Interest in investing in€¦ · Source: 1. Observatorio Nacional de las Telecomunicaciones y de la...

1© 2018 KPMG, S.A., sociedad anónima española y miembro de la red KPMG de firmas independientes, miembros de la red KPMG, afil iadas a KPMG International Cooperative (“KPMG International”), sociedad suiza. Todos los derechos reservados.

Interest in positioning your

company in the european

and/or latinoamerican

market

Interest in launching your

business idea or boost

your startup

Interest in investing in

innovative and booming

technologies


Where talent is cared for and empoweredWhere supply and demand converge

Where investors try and repeat Where the future is built

The Madrid Region Madrid ranks 6th

among the 78 most important tech hubs in

Europe.

3rd European Region by number of

multinationals.

33% of the tech companies with a

presence in Spain are in the Madrid

Region, where 70% of the business volume

is concentrated.

More than 1,000 startups in Madrid in

2017 (40% more than in 2016). 31.5% of

the total of Spain.

€ 191.8 million of investment in startups

located in Madrid in 2016. 47.6% of the

investment in Spain.

Consolidation of financing rounds of

more than 10 million and an increase in

the number of Exits in recent years.

32% of the Spanish innovative ecosystem is

located in the Madrid region

Pioneers, together with France and the UK, in

the development of the 5G network and in

the application of patent box.

Spain is a strategic point for different

submarine communication nodes (Marea,

EllaLink and Orval).

3 of the 20 best business schools in

Europe are in Madrid. Between 20 and

25% of its graduates choose the

technology sector to work.

4th Region of Europe by number of

developers and 1st of Spain, with 50% of

the total.

Amazon, with its Tech Hub, and Google,

with its campus, have recently bet on the

talent of Madrid.

Big Data / Data Analytics


Where talent is cared for and empoweredWhere supply and demand converge

Where investors try and repeat Where the future is built

1. Main magnitudes of the ICT sector.

2. Business agents of reference.

3. Thoughtful local demand.

4. Last investments received.

1. A source of financing for every need.

2. Talent financing.

3. Success stories.

4. Tax system.

5. Tax support for innovation.

6. Key contacts

1. Knowledge ecosystem

2. Infrastructures at the forefront of the world.

3. Enabling environment for new technologies.

4. Global networking center.

1. Tailor-made teaching and research

infrastructures.

2. Quarry of talent that bets on the sector.

3. Mature labor market with available

resources.

4. Most competitive labor cost in the

European advanced regions


1. Main magnitudes of the ICT sector.

2. Business agents of reference.

3. Thoughtful local demand.

4. Last investments received.


Business network: Main magnitudes of the ICT sector

The Madrid Region is one of the main Tech Hubs in Europe

Source: 1. Observatorio Nacional de las Telecomunicaciones y de la Sociedad de la Información (ONTSI). 2. Digital Startup Ecosystem Overview Mobile World Capital Barcelona. 3. The State of

European Tech. Atomico and Slush. ASCRI

ICT companies

StartupsTechnological

ecosystem

33% of ICT companies

located in Spain

(44% of large companies

and 34% of medium

companies)

69.3% of the ICT

business volume in

Spain

3rd region of Europe, after

London and Moscow and 1st of

Spain by number of

multinationals (Recently:

Amazon and Ryanair)

More than 1,000

startups in Madrid in

2017 (40% more than in

2016). 31.5% of the total

of Spain

€ 191.8 million of

investment in startups

located in Madrid in 2016.

47.6% of the investment

in Spain

The average value of

financing rounds in Spain

(€ 3.64 million) has doubled

between 2016 and 2017

In the Madrid Region, 450

new technology companies

are created every year

6th place among the 78

most important tech

hubs in Europe

4th Region of Europe

by number of

developers and 1st of

Spain (50% of Spain)


MAIN COMPANIES BY BILLING VOLUME MAIN MULTINATIONALS IMPLANTED MAIN SPANISH STARTUPS

Business network: Business agents of reference

The Region of Madrid forms a highly internationalized ecosystem, in which startups find a highly collaborative environment

Source: 1. Observatorio Nacional de las Telecomunicaciones y de la Sociedad de la Información (ONTSI). 2.Informe de Actividad de Venture Capital y Private Equity (ASCRI).

1st by number of multinationals

in Spain

€ 68,428M

of turnover in 2015

23 operational data centers

in 405.600 square feet

https://www.google.es/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGlc-ZiZHZAhUCuhQKHX6aBiYQjRwIBw&url=https://pitchbook.com/profiles/company/161947-36&psig=AOvVaw1_pNAK0cv-i97Tm4oL8yAR&ust=1517999027959122

https://www.google.es/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjGlc-ZiZHZAhUCuhQKHX6aBiYQjRwIBw&url=https://pitchbook.com/profiles/company/161947-36&psig=AOvVaw1_pNAK0cv-i97Tm4oL8yAR&ust=1517999027959122


Business network: Business agents of reference

In the Madrid Region, the largest offer of data centers in Spain is concentrated

Source: Eurocloud Spain

“The data center is, nowadays, the fundamental

piece of the digital transformation in Spain.

Emerging technologies (Internet of things, cloud

computing, Big Data, Smart Cities and Industry 4.0)

are the architects of the beginning of a new era in

which hybridization, open innovation and the

development of new business models must become

phenomena essentials ICT and the Internet are the

engines of the digital economy and will undergo a

huge transformation in the coming years”.

José Luis Friebel

DatacenterDynamics Managing Director

23

Operational data centers in Madrid

€441MBig Data turnover in 2014

+10.000People in the Big Data industry in

Spain

+30%Big Data market grows YtY. Seven

times more than the traditional

technological investement.


