Five standout scaleups from Southern Europe have reached the finals of TECH5 — the “Champions League of Technology.” They’ll now face off with rivals from across Europe to be crowned the continent’s hottest scaleup.
Southern Europe’s digital scene is still maturing — but growth is accelerating. Deep talent pools and academic strength are now backed by rising support from investors and policymakers. These developments have strengthened the foundations for building scaleups.
Our contingent from Southern Europe was scouted from seven countries: Andorra, Cyprus, Greece, Italy, Malta, Portugal, and Spain. Each of them experienced substantial growth in their tech sectors last year.
Spain’s sector was projected to grow by 5.8%, Andorra’s by 12%, and Malta’s by 18%. Portugal, meanwhile, saw its startup ecosystem expand by 16%, with deals up 24% and investment skyrocketing by 148%.
In Cyprus, a tech boom boosted the economy by €7bn, while Greece’s startups attracted over €555mn in investment — 15% more than in the previous year.
Across the region, scaleups are now emerging in growing numbers. Yet only five of them could make it into TECH5. After analysing their growth, impact, and future potential, our judges selected a first-rate quintet. In no particular order, here they are.
1. Multiverse Computing
Spain’s Multiverse Computing blends two of today’s hottest technologies: AI and quantum computing.
The scaleup applies quantum and quantum-inspired AI to solve complex problems across industries. Founded in 2019, it first gained attention with Singularity, a platform applying quantum algorithms to numerous optimisation and AI challenges, such as managing electricity grids and investment portfolios.
More recently, the company has been tackling the huge energy demands of AI. Its solution, CompactifAI, delivers compressed versions of leading LLMs. Last month, the scaleup announced an 80% compression of two Meta Llama models with minimal precision loss.
“Multiverse Computing aims to be the global leader offering compressed AI models for industries to benefit from cost and energy-efficient AI,” Multiverse Computing told TNW.
Investors are backing the vision. In an oversubscribed round last year, the company raised €25mn and tripled its valuation to €100mn. More funding followed, including €67mn from the Spanish government. President Pedro Sánchez praised Multiverse Computing as a successful use of EU funds.
2. 1000farmacie
One of three Italian scaleups in TECH5, 1000Farmacie is the country’s leading e-pharmacy. Through a network of independent pharmacies, the scaleup offers a diverse range of health and wellbeing products. The platform supports customers throughout the purchasing process, from finding the best prices to providing consultations and delivering over 100,000 products.
Founded in 2020, the Milan-based business brings pharmacies online with minimal effort, enabling them to quickly sell their products.
Last year, the company took second place in the Sifted 50: Southern Europe Leaderboard — a ranking of the top 50 startups in the region with the strongest revenue growth over the past three financial years — after hitting a compound annual growth rate (CAGR) of 333.10%.
“Our ambition at 1000Farmacie is to revolutionise healthcare access in Italy by making it more convenient and patient-centric,” the company told TNW. “We believe technology can bridge gaps and improve lives.”
3. Coverflex
Portugal’s Coverflex wants to improve how companies compensate their people. The Braga-based scaleup offers an all-in-one platform for managing every employee benefit, from expenses and insurance to meal allowances and childcare. By simplifying the process, the system can increase retention, boost productivity, and cut admin costs.
Companies can customise the benefits they offer, while employees manage everything through one card and app.
Founded in 2019, Coverflex has worked with over 11,000, including Revolut, Volvo, and Santander. According to the scaleup, clients save an average of €1,000 per employee.
The company has raised over €20mn, including €15mn in Series A funding in 2023. CEO Miguel Amaro said the round confirmed that “our focus on adapting human resources processes to the current demand for a more personalised compensation experience is more than relevant today.”
4. Smartness
Italy’s Smartness aims to turn hotels, B&Bs, and rentals into “revenue powerhouses.”
The company provides a suite of tools to boost earnings, including market analysis and guest communication. Its standout feature is dynamic pricing, which algorithmically adjusts rates in real time based on market trends.
To calculate optimal prices, Smartness analyses thousands of data points, including booking history, market trends, and future demand. The algorithm then establishes the best pricing strategy. Rates are synchronised across sales channels, ensuring consistent pricing without manual updates. The result is faster, smarter pricing to fuel growth.
Founded in 2020, the company was known as Smartpricing before rebranding as Smartness in 2024. That year, it surpassed 4,000 clients in 41 countries, raised over €15mn, and grew to a team of 100.
5. Up2You
Milan-based Up2You provides tailor-made sustainability solutions for companies. Founded in 2020, the scaleup has built a platform that helps organisations reduce their carbon emissions.
Businesses are guided through the full sustainability journey, from analysis and planning to training and communication. Tools include CliMax for emissions management, Choral for data collection and sustainability reporting, and PlaNet for training and staff engagement.
UP2You also supports clients in achieving global sustainability certifications, including B Corp, ISO, and Ecovadis. The company frames sustainability as both an ethical imperative and a competitive edge.
Over 450 companies have joined its platform, including Italian bank Banco Azzoaglio. “The calculation of our carbon footprint generated unexpected results in terms of collaboration and enthusiasm,” said bank president Erica Azzoaglio. “It significantly boosted internal awareness of sustainability issues and will shape our strategic objectives.”
What’s next for the scaleups from Southern Europe?
The Southern European scaleups will compete for the TECH5 title with rivals from six other regions. At TNW Conference in June, we’ll crown the grand champion as Europe’s hottest scaleup.
The challengers from France, Benelux, the Nordics, and DACH have also all been chosen. Contenders from two more European regions will be announced in the next fortnight.
Next week, we reveal the finalists from the next region to enter the tournament: the Baltics.
TECH5 is part of a packed programme for TNW Conference, taking place on June 19 and 20 in Amsterdam. Tickets are now on sale — use the code TNWXMEDIA2025 at the checkout for 30% off.
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Thomas Macaulay