Why Valencia

Siemens, HP, Hitachi, Toshiba... Why big tech firms are choosing Valencia

Valencia is on the map of big tech multinational companies. In just a few months, our city has been chosen as the destination for firms such as Siemens, HP, Hitachi, Toshiba and even the UN to open new headquarters from which they will drive innovative and strategic projects. 

Considering that almost simultaneously with these arrivals, massive redundancies were happening in Silicon Valley at companies such as Google, Facebook, Twitter and Netflix, the fact that big tech companies such as these are betting on Valencia in their future plans becomes particularly relevant, thus consolidating the position of our hub as the third most innovative region in Spain.

What are the big tech firms that have settled in Valencia?

Among the tech giants that have chosen Valencia to open their work centres, the following corporations stand out:

• Siemens

The German multinational has opened its new 'Sustainable Mobility Technology Centre' in the capital of our digital ecosystem. The aim of this division will be to "operate in the fields of Engineering and Software Development, focusing on the creation of new sustainable mobility technologies and focusing on innovation and digitisation", as announced by the company itself in a statement, where it also reports that it has an extensive hiring process underway with which it hopes to reach 150 employees in the first installation phase.

As part of Smart Mobility Valencia, the smart and sustainable mobility event promoted by the Automotive Cluster (AVIA) and now in its second edition, Siemens Mobility officials clarified that their new centre will specialise in signalling for rail transport, as the company seeks to "promote public transport through the combination of data and technology to help make cities more friendly", in the words of Karolina Korth, its Director of Strategy.

• Toshiba

Beyond its activity in consumer electronics, where the Japanese company is dedicated to the manufacture and marketing of various devices and terminals, Toshiba Mitsubishi-Electric Industrial Systems Corporation (TMEIC) is one of the world leaders in the automation and control of port machinery. 

In their more than 1,000 square metres on Avenida de Cortes Valencianas, they will work on advanced artificial intelligence tools such as automatic image identification and optical character recognition (OCR). "We want it to be a benchmark for our employees and to give us visibility to our global customers," said Francisco J. Grau, Managing Director at TMEIC Port Technologies, in reference to their new workplace in Valencia.

• Hitachi

Another Japanese multinational that is strengthening its presence in Valencia is GlobalLogic, a Hitachi subsidiary specialising in advanced software development. The Japanese firm acquired the Valencian startup Photonics, which specialises in the development of photonic microchips, in 2020. Now it will open new facilities where it will relocate part of the employees it had in Ukraine until the activity in the Eastern European country was affected by the start of the war and, together with the new hires, it is expected to exceed one thousand jobs.

• HP

Also in the field of software development, Valencia will have a new global technology giant in the form of HP, a partner of Startup Valencia. From its base in Valencia, the firm will promote the development and innovation of software for industrial sectors with the aim of facilitating their automation and digital transition.

Aware of the importance of attracting talent, the multinational has aligned with the Universitat Politécnica de Valencia (UPV) to promote a chair that will train professionals in the field of IT with knowledge in the development of Cloud Applications, Artificial Intelligence and Software Quality. 

• United Nations

The very United Nations organisation itself, which for a decade has had a headquarters in the Valencian town of Quart de Poblet that was recently expanded, will strengthen its presence in our digital ecosystem with the opening of an innovation and computing centre located in La Marina. There are only UN facilities of this kind in New York, Rome, Geneva and Brindisi.

• Hyperion Group

The so-called 'Silicon Valley of Belgium' belonging to the parent company Cronos Groep, joins the list of major tech companies that choose Valencia as a gateway to their activities in Spain and southern Europe. Cronos Groep has almost 8,000 employees worldwide, and Hyperion, which has several companies under its umbrella, has 400, with the goal of doubling that figure. Among their most common services are digital marketing, digital customer relationship management and administration at all levels, targeted advertising campaigns for digital media, and data integration at all levels. 

