Article by Ian Rankin, Chief Commercial Officer at Sim Local
As its ecosystem grows, the coastal city of Barcelona is becoming an even more attractive tech base, serving as an excellent gateway to the European market.
Barcelona has always been like a magnet, attracting explorers, artists, merchants, and now, tech innovators from around the world. Today, beyond its historic streets and tourist-filled plazas, Catalonia’s capital shines as a hub for technology and entrepreneurship, establishing itself as a gateway to the European ecosystem.
According to figures from the Anàlisi de l’ecosistema startup a Catalunya report, the number of startups in 2022 grew by 6.3%, exceeding 2,000.
With this growth, Barcelona has positioned itself as the fifth-best European ecosystem to start a business, trailing only Paris, Berlin, Stockholm, and Amsterdam. On a global scale, according to the Global Startup Ecosystem Report 2023 by Startup Genome, Barcelona ranks fourth among emerging ecosystems, with a valuation of $21 billion.
Adding to this are well-trained talent pools, a favorable Spanish legal system, and Barcelona’s appeal as a “smart city,” which was recognized by Fortune magazine as the most connected city in the world. It’s easy to see why so many early-stage companies have thrived here.
An Appeal for Scaleups
Although Barcelona’s strong environment for early-stage startups is widely acknowledged, there are signs that the city has more potential to offer.
In most major European cities, large tech companies tend to concentrate in the capital and surrounding areas — in Spain’s case, Madrid.
However, Spain is the only European country with two major startup hubs. According to a report from Crunchbase, Barcelona is home to more than 400 emerging tech companies that have collectively raised $8.7 billion since their inception — almost half of Spain’s total and more than its capital city.
For instance, Google has announced plans to double its workforce in the city, creating a major advanced technology hub. Facebook is planning a global office to tackle fake news, employing 500 people in the iconic Glòries tower. Amazon also opened a facility to support SMEs across Europe, with 200 employees.
Moreover, another 100 international companies have set up their digital and innovation centers in Barcelona, making it the sixth most attractive city in the world for international talent.
Sun, Sea, and Opportunities
With its Mediterranean climate, mild winters, and warm summers all year round, along with a well-connected international airport and fast transport links to both mountains and beaches within 20 minutes, Barcelona is a top destination for digital nomads.
It’s considered a great place to find a diverse community of tech professionals, and its appeal as a friendly and fun place to live remains strong. Communities must also keep up with new technologies, such as eSIMs, to stay connected.
In 2023, the Spanish government introduced the long-awaited digital nomad visa, making it easier for many remote workers to call Barcelona home, even if their employers are based elsewhere.
According to data from the Observatori del Turisme de Barcelona, last year 8.27 million tourists traveled to Catalonia’s capital, followed closely by Madrid, which hosted 9.87 million visitors.
Thus, it’s no wonder Barcelona has earned the distinction of being Spain’s most international city. It has become a magnet for foreign startup founders and employees, who make up 19% and 23% of the total, respectively.
The best-known startups that have made Barcelona their headquarters include Travelperk, Glovo, and Typeform, among others.
Embracing New Technology: Fuelling Connectivity for a Global Tech Hub
To complement the narrative of Barcelona as a dynamic tech hub, it’s worth noting Spain’s rapid adoption of new technologies, such as eSIM, which supports the city’s connectivity ambitions. eSIM provider Sim Local have unique insights from their physical presence in Spain revealing that approximately 25% of retail customers are already choosing the convenience of eSIM over traditional physical SIM when given the option.
This preference underscores the market’s openness to innovative connectivity solutions and hints at a broader trend: on the inbound corridor side, Spain is among the top ten growth markets for eSIM sales, both for inbound and outbound users.
This growing eSIM adoption aligns with the needs of Barcelona’s increasingly mobile and tech-savvy population, particularly digital nomads and international entrepreneurs who rely on seamless connectivity. The city’s infrastructure and supportive environment for digital advancements make it a strong base for testing and implementing new technologies, reaffirming its role as a gateway to Europe for emerging tech solutions and an optimal location for tech-driven companies looking to expand across the continent.
Conclusions
Barcelona is an ideal tech ecosystem thanks to its strategic location, highly skilled talent, and innovation-driven environment supported by startup-friendly policies and foreign investment.
The city combines advanced infrastructure with a network of incubators and accelerators that foster the growth of emerging companies.
Additionally, its cultural appeal and quality of life attract international talent, cementing Catalonia’s capital as an excellent gateway to the European market.
Disclosure: This article includes a client of an Espacio portfolio company.
