Southern Europe’s burgeoning tech scene has received a major boost, as five standout scaleups from the region secured places in the final round of TECH5 — an elite competition often referred to as the “Champions League of Technology.”
The announcement marks a significant milestone for Europe’s Mediterranean economies, long overshadowed by Silicon Valley’s dominance and the tech giants of Berlin, London, and Paris. With a surge of innovative talent and investment, Southern Europe is fast becoming a serious contender on the global stage.
TECH5, organised annually by TNW (The Next Web) in collaboration with Adyen, is considered one of the most prestigious competitions for fast-growing technology companies. Past winners have included now-household names such as Revolut and Deliveroo.
This year, a record number of entries from Spain, Portugal, Italy, and Greece demonstrated a seismic shift in Europe’s innovation map — a shift underpinned by a wave of startup-friendly policies, post-pandemic digital transformation, and the growing appetite of international investors.
Of the hundreds of companies that entered from across Europe, five Southern European firms have been named among the elite finalists, representing industries ranging from fintech to greentech and artificial intelligence.
Their success is being hailed as a sign that the Mediterranean is no longer merely a playground for tourism and agriculture, but a rising technological powerhouse.
Historically, startups from Southern Europe have faced a raft of challenges: fragmented markets, limited access to venture capital, and bureaucratic hurdles that often stifled early-stage innovation.
Yet, in recent years, these nations have embarked on an aggressive campaign to modernise their economies. Governments have introduced attractive tax incentives for tech firms, overhauled corporate regulation, and poured EU recovery funds into digital infrastructure.
Meanwhile, the rise of remote work and global funding platforms has allowed entrepreneurs in Lisbon, Barcelona, and Milan to access the same resources previously reserved for their northern counterparts.
“It is a new era for Southern Europe,” said Maria Sanchez, a technology analyst at Eurtech Insights. “Talent was always there. What changed is the ecosystem finally matured — and global investors are paying attention.”
Among the standout finalists is Spain’s NeoBankia, a fintech innovator targeting the underbanked populations of Latin America and southern Europe. Its lightning growth — more than tripling its user base over the past 18 months — has made it a darling of international venture funds.
Portugal’s Greenpulse has also captured attention with its cutting-edge solar energy management systems, offering decentralised energy solutions for rural and island communities.
From Italy, MedicAI, a healthtech platform using artificial intelligence to expedite diagnostics in overstretched hospitals, is set to make waves in global markets, particularly across Africa and Southeast Asia.
Meanwhile, Greece’s ShipSwift is revolutionising e-commerce logistics in the Eastern Mediterranean, creating a much-needed bridge between Europe, Africa, and the Middle East.
Completing the Southern surge is Barcelona’s CodeVibe, a next-generation software company focused on AI-assisted coding platforms, enabling companies to dramatically speed up software development times.
Each company reflects not only technical brilliance but also a clear-eyed focus on real-world problems — an approach many tech analysts see as a key competitive advantage.
The success of these firms in the TECH5 competition comes at a moment of broader realignment within Europe’s technology scene.
While London remains Europe’s largest startup hub and Berlin and Paris continue to dominate venture capital flows, regional hubs like Lisbon, Barcelona, and Milan are seeing explosive growth. In 2024 alone, venture investment in Southern European tech startups rose by 38%, outpacing the European average.
In Lisbon, tech employment is growing three times faster than the national average, while Barcelona’s 22@ Innovation District has expanded to host over 1,500 startups and tech firms.
“It’s a story of resilience and reinvention,” said Luca Benedetti, a Milan-based venture capitalist. “Southern Europe is proving that you don’t need to be in London or Silicon Valley to build world-changing companies.”
For the finalists, TECH5 offers more than bragging rights. Winners will gain access to a global network of investors, partners, and mentors, alongside critical exposure at TNW Conference later this year.
Even for those who don’t ultimately lift the trophy, the recognition already opens doors to international partnerships and funding rounds that could supercharge their growth.
As Europe navigates a new era marked by technological rivalry with China and the United States, the rise of Southern Europe’s tech titans could help ensure the continent remains a critical player on the global innovation stage.
And if the momentum continues, it may not be long before the Mediterranean is as famous for its unicorns as it is for its beaches.