• Lufthansa

The saying 'every company is a media company', which refers to the constant need to communicate what companies have, needs to be updated to 'every company is a digital company'. What is an airline doing among so many tech companies? The reality is that no self-respecting multinational is immune to 'digital', as is the case with the German firm and its subsidiary Aviatar, recently installed in Valencia.

Aviatar is Lufthansa's independent platform for digital products and services, offering users digital products such as predictive maintenance (very useful in preventing machine failure, among other use cases), fleet management solutions, process automation, etc.

• Volkswagen

And from an airline to a car manufacturer. Indeed, the automotive industry is set to be the sector that will undergo the greatest revolution during this and the next decade, with the electrification of cars. It is said that 'America was built on cars', referring to the expansion of the American economy in the early 20th century, coinciding with the start of assembly line manufacturing.

It is not surprising that the automobile industry has a great economic impact, and that of Volkswagen's gigafactory in Sagunto is estimated at 8,000 million euros. The high specialisation and concentration of Valencian microchip companies has been one of the keys for the German manufacturer to settle in Valencia through its subsidiary PowerCo Spain, which will manage from the capital of the Turia the six European gigafactories that Volkswagen plans to open.

Why do big tech firms choose Valencia?

It cannot be a coincidence that all these large corporations settle in our city in less than a year with strategic projects in many cases.

If we review the statements and press releases that some of them have made to announce their arrival in Valencia, we detect three key factors in their decision making that form a virtuous circle:

1) Talent

Money and investment go where the talent is because it allows them a higher degree of efficiency and return. And when it comes to tech companies, technical talent is at a premium. This is recognised by some of the aforementioned companies, such as Siemens Mobility, that highlighted the "reputable universities" that exist not only in Valencia, but throughout the Valencian Community, and which constitute a pipeline of diamonds for these corporations.

To give a revealing fact, in studies such as Computer Engineering there is a 100% employability rate two years after completing the degree. This talent, with the arrival of these corporations, has more opportunities for quality employment due to the high competition for its recruitment.

2) Quality of life

The climate, safety, cultural and leisure offerings, value for money, etc. are factors that make up a high quality of life, which acts both as a lure for new talent and an anchor for existing talent. Valencia is "the best city in the world to live in", according to the vast majority of foreign talent settled in our city.

3) Future of the ecosystem

When you bring together talent and quality of life, and you have also laid the foundations for a dynamic ecosystem over the last 10 years by aligning the interests of startups, investors, accelerators, business schools, universities, and other key pieces of this ecosystem, the future is bright, and the return is exponential. 

This is why more big tech startups are considering Valencia as the next destination in their expansion plans.

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by Sara Sanjuan

Valencia, the best city in the world for expats to live and work in 2022

The city of Valencia is constantly winning accolades that reflect its welcoming and friendly nature. This time it is the InterNations Expat City community that has crowned the capital of the Turia River the best city in the world for expats to live and work in, a nomination which has been echoed by prominent international media outlets such as Forbes and Bloomberg.

In this ranking, Valencia finished ahead of major world capitals such as Dubai and Mexico City, and in Europe it beat cities such as Lisbon and Madrid.

To compile this list, InterNations surveyed nearly 12,000 people of 177 nationalities from 181 countries to share what it is like to live and work in a foreign country. Their responses were used to establish an index based on their satisfaction across several key aspects, including ease of settling in, quality of life and cost of public transport.

Valencia topped the list for being a liveable, friendly and affordable city. According to InterNations, expats "describe public transport as affordable and love the great opportunities for recreational sports". In addition, 92% of respondents say they feel safe in the city, compared to the city average of 81%.

When it comes to the ease of settling in, respondents say they “feel at home and are happy with their social life". They also rate positively the cost of living in the city and how it affects their personal finance index.  

This recognition for the capital of the Valencian Community comes just a few months after it was named the healthiest city in the world to live in by the British platform Money.co.uk, an accolade it has won for the second year in a row.

Best and worst European cities for expatriates

Lisbon, Madrid and Basel are the other three European cities in the top 10 best cities for expats. The Portuguese capital is in fourth place, followed by Madrid, and Basel is seventh. 