Business network: Thoughtful local demand

Seven of the tractor sectors of the economy of the Region of Madrid make intensive use of big data and act as tractors of the sector

Madrid has a unique business and industrial network for the development and commercialization of services and solutions

National and

multinational

companies of reference

% s / GDP of Madrid 16,04% 14,40% 13,29% 12;83% 11,09% 6,51% 6,07% 5,69% 2,99% 2,39%

% s / Employment of

Madrid20,23% 5,99% 15,64% 18,80% 6,33% 3,76% 7,40% 5,02% 2,21% 0,76%

The main ICT subsectors and the business and industrial tissue of Madrid make up a collaborative ecosystem

Big Data / Data Analytics

Source: 1.Elaboración propia con datos del Instituto Nacional de Estadística (INE)

GOVERNMENT

, HEALTH and

EDUCATION

CONSTRUCTION

AND REAL

ESTATE

COMMERCE PROFESSION

SERVICES

TELECO BANKING AND

FINANCES

TOURISM LOGISTICS MEDIA ENERGETIC

High Medium LowCaption: Hybridization level


Fuente: 1. Elaboración KPMG a partir de webs corporativas y notas de prensa.

01

02

03

04

05

06

0809

11

10

HuaweiEn 2004 abre su sede en Madrid para

desarrollar su negocio

Nokia Siemens y VodafoneEn 2009 abren centro mundial de

Investigación en Madrid

FacebookEn 2010 Facebook inaugural sus oficinas en

Madrid

AlibabaEn 2018 Alibaba ubica en

Madrid sus oficinas

centrales

The Cube En 2017, se inaugural el

1º centro de innovación

centrado en IoT

UBEREn 2017 Uber ubica en Madrid

sus oficinas centrales para el

Sur de Europa

GoogleEn 2015 Google crea en Madrid uno de sus

seis campus para emprendedores

AmazonEn 2012, inaugural su 1º centro logistico en

español en Madrid

AccionaEn 2016, se imprimió el 1º Puente

3D del mundo

Synergic Partners (TEF)En 2014, Synergic Partners entre las 20

mejores empresas de Big Data a nivel

internacional

07

HPEEn 2017 Hewlett Packard Enterprise inaugural

un centro dedicado al desarrollo de soluciones

tecnológicas e innovadoras (CTC)

In 2004 opens its HQ in Madrid to

develop its business

In 2009 opening of its worldwide

investigation center in Madrid

In 2012 opening of the 1st spanish

logistic center in Madrid

In 2017 Uber locates in Madrid its

main offices for Southern Europe

In 2014 Synergic Partners among the

top 20 Big Data worldwide

companies

In 2018 Alibaba locates in Madrid

its main offices

In 2017, opening of the

1st IoT innovation center

in Madrid

In 2017 Hewlett Packard Enterprise

opened a center focused in

technological and innovative solutions

(CTC)

In 2016, the 1st 3D bridge was

printed in Madrid

In 2015 Google created in Madrid

one of its six campuses for

innovation

In 2010 Facebook opened its

offices in Madrid

Source

Business network: Last investments received

Each year new technology companies rely on the Region of Madrid and those that already have a presence increase their investment


Develop new

functionalities for

Amazon webs and

mobile Apps in Europe

Amazon's Tech Hub

Amazon is working to turn the Hub into a center of international innovation.

Marketplace support

to companies

registered in

Amazon.com

Unique center out of

the USA

Business network: Amazon already relies on the Madrid Region

In July 2016, Amazon opens its software development center in the Region of Madrid for the design of new services and tools

"Over the last few years we have proven that

Spain is an ideal place to innovate. Here we

have found professionals with incredible

talent. We will increase our investments in

Spain and create new jobs "

Terry Hanold, Vice President of Technology at

Amazon EU

In Spain, Amazon has also opted to increase

investments in its logistics centers such as

San Fernando de Henares (Madrid). In

addition, they have made a transfer of their

corporate offices in Madrid to a space with

more than 12 thousand meters available, with

a view to duplicating their current staff in the

Region of Madrid.

Design & implement

internal tools and

services to support the

growing BU in Europe

Help design a software

to improve processes

related with the online

library


1. Tailor-made teaching and research

infrastructures.

2. Quarry of talent that bets on the sector.

3. Mature labor market with available

ressources.

4. Most competitive labor cost in the

European advanced regions.


Talent and competitiveness: Tailored teaching and research infrastructures

Madrid has teaching and research infrastructures that boost talent in the most demanded niches in the sector

The first level

training in the

academic field ...

16University centers with more than

12,000 students of key subjects for

the sector

3Business Schools in the

world's top 10

20%-25%of graduates from IESE and IE Business

School bet on the ICT sector

and the

commitment to

research and

development ...

they make the

Madrid Region a

leader

6public excellence

campus

1ªSpanish region for R

& D expenditure: €

3,480M

+20technology centers

3º hubof AI talent in Europe

6ºmost active center in blockchain

development (109 projects)

4ªregion in the EU-28 with

more technological

employment

4ªEuropean city by number of

professional developers:

104,102

Source: 1. Ministry of Education, Culture and Sports; 2. Ministry of Energy, Tourism and Digital Agenda; 3.The State of European Tech. Atomic and SlushM; 4.Business Schools Global Ranking of

Financial Times; 5. Invest in Madrid.


