One of the most rapidly advancing areas in the Spanish economy is Financial Technology (Fintech). The seeds were sown quite some time ago but as the industry started blooming in the past few years. The founding of hundreds of successful start-up companies is now a major European hub of innovation. The ever-expanding need for innovation in finance has caused explosive growth. Spain is uniquely positioned in this new market. With much human innovative power to offer, the Spanish economy is reaping the benefits.
Over its long history, Spain has accrued much financial wealth. The Spanish economy has lost its luster of yesteryear. Yet, it still boasts an incredibly well educated population. Like much of Europe, Spain has turned its economy toward service and away from manufacturing. This has spurred the growth of many financial organizations and businesses. New problems breed new innovation to solve them.
Spain sits at an interesting crossroads. It has not, historically, been a center of technological innovation. Yet, today it seems poised to be on the cutting edge of Fintech. Start-ups are now more common in Spain. This normalization has opened up the country to different investments.
Venture capital is becoming more and more invested in the Iberian Peninsula. These firms are hyper focused on innovation and getting the investment in early. The funding provided by VCs is a good place to start. VC firms offer greater benefits than funding new businesses. With the support of a VC, start-ups gain investor confidence. That confidence in a firm can help with all aspects of the business. Talent recruitment becomes easier with more capital and a better name. Banks will also offer lower interest credit and be more willing to offer other opportunities.
What does the future hold? That’s a question that any investor asks. The short-term, the murky mid-term, and the long-term outlooks are all important. David Kezerashvili, the owner of Infinity VC, believes he has the answer. As an experienced veteran in Fintech, he knows all the ins and outs.
In David’s words, the range of the expansion that will be seen in Spain is still up for debate. It’s a much more settled kind of range of questions, not black-and-white opposites. Growth is going to continue into the next few years, but where will the country end up in a decade or two is unclear. Spain very much reflects the changes that are happening abroad. This is also a reason for the influx in interest in the industry.
Ongoing changes in Spain’s economy are ever more promising for Fintech. Recent laws and regulations promote current and future projects in the field. Fintech is among InfinityVC’s most profitable areas of investment. Kezerashvili sees that Spain has been successful at creating a hospitable climate. Here, start-ups are born, nurtured to success, and continue to grow.
What makes Spain so different? What gives Spain an advantage in this arena while other European countries lag? Spain has created a system that encourages investment but also a climate where risk can be taken. Without risk for an entrepreneur, success will be difficult to find. An entrepreneur learns on the go and learns how to adapt to their current environment as it comes.
The adaptive nature of the entrepreneurial mind is evident in less hospitable investment environments. New businesses will still form despite roadblocks. In his native Georgia, David Kezerashvili was forced to navigate an archaic bureaucracy. In the end, he built a gem of modern architecture right in the middle of Tbilisi, Vake Plaza. This despite the constant fight to get the project off the ground.
David points out that such a project in Spain would have happened faster. Fewer bureaucratic headaches and roadblocks would have allowed more innovation.
It is hard to argue with success. Removing regulatory issues to encourage private efforts have been very successful in Spain. Fintech, along with other tech startups will continue to thrive and multiply in Spain. It’s an area that shows huge potential. The industry has potential markets all over the globe. Now is the time for investors to step up and move the process forward even further.