Five European capitals find themselves at the bottom of the ranking of worst destinations. The worst city in Europe is Frankfurt, placed 49th in the ranking, due to its poor administrative and digital services. In addition, expats consider it to be an expensive and unwelcoming city. Paris scored poorly for its high cost of living. Also in the top 10 worst destinations are Hamburg, Milan and Rome.

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by Nacho Mas

Foreign entrepreneurs are moving to Valencia to scale up their startups

More and more foreign startups and tech companies are choosing the Valencian Region to grow their businesses. For instance, Startup Valencia has 21 members from outside Spain.

Originating mainly in Europe and South America, these companies have seen the Valencian Community as a destination for their investment. Among the reasons for choosing this region is the fact that it is now the third tech hub in Spain, only behind Madrid and Barcelona, as well as the open innovation space where startups and corporations connect and evolve together.

As Juan Luis Hortelano, president of Startup Valencia, explains: "the Valencian Community is a great enclave for the tech and innovation ecosystem, which is why we seek to encourage foreign startups to settle here. Valencia has become the ideal setting for tech entrepreneurs looking for a place to develop their ideas and scale their businesses”. 

The maturity of the ecosystem and a solid financial and technological structure are attractive values for talent and entrepreneurship. Added to this are the climate and quality of life offered by the region. As Gillian van Loenhoud, head of “People and Culture” at Yobbers, a Dutch startup based in Valencia, points out, all these ingredients are a magnet for companies. "The reason we decided to come to Valencia, apart from all the advantages the city has, is to meet interesting people in the ecosystem," he says.

Eve Pattison, CEO of Big Translation, a Corporate Partner of Startup Valencia, shares the same view: "the Valencian ecosystem welcomes you, regardless of your nationality, and makes you feel supported. It's an ecosystem where you really notice how they help each other".

In order to make the setting-up of these companies in the Valencian Community easy and pleasant, Startup Valencia has developed an accompaniment programme. Through the Soft Landing programme, these companies are provided with information and connections with agents in the Valencian tech and innovation ecosystem that will enable them to obtain help in the form of legal advice, public aid, acceleration programmes, basic documentation, administrative procedures, workspaces and accommodation, among others. The aim is to provide them with an easy "landing" so as to allow them to focus completely on developing and scaling their business.

This is an assistance that entrepreneurs value positively. "With Startup Valencia it’s the first time we have felt helped by the ecosystem as expats", explains Stefano Scardia, CEO and co-founder of Colibid.

Startup Valencia has created an Expats working group that aims to foster cooperation between foreign companies based in the Valencian Community. If you are interested in joining this group, please write to hello@startupvalencia.org.

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by Marta Gironés

Why Valencia is the best city in the world for entrepreneurship

By 2030, cities will be home to more than two thirds of the world's population. The concept of a 'city' is changing meaning and the model that gathers the greatest consensus is the one that puts emphasis on innovation, sustainability and wellbeing: three powerful magnets to attract talent that are a must for any city aspiring to become a renowned entrepreneurial hub and are very present in Valencia's value proposition to be one of the best cities in the world for entrepreneurship, if not the best.

Why Valencia is already a top destination for startups and talent

The shock of the Covid-19 pandemic accelerated trends that today are the norm, such as remote working. However, if there is one thing that the health crisis has really brought to light and is especially visible in the startup world, it is that talent seeks flexibility, opportunities and a good quality of life. This context represents a historic opportunity for Valencia and the Valencian Community in its plan to consolidate itself as an internationally recognised tech and innovation ecosystem. "We have all the ingredients," wrote Nacho Mas (CEO of Startup Valencia) recently in Levante-EMV. 

The most crucial of all is talent, there is no doubt about it. If we look more to the west, where most of the trends that end up being passed on to the rest of the world are started, Silicon Valley is immersed in what has been dubbed 'The Great Resignation'. This mass and voluntary exodus of professionals resigning from their jobs is indicative of a paradigm shift. 