Talent and competitiveness: Tailored teaching and research infrastructures

Specialized education in Big Data and Data Analytics

Source: Programas y Masters (https://josejuliolopezsantos.wordpress.com/2014/06/14/los-recursos-mas-destacados-para-la-formacion-en-big-data-en-espana-y-online/ )

Datahack Programa intensivo en tecnologías Big Data y Analytics

Escuela de Organización Industrial (EOI) Programa ejecutivo en Big Data & Business Analytics

Universidad Complutense de Madrid Máster en Big Data y Business Analytics

UNED Máster en Big Data y Business Analytics

IMF Business School Máster en Big Data y Business Analytics

Universidad Complutense de Madrid Máster de Turismo, Big Data y Marketing Digital

Kschool Escuela de Big Data

Centro Universitario U-Tad Programas de Big Data y Data Science

Instituto de Empresa (IE) Master in Business Analytics and Big Data

Madrid School of Marketing Máster Executive en Big Data y Analytics

AFI Escuela de Finanzas: Máster en Data Science y Big Data en Finanzas

Universidad Europea de Madrid Máster en Big Data Analytics

CICE Máster de Big Data y Business Intelligence

Universidad Complutense de Madrid Máster en Minería de Datos e Inteligencia de Negocio

Universidad Carlos III de Madrid Máster en Métodos Analíticos para Datos Masivos y Big Data

Cámara de Comercio de Madrid Curso superior en Big Data

ITMadrid Programa en Business Intelligence & Big Data

Big Data International Campus Máster Telefónica en Big Data

Universidad Autónoma de Madrid Máster en Big Data y Data Science

Education in Big Data


Talent and competitiveness: Quarry of talent that bets on the sector

Each year more than 1,200 graduates graduate from the Madrid Region and MBA graduates opt for the technology sector

Source: 1. Ministry of Education, Culture and Sports. 2. Business Schools Global Ranking prepared by Financial Times. 3. Business School MBA graduate Employment Report.

508

961

8065

COMPUTING

120

139

1171

MATHS

68

389

2115

APP y SOFTWARE

66

DAT BASE

Number of students 2016-2017

University Master Doctor’s

degree

16 Universities:

8 private, 6 public and

2 remote

3 of the 10 best Business

Schools in the world:

IE Business School (3rd), IESE

(7th) and ESADE (8th)

2125

22 21 20 20 1917

1916

2320

17 1619 19

Promedio IE Business School

Said Business School (Oxford)

London Business School

Judge Business School

(Cambridge)

IESE INSEAD HEC París

% GRADUATES MBA THAT IS INCORPORATED TO THE SECTOR

2016 2015


Talent and competitiveness: Mature labor market with available ressources

Spain is the 4th region of the EU-28 with the most technological jobs and one of the most attractive for attracting talent

Source: 1. ticjob.es. 2.Adecco. 3. Ministry of Education, Culture and Sports.

43%

17%6%

34%

Madrid

Cataluña

Andalucía

Other CCAA

The Madrid Region accounts for 43%

of technological employment in

Spain

70% of the contracts are of indefinite

duration

70%

20%

9%1% Indefinite

Temporary

Freelance

Other

European city for

technological emigrants

from the EU

European city for non-EU

technological emigrants

The Community of Madrid has the

IMDEA network for identifying and

attracting talent to the Region

3

5

31%

24%

22%

11%

5%

4%

3%

Other

Developer

Development analyst

Consultant

System administrator

Software architect

Support

38%

20%

15%

10%

9%

8%

Otros

Java

Javascript

NET

SQL

SAP

Most demanded profiles

by position

Profiles most demanded

by technology


Talent and competitiveness: Mature labor market with available ressources

Madrid is the 4th European Region with the most developers, profile most in demand today

Source: 1. The State of European Tech. Atomic and Slush. 2. Randstad Research 2018 Salary Trends Report

4

1

2

3

5

ROTATION OF WORKERS

51% of companies in the sector have less

than 4% staff turnover, 31% are between 4

and 10% and 18.2% above 10%

Banda

baja

Banda

alta

Banda

baja

Banda

alta

Arquitecto software 36.000 63.500 40.000 63.500

Java Developer, J2EE 21.500 36.000 21.500 36.000

Developer.net 21.000 36.000 21.000 36.000

Desarroolador otros

(C, C+, COBOL, PL/SQL)22.500 40.000 22.500 40.000

Front Developer 24.000 36.000 24.000 36.000

Desarrollador de apps 24.000 36.000 28.000 40.000

Salarios de

desarrolladores (€)

Madrid Barcelona


44

40,6 40,4 39,6

36,1

32,3 32 31,5 30,528,7 28,1

26,9 25,9 25,7

20,4

Labor cost in the service sector (€ / hour)

Source: 1. Destatis 2016. 2. Robert Walters 2018. 3. Payscale.

International salary survey, 2018

(Thousands of €)

España Francia Reino Unido Alemania

Security IT 80-85k 51-80k40-50k 55-75k

90-140kCIO 130-230k60-150k 84-168k

Big Data architect 45-70k55-70k 45-70k 50-99k

ERP consultant 35-45k 50-60k 32-70k 45-67k

Software engineer 68-91k 55-70k26 -33k 60 -100k

PMO 56-125k50-70k 50-70k 45-96k

Web designer 28-35k23 -27k 23-33k 25-43k

45-60k 68-114kDevelopment manager 70-120k 58-110k

Talent and competitiveness: The most competitive labor cost in the European advanced regions

Labor costs in the Madrid Region are the most competitive of the main European technological hubs

Spain France UK Germany


Talent and competitiveness: Google Campus

Google has opted for the Region for the opening of its fourth Google Campus, first Spanish-speaking, turning Madrid into a Global Entrepreneurship Hub

"The company believes in the

innovative movement that is taking

place in this country, and above all

because there is a large community of

innovators in Europe who love Madrid

for its climate, the work of its people

and its environment."

