Spanish FinTech defies global trends in 2023, deal activity set to grow by 21%

Key Spanish FinTech investment stats in H1 2023:
• Spanish FinTech deal activity is on track to reach 104 transactions in 2023, a 21% increase from 2022
• Spanish FinTech deal activity totalled at 52 deals in the first six months of 2023, a 16% decrease YoY
• Spanish FinTech companies raised a combined $94m in H1 2023, a 51% decrease from 2022

Spanish FinTech investment in the first half of 2023 recorded a drop in both investment and deal activity YoY although the country has seen an uptick from H2 2022 in number of transactions. Spanish FinTech is on track to reach 104 deals in 2023 based on H1 activity, a 21% increase from 2022. In the first half of 2023, the total number of deals amounted to 52, marking a 16% decline compared to the previous year. During the first half of 2023, Spanish FinTech enterprises collectively raised $94m of funding, experiencing a 51% reduction in comparison to the funding raised in 2022.

VeriDas, an identity verification platform, had the largest FinTech deal in Spain during H1 2023, raising $16.4m in their latest Series A funding round. The funding will be used to expand their products globally. VeriDas, in its announcement, expresses its intention to enhance collaboration by joining the OIX community, facilitating the exchange of insights and best practices within the organization’s global network. With clients spanning 25 countries, the company recognizes the significance of streamlined identity technology that empowers individuals to navigate both their digital and physical realms seamlessly and securely. “The world needs identity technology that allows consumers and citizens to move through their digital and physical worlds without friction or fear,” says Veridas CEO Eduardo Azanza. “For this to be possible, we must foster community innovation and contribute to the goal of a holistically adopted secure and reliable identity verification solution.”

Highlighted by a recent evaluation by the National Institute of Standards and Technology (NIST), Veridas achieved a notable second position globally in the domains of face and voice authentication. Hailing from Navarra, the company additionally obtained the LenelS2 factory certification for seamless integration with the OnGuard access control system. Notably, Veridas expanded its age verification software capabilities through the introduction of the Facial Age Validation service, leveraging selfie biometrics to offer a robust solution.
Lending Technology was the most active FinTech subsector in Spain during H1 2023 with ten deals, a 19.2% share of all transactions. Blockchain & Digital Asset Technologies were second with nine deals, a 17.3% share of total deals and PayTech was third with six deals.
Starting in 2023, the European Commission launched The European Blockchain Regulatory Sandbox in 2023 to promote legal certainty for blockchain services providers. The sandbox will annually accept cohorts of 20 blockchain use cases. Spain is notably the third most active Blockchain country in the EU based on H1 2023 deal activity, meaning Spanish companies are likely to join this cohort. The European Blockchain Sandbox establishes a cross-European regulatory framework to enhance legal certainty for innovative blockchain solutions. These technologies are applied in various industries like energy, education, healthcare, finance, and logistics. The sandbox facilitates confidential dialogues between regulators and innovators from both private and public sectors, offering legal guidance and advice. It spans industries and regions to uncover and share best practices within the EU/EEA blockchain community, welcoming use cases on any blockchain infrastructure.

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