A LinkedIn survey sought to find the causes of this unprecedented renunciation and the results were overwhelming: three out of four respondents acknowledged that they were rethinking their work life because of the lockdown, with stress and burnout serving as a backdrop. Talent, from now on, will be concentrated where there is flexibility, good work-life balance and good quality of life, because it is also mobile, ready to take risks and willing to change scenery.

Undoubtedly, it is time to open the doors wide to those who are not here and to motivate and activate those who are already here to start up new business initiatives.

A city with unbeatable quality of life seeks talent

Valencia's value proposition in terms of quality of life is probably the best known side of the ecosystem. The city has been chosen two years in a row as the 'World's Healthiest City' for a variety of factors such as the life expectancy of its inhabitants, healthcare costs, low air pollution, safety, average temperature and hours of sunlight. Moreover, there is a will to go further in this regard with the entry into the European network of climate-neutral cities. 

In this search for a better quality of life, aspects such as leisure, culture, gastronomy, nature and sport are also relevant. The fact that the city welcomes tourists all year round allows it to show a more relaxed side that appeals to the basic human pleasures and serves as a gateway for talent to discover it. 

With this magnetism, the more than 3,500 engineers and developers who graduate each year from Valencian universities will be joined by foreign talent at the ecosystem’s disposal.

Talent in search for opportunities to develop

Attracting talent is one of the ingredients, but not the only one. There is little point in attracting talent if it is not offered a network that allows it to develop. To this end, it is essential to have:

• Community. A dynamic catalogue of events and spaces in which to encourage networking and help talent find itself. In addition to this, an international mindset that facilitates integration, or as Eloi Gómez (Jeff) would say: "Let the city breathe more English".
• Knowledge. Training programs that allow talent to learn and improve with the help of professors, researchers, and mentors. This applies not only to universities, but also business schools, accelerators, incubators, bootcamps, etc.
• Companies. A wide and varied pool of companies that represent an opportunity both for talent that decides to start a business and for talent that seeks to develop a professional career.

Valencia, as the third tech hub in Spain and boasting €600 million in investment rounds in the last five years as well as the first Spanish listed company on the Nasdaq, can lay claim to these ingredients.

Where there is talent there is money; the corporate world and venture capital are increasing their presence in the city and exploring alliances with the entrepreneurial ecosystem, making Valencia the leading ecosystem in terms of quality and number of open innovation programmes between corporates and startups. 

Proof of this are programmes such as Global Omnium's GoHub for open innovation in deep tech, Plug and Play Tech Center as an open innovation platform with its European back office in Valencia, PlayStation with Lanzadera, and CaixaBank with Innsomnia. On top of these are several initiatives with important links to Valencian startups such as Wayra, Telefónica's open innovation programme, Elewit as a technological and innovative platform of the Red Eléctrica Group, Decathlon Open Innovation and its 'Supported by Decathlon' programme aimed at sports tech, retail tech and data tech startups applied to the sports industry, Banco Sabadell's BStartup with its open and collaborative innovation model, and all that is to come with the Volkswagen gigafactory for the development of electric batteries and the high level of specialisation in verticals such as health, mobility, fintech, and water; all of which were recently echoed in the magazine 'Emprendedores'.

The numbers paint the picture described above. The volume of scaleups in Valencia is evidence of its maturity, as is the consolidation of tech events such as Valencia Digital Summit. So this year its fifth edition in the City of Arts and Sciences, or the association itself, with more than 300 members and 25 partners.

As an example, Valencia will be one of the stops made by YCombinator - the most prestigious accelerator in the world - on its tour of Europe. Also, if we look at some of the latest rounds of local startups, we see figures such as Internxt's €40M, Sesame's €10M or ClimateTrade's €7M. The opening of the old maritime station in 2023 will provide an even bigger boost to the ecosystem.

To sum it up, as the manuals on presentations dictate, and borrowing the metaphor of Caroline Lagergren (ExpandToSpain.com): Valencia is an unsurpassable base camp for entrepreneurial talent looking for good quality of life and career development opportunities.

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by Sara Sanjuan