Mary Groove, director of Google for

Entrepeneur.

"There are already more than 1800

people registered, of which 25% are

women and more than 100 mentors

have signed up. This new space will

organize events such as the Campus

Exchange -with startups from around

the world-, Talks @ Campus "

Sofía Benjumea, Director of Google

Campus Madrid

Innovation and

aceleration

center in Spain

Technological

entrepreneurial

& collaboration

space to

support new

businessesTalks and

bootcamps to

acquire new

techniques to

develop ideas


1. Knowledge ecosystem.

2. Infrastructures at the forefront of the

world.

3. Enabling environment for new

technologies.

4. Global networking center.


82

79

80

8183

72

10

79

41

44

35

56

89

47

43

30

34

38

40

73

1. Madrid International Lab

2. Digital Asset Deployment

3. Campus Madrid/

Seedrocket/ Techstars

4. Go Madrid

5. Top Seeds Lab

6. innoSmart (madri+d)

7.Startup Alcobendas

8.Prisa Inn

9.HUB Emprende

10. IMEPE

11.AVIE

12. Youth Business

Spain

13. Finnovista

14.OARSIS

15. Fundación

Repsol

16. Sonar Ventures

17. Cink Emprende

18. Tetuán Valley

19. Wayra

20. Conector Startup

Accelerator

21. Chamberí Valley

22. Demium Games

23. GSG Business Hub

24. Impact HUB

25. Madrid Startup House

26. UnLtd Spain

27. WeWork

28. Madritech

29. Tech HUB (Campus

Madrid)

30. Explore UC3M

31. StartUp University

32. CK Bank

33. B2Work

34. Bereloft

35. Be Work

36. Busining City

37. Colabora Coworking

38. Conecta Lab

39. Cool Inquieto

40. Coworking Mostoles

41.Cowork in Tres

Cantos

84. Park Universidad Politécnica

de Madrid (3)

85. IMDEA (7)

86. Centro de ciberseguridad

industrial

87. EY AI Innovation center

88. Fujitsu

89. Airbus

89. AI.innovation Space

90. Global Sport

Innovation Center

91. Innsite

92. The Cube / MIOTI

93. La Nave

95. madrid+d

96. ESA BIC

97. Fundación Cotec

98. FIFED

99. Asociación Fintech

Accelerators and incubators

Coworking spaces

Technological parks/

Innovation centers/

Foundations & associations

42. Cowork Pozuelo

43. Coworking Vacaorey

44. Cowup

45. Dcollab

46. Ecoworking

47. Eidos Coworking

48. El Patio

49. Espacio Geranios

50. Espacio Oculto

51. Espacio Mood(2)

52. Espíritu 23

53. Freeland

Innovation Center

54. Gabinete de

Historia Natural

55. Gar-aje

56. Help4U

57. Izada Coworking

58. Instituto Europeo

de Emprendimiento

59. Kleison

60. Kunlabori

61. La Cow

62. La Industrial

63. La Manual

64. Lanau

65. La Quinta del

Sordo

66. La Terminal

67. L’Espace Almirante 5

68. Pasillo Verde

69. SeAceptanIdeas

70. The Country Cloud

71. The Garden

72. TRD Space

73. Tutandem

74. Union Coworking

75. Utopic US

76. Work & Wifi

77. Workcase

78. Worklab

79. Tecnoalcalá

80. Tecnogetafe

81. Leganés Tecnológico

82. Parque Científico

Madrid

83. Móstoles tecnológico

4296

100. AMETIC

101. HispaRob

102. DEV

103. Fundación

Big Data

104. Espacio

Telefónica

105. BBVA Open

Space

84

84

84

85

85

85

85

85

91

Big Data initiatives

103

104

105

Knowledge and innovation: Knowledge ecosystem

Madrid, knowledge ecosystem


Knowledge and innovation: Infrastructures at the forefront of the world

Madrid is in the top 30 worldwide for technological infrastructure

Source: Digital Economy and Society Index (EU). The Global Competitiveness Report (World Economic Forum). National Observatory of Telecommunications and the Information Society

(ONTSI). Data centers Spain. World Competitiveness Center. Ministry of Energy, Tourism and Digital Agenda.

More than 90% of the population has access to ADSL and 4G networks

In Europe, only 3 countries have a 5G network development plan: Spain, Germany and UK

The first pilot project in Spain will be launched in 2018 in the Madrid Region

In Spain there are 19.2M fiber accesses installed

In Madrid, the 5G Innovation Laboratory of Telefónicaand Huawei has carried out concept tests of

communications based on 5G-V2X. Ericsson and Orange have also carried out demonstrations

The Madrid Region is a pioneer in the deployment of the 5G Network4G 5GPresent Future


Knowledge and innovation: Infrastructures at the forefront of the world

Spain will be a bridge between continents through its submarine communication nodes and is already the national leader by data centers

Source: DCD Media.

