Inside Biscay's startup ecosystem: Industrial strengths, public investment, and deeptech ambition

Biscay, a region in Spain's Basque Country, is harnessing its industrial heritage to create a thriving startup ecosystem. The area focuses on biotechnology, advanced manufacturing, energy, and emerging technologies, attracting public investment and collaboration between businesses, research institutions, and government agencies. BIOSPAIN 2026, a recent event in Bilbao, showcased the region's approach to supporting startups and highlighted its advantages and challenges.

Biscay boasts over 300 companies, 20 research centers, four universities, and leading hospitals, generating more than €9.4 billion and supporting 62,000 jobs. The region is a major hub for the Basque Country's life sciences sector, contributing to 45% of its companies and 56% of its revenues. Over 135 life sciences companies employ more than 27,000 people and generate €5.2 billion in revenue, with strengths in biomanufacturing and advanced therapies.

Investment in various sectors, including biotechnology, aerospace, advanced manufacturing, renewable energy, and robotics, is on the rise. A significant bioscience and healthcare project, led by I+Med, will receive €72 million in investment over three years, including €28 million for research and development, potentially creating over 600 jobs.

The region offers a competitive tax regime and financial incentives, such as a 35% personal income tax deduction for investors in innovative companies, 50% exemption on capital gains on exit, and up to 70% tax deductions for R&D activities.

Specialist infrastructure, including the Energy Intelligence Centre, Basque Hydrogen Corridor, Automotive Intelligence Centre, and Bizkaia Quantum Advanced Industries initiative, supports the region's deeptech ambitions. Biscay's approach to startup support involves collaboration between public organizations, each contributing unique expertise and resources.

BEAZ, the economic development agency, works alongside Seed Capital Bizkaia, Lantik, the Provincial Council's technology company, and BEAZ to provide comprehensive support tailored to the needs of companies at different stages of development.

Grants of up to €60,000 are available for early-stage validation, with €85,000 provided for incorporating and establishing businesses. Seed Capital Bizkaia, the provincial government's venture-capital company, offers financing through loans and equity investment, typically contributing around 40-50% of a funding round while private investors cover the remainder.

The region's crowdfunding platform, launched in 2019, allows local investors to support innovative businesses with positive environmental or social impact, funding rounds ranging from €100,000 to €200,000.