If we think of a startup’s typical life cycle over a 10-year span, the second half is where growth and maturity usually take place… for those that survive long enough to get there. Most startups don’t.
If we apply that same timeline to VDS, we could say that one of Europe’s most prominent tech events is at a key inflection point — somewhere between expansion and consolidation.
This is backed by data. The 2024 edition of VDS generated over €20 million in economic impact, a 35% increase from the previous year, according to the latest EY report for Startup Valencia.
And while that original MVP spirit from the 2018 edition still remains (the drive to improve, the excitement building up to the event, the city’s collective effort to prove it takes innovation seriously…), this 2025 edition will carry special meaning. It will be the first one held after the devastating floods that hit Valencia last October, a reminder that technology must also serve people and protect the places they live in.
More than numbers: VDS’ economic impact and international reach
Valencia has long been an international city, initially thanks to tourism and the hundreds of thousands of visitors it attracts to the region every year. But in recent years, its global appeal has extended well beyond leisure.
A growing number of professionals and entrepreneurs are choosing to relocate to Valencia in search of a better quality of life and genuine work-life balance.
Among this new wave are founders who have set up their companies in the city, others who have moved existing teams here, and talented professionals drawn by new job opportunities. Add to that a growing community of repatriated talent (locals returning with global experience) and you have the makings of a dynamic, global ecosystem.
This increasing interest in Valencia as an innovation hub is reflected in the EY report on the economic impact of VDS 2024:
– €13.1 million in direct impact, driven by spending in accommodation, dining, transport, and leisure.
– €7.2 million in indirect impact, through knock-on effects across related sectors.
– 12,000 in-person attendees from 91 countries.
– 600+ investors with a combined portfolio of over €8 billion.
These numbers place VDS in the same league as major European innovation summits, such as South Summit in Madrid, known for its access to capital and corporate networks, or Web Summit in Lisbon, renowned for its scale and media reach.
But where VDS stands out is in its balance between international ambition and local engagement. It offers a more accessible, collaborative, and community-driven experience, with a clear focus on connecting global tech trends to real regional impact.
A clear sign of this growing international relevance is the recent arrival of IBM, which has established a global digital sales center in Valencia, and Microsoft, which is building a new innovation hub focused on testing and developing technologies across three strategic sectors: health, sports, and entertainment.
Valencia: a thriving innovation ecosystem with global ambition
Valencia is no longer just “one to watch”, it’s a serious contender among Europe’s leading tech hubs.
In recent years, the city has undergone a profound transformation, combining its historic international outlook with a thriving digital economy and a growing community of entrepreneurs, researchers and investors.
Several key strengths explain why Valencia is fast becoming a magnet for innovation with global reach:
– Deep and diverse talent pool: With five universities and numerous research centers, the region produces thousands of STEM graduates every year. This is further enriched by the influx of international professionals, digital nomads, and remote workers who choose Valencia for its openness and potential.
– Outstanding quality of life: Valencia offers something few tech hubs can still promise, balance. A place where founders, engineers and creatives can build ambitious companies without sacrificing their health, their time or their connection to the city and surroundings. Mediterranean climate, a human-scale urban layout, access to nature, and a strong cultural identity make it not only a good place to start a company, but a good place to live while doing it.
– Connected and collaborative ecosystem: The city has cultivated a tight-knit innovation network that bridges startups, corporates, accelerators, universities and public institutions. Platforms like Startup Valencia and events like VDS act as engines of connectivity and visibility, putting the ecosystem on the radar of international investors and partners.
– Access to capital and scale-up infrastructure: Investment activity is growing, with local and national VC funds, corporate innovation arms and EU-backed accelerators increasingly present. Startups in Valencia benefit from resources designed for all stages, from idea to international scale.
But perhaps the most strategic advantage of Valencia lies in its difference. In a world where building tech solutions is becoming increasingly commoditised thanks to AI, remote infrastructure, globalised talent, and accessible capital, the real differentiators are no longer purely technical or financial. What matters now is where you build, why you build, and with whom you build.
In short: Valencia competes in ‘hub culture’ head-to-head with the world’s leading ecosystems.
Spain: second fastest growing ecosystem in Europe
Spain is no longer just a rising star in the European startup scene, it’s becoming a strategic node in the continent’s innovation economy. With vibrant ecosystems in cities like Madrid, Barcelona and Valencia, Spain is seeing a steady rise in investment, international recognition, and the maturity of its tech sector.
Some of the key facts according to the EY report presented at VDS 2024 include:
– Spain ranks 5th in the EU’s list of largest startup ecosystems
– The country also ranks 4th in Europe in terms of tech employment, reflecting its ability to generate skilled jobs across both early-stage and scale-up companies.
– €2.2 billion in venture capital was invested in Spanish startups in 2023, a strong recovery after a dip in global VC activity.
– Spain is home to 15 unicorns, and its pipeline of future scaleups continues to expand, especially in AI, fintech, healthtech, and climate tech.
Unlike other European countries with highly centralised ecosystems, Spain’s innovation economy is geographically distributed, with multiple cities developing their own identities and strengths:
This decentralisation is proving to be an asset, enabling regional specialisation, improving quality of life for founders and teams, and easing infrastructure pressure in the country’s largest cities.
Spain’s innovation ecosystem has also benefited from supportive public policies in recent years:
– The Startup Law (Ley de Startups) has created a more competitive legal and tax environment for startups and investors.
– National plans such as España Nación Emprendedora and Digital Spain 2026 set long-term roadmaps for digitalisation, entrepreneurship and technological sovereignty.
– The country is a major participant in European innovation frameworks, with startups increasingly accessing NextGenerationEU funds, Horizon Europe programmes, and EIC grants.
The message coming out of VDS 2024 is clear: Spain has moved past the “potential” phase. It’s now playing a key role in the European innovation economy and its momentum is just beginning.
Architects of a tech-powered future
Spanish founders and startups, historically accustomed to limited capital, have developed a culture of capital efficiency stretching every euro and focusing on sustainable growth. Now that investment is more accessible than ever, Spanish entrepreneurs know exactly how to deploy it effectively and strategically.
Moreover, there’s been a profound shift in mindset. Spanish founders no longer see themselves as playing catch-up: they believe they have the same capabilities as peers from Germany, France, the Netherlands or Nordic countries. With a global mindset fully embedded in the ecosystem, international leadership is no longer an exception.
That confidence is reflected in the current presence of Spanish leaders at the highest levels of global tech corporations such as Javier Oliván (Meta’s No.2) or Oriol Vinyals, Google’s Deepmind VP of Research.
This maturity is now reflected in the narrative Spanish startups and entrepreneurs build and the problems they choose to solve.
VDS has always made a conscious effort to align its content and speaker lineup with the major challenges facing society. In 2025, that commitment is more relevant than ever and the message is being amplified. This year’s edition will focus on key global themes that require urgent innovation and collective intelligence:
Valencia, and by extension VDS, is no longer just a meeting point for the startup world. It’s a platform for visionaries building the next wave of tech solutions that are not only scalable, but socially and environmentally responsible.
Join the legion of architects shaping a tech-powered future: book your pass for VDS 2025.