Valladolid

Junta de Castilla y León

Don Benito

Cloudgobex

Sevilla

Itconic

Albacete

Área ProjectValencia

Nixval

Sologigabit

Interoute

Tissat

Plexval

Digital Value

Alicante

Abserver Data Center

Zaragoza

RedestelIbercom

InsAsset

Interxion MAD1

Interxion MAD2

IPCORE

Itconic Madrid 1

Itconic Madrid 2

Interoute

ONO I

ONO II

Barcelona

Acens Technologies

Acer 30-32

Ackstorm

Bitnap

Centro de Datos

DC ICM

i-datacenter Green

Interoute

Itconic

Ono

Girona

Ibercom

San Sebastián

Ibercom

Bilbao

Interoute

Murcia

Sys4net

Málaga

Málaga Data Center

Data Rush It Services, SL

Cádiz

Cibernéticos CPD

Santiago de Compostela

Xunta de Galicia

Oviedo

Asac

Madrid

Acens

Adam

Bitcanal

Colt

Eurociber

Global Switch

GNET

Hispaweb Network

Iberbanda

Tenerife

Cívicos Networking Main

D-alix

405.600

Square feet in 23 operational data centers

NODOS DE COMUNICACIÓN SUBMARINOS EN DESARROLLO

MAREA

Facebook y Microsoft: comunicación a través de

un cable submarino de 6.600 km que atravesará el

Atlántico con Virginia y Bilbao en los extremos

ELLALINK

Iniciativa pública de Brasil, Portugal y España. Con

el objetivo de abrir mercados emergentes con

puntos de aterrizaje en Brasil, Madeira, Islas

Canarias y Cabo Verde antes de conectarse a

España y Portugal.

ORVAL

Respaldado por el gobierno argelino, se prevé

una ruta alternativa al norte de África con SEA-

ME-WEE 5 y AAE-1 que conecten Europa con

el noreste de África con puntos clave en

Valencia y Oran.

Submarine communication nodes in

development

Facebook & Microsoft: communication through a

6.600km submarine cable going through the Atlantic

with Virginia and Bilbao as connecting points

Supported by the Algerian Government, an

alternative route to North Africa is

foreseen with SEAME-WEE 5 and AAE-1

connecting Europe with Northeast Africa

with key points in Valencia and Oran

Public initiative from Brasil, Portugal and

Spain. With the objective of opening

emerging markets, with landing points in

Brazil, the Canary Islands and Cape Verde

before connecting them to the Peninsula.


Knowledge and innovation: Enabling environment for new technologies

Companies and homes in Madrid are a reference for the early adoption of technology, well above the European average

88

17

54

3531

35

7

24 25

13

36

4

2018

14

With ERPimplemented

Use RFDI in thedelivery process

Use 2 or more socialmedia

Execute electronicalinvoices

Use cloud computingservices

% of companies that use technological solutions

Madrid companies stand out in terms of the use of most

technological services, especially in terms of the implementation of

an ERP.

75

83

61

81

45

83

27

54 54

40

78

21

5966

34

Use Internet to play ordownload contect

Subscribed tostreaming services

Use Internet to accessto online banking

Use Internet to ordergoods and services

deliveries

Use Internet to interactwith Public Sector

% of citizens who use technological solutions

Spain is a leader in the deployment of fiber to the home (FTTH) in Europe

and Latin America. There are more fiber customers to the home in Spain

(18 million) than in Germany, the United Kingdom, France and Italy

combined.

Source: 1. Digital Economy and Society Index (UE). 2. Observatorio Nacional de las Telecomunicaciones y de la Sociedad de la Información (ONTSI). 3. INE. 4. Sociedad Digital en España 2017 .

Fundación telefónica. OCDE. Broadband Statistics.


Knowledge and innovation: Global networking center

Madrid added more than 65,500 attendees to ICT events organized by Meetup, ranking as the 6th European Region with more attendees

334.369

162.824

148.709

80.116

66.679 65.66860.641

50.888 49.87741.347

267.536

98.705

111.043

56.739

37.43645.371 49.643

32.199 35.454

25.604

219.825

64.380

85.725

40.151

25.595

27.83219.132

20.870 20.981

16.550

London Berlin Paris Amsterdam Munich MADRID Varsovia Dublin Barcelona Hamburg

Top 10 cities by number of attendees at ICT events

2017 2016 2015

Source: The State of European Tech. Atomico and Slush.

6


* Fechas orientativas en base a años anteriores

Matelec13 – 16 November

International exhibition in electronic

And electric devices

+700 stands

May

BIT Audiovisual

8 – 10 may

Audiovisual event

June

South Summit

3 – 5 October

Madrid Gaming Experience

October**

September

Talent Summit

September**

Robotics in talent management

Smart Money

September *

Robomatica

26 – 27 September

October

AI Show

October*

First conference in

AI applications

CivilDRON

24 – 25 january

Contact with all agents having

interests in dones

Salón Mi empresa

13 – 14 february

,

World ATM CongressSalón Internacional de

Seguridad (SICUR )

Finnovista Pitch Day

31 january

Meeting with key players of the

Fintech ecosystem

Startup Europe Week

AULA

Foro de inversion SitkabanApril*

startups.

Global Robot Expo18 – 20 april

Feria más importante de toda Europa en robótica.

Más de 11.000 visitantes y 45M € impactomediático en la edición anterior.

January February March April

Event presenting

startups

Artificial expo

November**

DecemberNovemberOctober

BITAM Show20 - 22 November

Event relating to audiovisual sector

In Spain and Europe

Fintech Open ChallengeNovember**

Startups contest

GamergyDecember*

Sobre videojuegos multijugador y e- .

Más de 320.000 seguidores online

8th

edition with more 300 than attendees

Connecting the entrepreneur ecosystem

5 – 9 March

+ 200 European citis celebrate this event

At the same time to Foster innovative ideas

20 – 23 February

+ 600 companies participate in the

international security event

March*

Reference event in the

education sector

Omexpo25 – 26 April

Positions Madrid as the digital capital,

meeting point between professionals

among the digital sector in Spain and

southern Europe

Most important event in robotics.

