the creation of startups and SMEs, with no age requirements. The minimum amount for Enisa loans is €25,000, while the maximum amount is €1.5 million; however, to qualify, the company’s equity must be at least equal to the amount requested.

Regardless of the loan amount received, interest rates vary based on the company’s financial performance. Furthermore, unlike other solutions, Enisa’s equity loans do not require additional collateral. In 2025, Enisa awarded €65.3 million to startups and innovative SMEs.

Innvierte program

The Center for Technological Development and Innovation (CDTI), through the Innvierte program, acts as a venture capital fund—that is, it injects capital into startups in collaboration with other entities. This coinvestment is always carried out with venture capital entities that are registered with the National Securities Market Commission (CNMV).

Unlike other funding programs focused on specific phases of startup development, Innvierte is designed to cover expenses across all stages of a startup's growth.

Next Tech

In 2021, Fond-ICO Next Tech was created to allocate a portion of its investments to startups in the technology sector. Currently, its primary activity consists of making financial contributions to various venture capital funds.

Regional financing instruments

Aragon: SODIAR’s equity loans

If a portion of a startup’s share capital is held by the Society for the Industrial Development of Aragon (SODIAR), that entity can provide access to equity loans of up to 10% of its available funds. SODIAR’s equity loans consist of two interest components:

• Fixed interest: 2% + 12-month Euro Interbank Offered Rate, or Euribor (2.855% in July 2026).
  
• Variable interest: A maximum of 8%, varying based on factors such as the startup’s performance.
  

Cantabria: Start Up Capital Cantabria program

The Society for the Regional Development of Cantabria (SODERCAN) runs the Start Up Capital Cantabria program, designed to fund new startups in the region with amounts ranging from €25,000 to €250,000, depending on the project being developed.

The financing model is innovative and flexible: convertible equity loans—that is, capital injections that can be repaid later through company shares.

Canary Islands: Fondo Canarias Financia 2 fund

The Society for the Economic Development of the Canary Islands (SODECAN) offers the Canarias Financia 2 fund, aimed at startups based in the Canary Islands.

To take advantage of this financial instrument, the startup’s formation must have occurred within the last five years. Additionally, the company must align with the key objectives of the Canary Islands Smart Specialization Strategy (such as fostering innovation and digitalization).

Funding ranging from €50,000 and €500,000 can cover up to 85% of eligible expenses. In all cases, the startup founder is exempt from repaying a portion of the loan, ranging from 10% to 25% of the capital injection.

Castilla-La Mancha: STEP Castilla-La Mancha loans

STEP (Strategic Technologies for Europe Platform) Castilla-La Mancha loans help cover the expenses typically faced by technology startups. Specifically, this financial instrument can provide a minimum of €200,000 to the startup, although in some cases the capital injection can reach €5 million.

Generally, STEP Castilla-La Mancha loans cover 80% of the startup’s expenses. To access them, the beneficiary startup is not required to be incorporated as a limited liability company (SL) or a public limited company (SA), although adopting one of these two legal forms is recommended.

Catalonia: Startup Capital coinvestment program

In 2024, ACCIÓ (Catalonia’s business growth agency) launched the Startup Capital coinvestment program, aimed at technology startups that seek to solve major challenges (commonly known as “deep tech”). This coinvestment program finances the initial expenses, which tend to be very high for companies of this type. To qualify, startups must have secured a capital injection from other startup funding sources within the last six months.

Although a new call for applications for 2026 has not yet been announced, ACCIÓ continues to offer specialized advice to startups seeking funding options.

Community of Madrid: Soy Startup program

Madrid-based startups that are in the process of being established or consolidated can access Avalmadrid’s Soy Startup program, which facilitates access to financing. To this end, it offers three loan lines and acts as a guarantor when the founder applies for other financial aid.

Chartered Community of Navarre: Start Up Capital Navarra program

The Start Up Capital Navarra program, run by the Navarre Development Corporation (Sodena), is designed for newly established startups with significant potential for growth and the creation of quality jobs in the Chartered Community of Navarre. To secure funding, the project must be innovative or clearly differentiated from the competition.

Typically, Sodena injects capital ranging from €100,000 to €500,000, although this limit can be exceeded in cases where higher funding is justified—such as when receiving an application from a startup with a highly promising strategic project.

