The number of companies in the main Xtech sectors fintech, proptech, insurtech, regtech, legaltech, wealthtech grew by 67% in Spain last year. Ranking among the fastest growing in the world.
The number of Xtech companies that arise each year does not stop growing. These companies are revolutionizing everything. And thus, becoming the engine that drives disruption in multiple sectors.
Growth of the six sectors
According to the report, published by Finnovating, at the beginning of 2019 Xtech companies in the Spain grew fast. Of the 1,072 companies in the fintech, proptech, insurtech, regtech, legaltech and wealthtech sectors, there is 67% more than in January 2018, when there were 641 companies. Finnovating reports that its growth has been one of the largest in the world. In addition, it predicts that these six sectors could grow up to 65% in the next 12 months.
The report emphasizes that the Xtech industry generates about 17,000 direct quality technological jobs with high digital skills. And this figure could increase this year to 28,000 jobs. However, it warns that, in order for growth to materialize, it is essential that an environment be created that bets on these sectors.
Finnovating highlights that Spain occupies the second position of the whole of Europe and Iberomérica in terms of the number of fintech, insurtech and regtech, with more than 600 startups and scaleups in total, second only to the United Kingdom. Although it points out that there are countries much more advanced by size and volume of investment, such as Germany, France, some Nordic countries or Brazil.
The investigation details that the fintech sector has 337 companies. And it is with a growth of 15%. The study emphasizes that at the beginning of the year a creation of 4,500 jobs was expected for the current year. But it is possible that the impact of the future sandbox fintech will increase this forecast. Most of these companies are located in Madrid (55%), Valencia (21%) and Barcelona (12%).
Proptech has positioned itself as the second sector in size. This is with, accounting for 268 scaleups and startups, thanks to the 43% growth of the last year. The highest recorded in all Xtech sectors. In 2019, it is predicted that 2,500 employees will be incorporated. Almost all the proptech are located in Madrid (46%) and Barcelona (30%).
The financial year 2018 was for consolidation for the insurtech segment. Which now totals 185 companies. This sector expects to incorporate 1,500 new employees in 2019. 40% of the companies are located in Madrid, while Barcelona receives 11%.
Regtech already has 108 companies, with a growth of 37% in the last financial year. The report points out that this ecosystem impacts on regulatory compliance. Which is one of the areas of greatest investment in the financial sector. For this year, it is forecast that 1,000 new jobs will be created. 41% of the regtech is in Madrid, while Barcelona gives 27% shelter.
In addition, the study indicates that in 2018 we have seen the legaltech and the wealthtech mature. The first focus on the digital transformation of law firms, legal firms and legal departments of large companies. There are already 122 legaltech companies, 22% more than at the end of 2018. It is estimated that the sector will add 1,000 more workers throughout the year. Most of these companies are based in Madrid (32%) and Barcelona (30%).
And in wealthtech with the asset management and savings and technology it has 94 initiatives. It is expected that 500 jobs will be created in this segment in 2019. Almost two thirds (63%) of these companies are in Madrid.