More tan 11.000 attendees and 45M€ media

impact in the last edition

Major event in the startup

ecosystem

More than 12.500 attendees

Robotics and automation

event

Reference event among

investors and entrepreneurs

Digital Business World Congress

22 – 24 May

Leading event in digital transformation

+18.000 assistents;+180 companies

230 speakers

E Show

26 – 27 September

Major ecommerce and digital

marketing event in Spain

+8.000 assistents

WOBI

9 – 10 October

CEO’s, startups, innovators

Meet in this congress to talk

About the technological impact

Big Data WeekOctober**

International conference

Reuniting experts of the sector

Madrid Mobile SummitNoviembre

Major app and gaming conference

+1.000 assistents

Impulsandotu Empresa22 November

Organized in 12 Spanish cities

Big Data SpainNovember

1 of the 3 major European conferences

About Big Data, AI and Cloud

Global Startup Weekend

November *

54H to create a startup

With mentorship and

worldwide sponsors

Go YouthOctober**

Event hosting innovators and

TIC companies

Media Startup Alcobendas

More tan 400 assistants to the last edition

Meeting between startups, innovators, and VC

June*

AI fair in Europe About videogames and eSports

More tan 320.000 followers online

Videogaming and digital

entertainment fair

With more tan 190 stands

Knowledge and innovation: Global networking center

The Region of Madrid hosts important events

*Indicative dates based on previous dates


1. A source of financing for every need.

2. Talent financing.

3. Success stories.

4. Tax system.

5. Tax support for innovation.

6. Key contacts.


Smart Capital: A source of financing for every need

In the Region of Madrid there is an important credit offer, investor appetite and a strong public support available to the investor

Source: Informe de actividad de Venture Capital y Private Equity (ASCRI). Informe Fondos soberanos España 2015 (KPMG). AEBAN. Inversión en Startups en España 2106 (CaixaBank y ASCRI).

Financiación participativa (Crowdfunding) en España (Informe Anual 2016).

In Spain, there are 62 national banks, 2 savings banks and 22

foreign banks.

48 platforms in Spain.

Spain is among the 6 countries with the highest fundraising

in Europe. 2016: 113,6M € (+116,09% regarding 2015).

42% of national investments were made by public funds. € 41M

invested in startups.

Available in all phases through the ICO.

More than 10 networks. 1 out of 3 invests in technology.

National (68%) and international (32%).

More than 390 funded startups.

Madrid main receiver of PE with 33%.

1st round VC investments in 230 startups for € 309MM

In 2016, more than € 2,270M (+ 48.5%) were raised

Corporate investment in 2016 of € 256,3m.

More than 90 funds with investments over $7bn in Spain in different

sectors.

€28,3 million invested in Spanish assets from different sectors.

FINANCIAL INSTITUTIONS

CROWDFUNDING

PUBLIC FUNDS

BUSINESS ANGELS

PRIVATE EQUITY & VENTURE CAPITAL

SOVEREIGN FUNDS


Smart Capital: Talent financing

In 2016 the funds available to invest increased their investments to 41%, reaching €4.150 millions

Source: elaboration through data from KPMG

2014

(€12.0bn)

2015

(€20.6bn)

2016

(€41.2bn)

Lo

cal fun

ds

(€

4.7

bn)

In

ternatio

nal fun

ds

(€

69

.4

bn)

Corpfin

€150m

Espiga

€140m

Muzinich

€80m

Portobello

€375m

€1.3bn

Proa

€350m

Miura

€200m

GED

€150m

GPF

€250m

€250m

Alantra

€450m

JB

€250m

Talde

€100m

Arta

€300m

Nazca

€275m

Realiza

€200m

€2.9bnMagnum

€500m

MCH

€200m

Abac

€320m

Meridia

€125m

Oquendo

€175m

Riverside

€1.5bn

Quantum

€55m

Permira

€5.3bn

H.I.G.

€1.75bn

Sun

Capital

€2.1bn

bridgepoi

nt

€4.0bn

Carlyle

€3.5bn

€4.7bn

Trilantic

€900m

PAI

Partners

€3.3bn

KKR

€3.4bn

Charme

€500m

OpCapita

€350m

Ergon

€150m

L

catterbon

€2.75bn

Partners

G.

€2.5bn

Cinven

€7.0n

€2.0bn

Investindustrial

TA Associates

Advent

€12.0bn

Apax

€7.1bn

Ardian

€4.5bn

<200m200-

500m>500m



10+ Mid-Cap active PE in Spain

Funds with more capital and more opportunities

Players increase in the “mid-market” (€100-

500M) with big amounts of capital non

depoloyed:

- PE mid-cap goals: 1operation / year

- Growing national teams as well as increased

interest of international funds in the Spanish

market

Mature market, especially in the small-cap

segment:

- This growth is observed due to the

professionalization of the sector

Size

o

f th

e m

ost re

cu

rre

nt o

pera

tio

ns (E

V)

• The Spanish market is increasing its interest in mid-cap investors

• With new entrants and more smart capital seeking for opportunities, the market will continue to grow and become more professional<€

10

0m

€10

0-50

0m

>€

50

0m

Not activeLess active

(1-3 deals)

More active

(4+ deals)

Market activity 2013-2017 YTD

(for operations won or considered "top bidder“)

Source: elaboration through data from KPMG



National and international funds have grown by volume and number of operations in 2016 and Spain has been consolidated as one of the most attractive markets for the Venture Capital

199 193288

536403

1.096

345 360 350

470 469

389

1

22

4

0

1

1

2

2

3

3

4

4

0

200

400

600

800

1.000

1.200

2012 2013 2014 2015 2016 2017

Volume and number of VC operations(€M)

Capital Invested Nº of companies/operations Average capital invested per round *

Source: StartupExplore, CrunchBase, Dealroom, Pitchbook K-Fund, Atomico. El Referente. Ascri