Basque Country: Aurrera

Startups from the Basque Country that have been operating for less than three years can apply for Aurrera funding. Although this type of funding is typically limited to tech startups, this funding program is also open to projects in traditional sectors.

The requirements for accessing the funding consist of creating at least three jobs during the first three-year period and securing an endorsement of the startup’s business activity from an incubator such as BIC Bizkaia or BIC Gipuzkoa.

In Aurrera’s previous application cycle, 42 capital injections totaling €4.7 million were made into startups in the Basque Country.

Principality of Asturias: Asturias Startup Fund

The Asturias Startup Fund grants convertible equity loans to Asturian startups and to companies planning to establish themselves in the principality in the future, provided they contribute at least 25% of the investment through private capital. In other words, priority is given to cofinancing—an approach that, in this instance, entails no guarantees or fees. The Asturias Startup Fund is divided into two phases based on the stage of development of the entrepreneurial project:

• Phase I: Aimed at seed or preseed stage startups, Phase I provides access to financing of up to €100,000, repayable over a period of four to six years. The fixed interest component is the 12-month Euribor plus 3% or 4%, while the variable component can reach an additional 3% depending on the company’s performance.
  
• Phase II: Aimed at startups in the growth or expansion stages, Phase II financing can be up to €200,000, with a repayment period ranging from a minimum of five years to a maximum of seven. Only 2% or 3% is added to the Euribor, but the maximum variable interest rate is an additional 4%. Unlike Phase I, this funding requires the submission of an annual audit.
  

Region of Murcia: Impulsa Startup program

Impulsa Startup does not directly inject capital; instead, it helps you find investors for your startup. To this end, it organizes a 36-hour group training program for entrepreneurs, with a special focus on those who are unemployed.

Regulation of funding for Spanish startups

On December 23, 2022, the Law on the Promotion of the Startup Ecosystem (also known as the Startup Law) entered into force, regulating—among other aspects—financing mechanisms for Spanish startups. We’ve prepared a summary of the key measures included in this legislation:

Relaxing the requirements for bank guarantees

Some forms of public aid make the granting of funds or interim payments conditional upon the provision of guarantees—such as bank guarantees—which are often very demanding. The Startup Law allows a startup to request a reduction in the required guarantee in exchange for a proportional reduction in the amount of the aid or advance payment.

For example, to obtain financing worth €50,000, a financial institution might require a company to provide a bank guarantee covering 50% of the amount (€25,000); however, the company in question is able to provide only 20% of the requested guarantee (€5,000). In this scenario, the amount obtained would be reduced by the same proportion: €10,000 instead of the €50,000 initially requested.

To qualify for reduced guarantees, the startup must be up to date with its tax and Social Security obligations for the past five fiscal years and must not be subject to any proceedings for the repayment of previous grants.

Tax deductions

Tax benefits, such as deductions, are a major incentive for investors. Therefore, when seeking funding for your startup, you’ll find it easier to attract capital if you remind investors that they can deduct 50% of the money invested in your company.

This personal income tax (IRPF) deduction can reach up to €50,000 per year—based on a maximum investment of €100,000—provided the contribution is made at the time of incorporation or during a capital increase within five years of incorporation; this period is extended to seven years if the company is certified as a startup under the Startup Law.

In addition, to claim this tax benefit, the following requirements must be met:

• Ownership limit: The investor’s ownership stake cannot exceed 40% of the company’s share capital or voting rights; this percentage cannot be exceeded even when combined with the investments of one’s spouse or other relatives up to the second degree. Only the startup’s founding partners are exempt from this limit.
  
• Holding period: The shares must remain in the investor’s portfolio for more than three years and less than 12. If the investor sells their shares before the three-year mark, they will lose the deduction and must make the corresponding tax adjustment.
  
• Company requirements: The startup company must be incorporated as a public limited company (SA), a limited liability company (SL), or an employee-owned version of either. Furthermore, the company cannot be listed on an organized market and must carry out a genuine economic activity using its own personnel and material resources; in particular, its activity cannot consist of managing a portfolio of movable or immovable assets.
  
• Certification: The investor must obtain a certification issued by the company itself attesting to compliance with these requirements during the financial year in which the shares were acquired.
  

It’s important to note that this federal deduction is incompatible with other deductions that the various autonomous communities might apply to the same invested amounts. We recommend that you review the specific conditions of each transaction with a tax advisor.