2012 -2013 non available*


25,7%

17,7%

10,6%11,2%

8,0% 7,8% 7,5%6,5% 6,4%

7,0%

41,5%

8,3% 8,0%7,5%

Leisure and

restoration

ICT Consumer

products

Medicine and

chemistry

Energy Prod. And

industrial

services

Finance Biotechnology Construction Other

Volume (€) Nº of projects


The companies of the Region of Madrid, 32.9% of Spain, are those that receive the highest volume of investment

Source: Elaboración propio a través de ASCRI

Private Equity investment by sector in 2016

ICT main operations

49%

17%

4%

12%

8%

4%6%

Mobile

eCommerce

Fintech

Social

Enterprise

Health & Science

Others

% of Capital

Invested by

Industry


4,60%

3,70%

16,70%

10,30%

5,00%

3,40%

3,40%

3%

33%

41,60%

28,80%

25,80%

52%

45,80%

49,90%

59,30%

5,10%

5,50%

1,20%

1,60%

2014

2015

2016

2017

% Invested capital according to the type of investor

Angel Seed Early Stage VC Later stage VC *Remaining investor types

Pre/Accelerator/Incubator

Grants

Corporate

Acquisition Financing


Besides the increase of investment by volume and number of operations, new types of investors are appearing

Source: StartupExplore, ElReferente, CrunchBase, Dealroom, Pitchbook K-Fund, Atomico.

Fuente: Elaboración propia con datos de StartupExplore, ElReferente, CrunchBase, Dealroom, Pitchbook K-Fund, Atomico.


Smart Capital: Success stories

The volume increase is due to the maturity and solvency that is acquiringthe Spanish market

Source: Elaboración propia con datos de StartupExplore, ElReferente, CrunchBase, Dealroom, Pitchbook K-Fund, Atomico.

2013 2014 2015 2016 2017

Financing rounds exceeding 10 million Euros


Smart Capital: Success stories

The exits, each year of greater volume, are a good example of the talent bet done by the Region of Madrid

Source: Elaboración propia con datos de StartupExplore, ElReferente, CrunchBase, Dealroom, Pitchbook K-Fund, Atomico.

2006 2008 2010 2012 20142007 2009 2011 2013 2015 2016 2017

Main Exits


Source: KPMG Tax Rates Online.

Smart Capital: Tax system

The Region of Madrid fiscal system is very competitive compared to other advanced regions

22% 22%

38%36%

21%25%

45%

36%

19%

30%

45%

40%

20% 19%

45%

15%

20%

33%

49%

68%

23%

13%

48%

15%

Indirects Corporate Individual Social security

Comparative tax charges for European markets

EU Average Spain Germany UK France Ireland


Individual residents:

- Residence: based on a 183-day test

- Taxable income: worldwide

- Tax rates:

- General income: progressive: 45%

when above € 60,000

- General income: progressive: 23%

when above € 50,000

- Social security:

- Employer: general risks: 23,6%;

unemployment insurance: 5.5%; wage

guarantee fund: 0.2%; professional

education: 0.6%

- Employee: general risks: 4,7%;

unemployment insurance: 1,55%;

profesional education:0,1%

- Self-employed worker: 29,8%

Non Individual residents:

- Tax rates: business and employment income:

24%; 19% for EEE residents (as well as

Iceland and Norway)

- Capital gains from the sale of shares in

resident companies: 19%

- Capital gains from the sale of real estate :

19%

- Tax withholding rates:

- Income by employment: 24%

- Dividends: 19%

- Interest: 19%, 0% if paid to EU

residents

- Royalties: 24% (19% in 2016 for

residents of the EEE)

- Fees (technical): 24% (19% in 2016 for


- Fees (directors): 24% (19% in 2016 for


Direct taxes to non-resident companies:

- Capital gains from the sale of shares in

resident companies: 19% (exempt if derived

from EU residents and countries with which a

double taxation agreement has been signed)

- Capital gains from the sale of real estate: 19%

Direct taxes to resident companies:

- Yes, as part of the benefit

Source: IBFD Tax Research Platform. Hacienda Doble Imposición


General tax in Spain

Taxes for non-residentsTaxes on capital Taxes for expatriates


Source: http://www.madrid.org/cs/Satellite?cid=1142345247551&language=es&pagename=Contribuyente%2FPage%2FCONT_Impuesto


IRPF in Spain and in the Region of Madrid The Personal Income Tax (I.R.P.F.) is a state tax that taxes the income obtained by natural persons who during the calendar year had, in

general, their habitual residence in Spain, taking into account their personal and family circumstances. The management, liquidation,

inspection, collection and review of acts in the process of management of the I.R.P.F. corresponds to the State. However, the Region of

Madrid may assume regulatory powers over:

a) The amount of the personal and

family minimum applicable for the

calculation of the regional tax.

b) The regional scale applicable to the

general payable base.

c) Deductions for:

- Personal and family circumstances

- Non-business investments

- Rental application

Provided that they do not entail a

reduction of the effective encumbrance

of some income categories.

- Subsidies and public subsidies not

exempt that are received from the

CCCA, with the exception of those

that affect the development of the

economic activities or the incomes

that are integrated into the savings

base.

d) Increases or decreases in the

percentages of deduction for investment

in habitual residence.