Foreign financing

The Startup Law eliminates the requirement to obtain a Foreigner Identity Number (NIE) for foreign individuals wishing to invest in your Spanish startup. Instead, investors who are not Spanish citizens and do not reside in Spain must apply electronically for a Tax Identification Number (NIF).

The Spanish Tax Agency (AEAT) can revoke the NIF if proof of investment in a startup is not provided within six months of its assignment. Furthermore, if the party making the investment is a legal entity (such as a foreign company), the representative handling the process must already have their own Spanish NIF.

Phased payments in public procurement of innovation

Public procurement of innovation (PPI) is the process by which a public agency contracts solutions that do not yet exist on the market, rather than purchasing a product that’s already available. It serves as a natural entry point for a startup offering a solution to an unmet need.

Public agencies must take into account the characteristics of startups when setting the financial and technical eligibility requirements for these contracts—such as minimum revenue or proven prior experience—so as not to hinder participation.

Additionally, when contract execution can be divided into phases, the public agency should make partial payments as each phase is completed, rather than paying the full amount upon completion of the entire project. For a startup, this reduces the need to finance a public contract up front using its own resources.

Treasury stock for compensation plans

Any startup incorporated as an SL can purchase up to 20% of its share capital to allocate to its directors, employees, or other collaborators, provided the purpose is to implement a compensation plan. To do so, several conditions must be met:

• The compensation system must be provided for in the company’s bylaws.
  
• The general meeting must approve the plan and determine the maximum number of shares to be allocated in each financial year, their reference value, and the plan’s duration.
  
• The shares acquired by the company must be fully paid for by their holders.
  
• The purchase cannot be financed using share capital or reserves that the company is prohibited from distributing.
  
• The authorization granted by the general meeting expires after five years; if the company has not purchased the shares within that period, it must approve a new resolution.
  

Granting shares to employees

Although this is not a direct source of funding, startups can reduce payroll costs by paying a portion of employees’ compensation in company equity. The Startup Law facilitates the granting of shares to employees through the following measures:

• Tax exemption limit: The previous limit of €12,000 has been raised to €50,000, meaning no tax is payable on the first €50,000 of the value of the shares received.
  
• Taxation: Taxation on the amount exceeding the €50,000 limit can be deferred for up to 10 years. Additionally, it’s possible to defer tax payments until the shares are sold or begin trading on the stock exchange.
  
• Flexibility: Shares can be granted to employees without requiring that all transactions have the same terms and conditions.
  

Key factors in securing startup funding in Spain

The process of securing funding varies widely due to the broad range of financing instruments available in Spain. For example, understanding how to secure venture capital funding can be imperative for a startup: according to SpainCap, 408 Spanish startups received a total of €1.1 billion in venture capital investment in 2024.

Whatever your situation, there are some common practices that facilitate access to all types of funding for startups in Spain:

Being part of a highly attractive sector

Investors conduct analysis to ensure a startup will be successful and generate a good return. In this respect, one of the keys to securing funding is simply operating within an innovative, technology-driven, high-demand sector.

According to data shared by Spain’s National Entrepreneurship Office (ONE), startups in the travel sector received the highest volume of investment in 2025, surpassing the fintech and health technology sectors for the first time in several years.

Carefully reading the rules of each call for applications

Although many funding programs share similar requirements—and even provide comparable amounts of capital to startups—the legal terms (such as the conditions for repaying the capital injection) vary significantly.

The sixth additional provision of the General Subsidies Act establishes that interest-free loans or loans with below-market interest rates—such as Enisa’s equity loans—are governed by their own regulations. Therefore, it’s necessary to carefully read the terms and conditions of all calls for applications to avoid agreeing to terms that are not beneficial to your startup.

Negotiating the terms

It’s sometimes difficult to strike a balance between the startup’s interests and the investor’s incentives. For this reason, it’s important to negotiate terms that are attractive to both parties, especially in the medium and long term. If the agreement entails an excessive loss of control over the company, it’s advisable for the startup to forgo the deal and opt for a different financing instrument instead.

Planning ahead for due diligence

It’s common for financing to be withheld until due diligence has been completed. Therefore, it’s important that the startup founder anticipates this process so they can expedite it if possible and secure the capital injection without delay.

To prepare effectively for due diligence, it’s advisable to prepare accurate and transparent financial reports, as well as a market analysis, so that financial institutions can review data regarding the startup’s scalability and competitive advantages.

FAQs about startup funding in Spain