Smart Capital: Tax support for innovation

Spain is a pioneer in the application of a “patent box”

Source: Articulo 23 de la LIS 27/2014

REDUCTION OF THE TAXABLE BASE IN 60% OF THE INCOME FROM THE

ASSIGNMENT

Technological intangibles

o Patents

o Formulas

o Blueprints

o Designs

o R & D

o Pharmaceutical dossier (excluding

computer programs)

Terms

o Originator of the intangible at least

25%

o Assignee uses the rights for an

economic activity

o Assignee does not reside in territory

of no taxation

o Differentiate the cession of the use

of the provision of accessory

services

o Have accounting records to

determine income and expenses

Non-technological

intangibles

o Know-how

o Commercial experience

o Industrial experience

o Scientific experience (excluding

brands, literary, artistic,

cinematographic films, image rights)


Smart Capital: Tax support for innovation

Spain occupies the 15th position worldwide by investment in R & D & I

Source: Articulo 23 de la LIS 27/2014. https://www.f-iniciativas.es/incentivos-fiscales-la-idi-en-europa. R&D Magazine.

R&D REDUCTIONS

Investigation and

development

o 25% of the average of expenses of

the previous 2 years

o 42% of the excess over the average

o 17% additional for personnel

dedicated exclusively to R & D

o 8% additional for investments

affected to R & D

Terms

o Personal expenses

o Collaborations with third parties

o Costs of raw materials, consumables

or consumables

o Amortization of fixed assets

o Other expenses directly related to

the project

Technological innovation

o Know-how

o 12% of the expenses related to the

project

o Includes projects related to animation

and videogames


Public Funds

CDTI

National aid for SMEs and large

companies, programs and funds

focused on the ICT sector, such as

Innvierte

www.cdti.es

Smart Capital: Key contacts

Madrid has a wide range of financing alternatives

ENISA

National help for innovators

www.enisa.es

RED.ES

Momentum and digital

transformation programs

www.red.es

COFIDES

Investment programs in the ICT

sector

www.cofides.es

ICEX

Funding programs for

internationalization

www.icex.es

AVALMADRID

Financing lines for entrepreneurship

and technology

www.avalmadrid.es

AYUNTAMIENTO DE MADRID

Aid to improve Madrid business

network

www.madrid.es

MINISTERIO DE HACIENDA Y

ADMINISTRACIONES PÚBLICAS

Fiscal deductions and ICT funding

programs

www.minhafp.gob.es

Private Equity / Venture Capital

ASCRI (Asociación Española de

Capital, Crecimiento e Inversión)I

Non-profit organization that

represents the private capital

industry (PE & VC) in Spain.

www.ascri.org

PAEBAN (Asociación de redes de

Business Angels de España)

Association dedicated to promote

the activity of the Business Angels in

the Spanish territory.

At present, AEBAN groups 38

Business Angels networks

distributed in 11 Autonomous

Communities. These networks have

nearly 2,000 investors who in the

last year mobilized resources worth

40 million €.

www.aeban.es

Business Angels


Region of Madrid: Where days are longer

In Madrid, more than 2.760 hours of sun per year

1st

By its cultural offer

There are more than 100

museums, among them Reina

Sofia, Thyssen and Prado

Museums

By its commerce

The second favorite city to go

shopping

By its gastronomy

Madrid Fusión positions Madrid as

the capital of gastronomy

By its healthcare

There are 86 public and private

hospitals that confirm the quality

of the health service

By its diversity

In the Region of Madrid there are

more tan 100 different cultures

By its location

Madrid city center is 150KM away

from the mountains (Sierra de

Guadarrama)


Region of Madrid: Where days are longer

Express Visa available to investors

Source: ICEX

Who has facilities to settle in Spain?

Investors

Entrepreneurs

Highly qualified professionals

Scientists and researchers

Employees of multinationals

General requirements

Not be in an illegal

situation

> 18 years old

No record

Have health

insurance

Have economic

resources

How is the process?

There is only one permit to reside and

work in Spain

10 days 20 days

AuthorizationsVisa

Residence

permit

The family of the interested person

has the possibility to apply for the

visa at the same time


www.investinmadrid.com

C/ Ramirez de Prado 5bis

28045 - Madrid, Spain

+ 34 91 310 59 90


Strategic approach

Identification and access to information for the business

Advice on applicable incentives and grants

Location advice for the establishment

Legal and intellectual property advice

Information on administrative processes

Assistance w/ Public Admin

Connection with industrial, regulatory, planning and

financing institutions with AAPP

Advice on tax and real estate solutions

Accompaniment and guidance regarding the private

sector

Operational approach

Support in the dialogue with the AAPP

Access to the best available resources (human capital,

infrastructure, etc.)

Information on incentives and grants

Periodic correspondence

Project settlement

Search of offices and industrial spaces

Establishment of a business in Madrid and Spain

Guidance and advice on aspects such as visa, housing,

contracting services and taxation

Strategic approach

Contact with Government about policies Information and

advice on the regulatory framework and legislative changes

Network of contacts to take advantage of business

opportunities

New investors Established investors

ADVICE ACCELERATION ASSISTENCE STRATEGIC

APPROACH

OPERATIONAL

APPROACH

PRELIMINARY STUDY IMPLEMENTATION AFTERCARE

Invest in Madrid: Where everything is possible

To serve investors


ADVICE ACCELERATION ASSISTENCE STRATEGIC

APPROACH

OPERATIONAL

APPROACH

PRELIMINARY STUDY IMPLEMENTATION AFTERCARE

OPERATING FLOWINVESTORS AND

ADVISORS

AGENCY AND

MEETING SPACES SETTLEMENT

Investor search (co-investment

and / or secondary operations)

Advice in consulting services

companies

Stakeholders contact

Meeting spaces at Invest in

Madrid offices

Provides necessary information

for the business: economy,

financing networks, business

network, events, taxation and

regulation

Agreement according to

investment strategy

Goal pre-selection to

guarantee viability and

business potential

Advice and support in the

implementation of the

business

Help in operational terms,

infrastructure and labor

INFORMATION

Invest in Madrid: Where everything is possible

To serve investors


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