Five of Southern Europe's fastest-growing scale-ups join TECH5's 'Champions League of Tech.'

      Five remarkable scaleups from Southern Europe have advanced to the finals of TECH5 — the "Champions League of Technology." They are now set to compete against other contenders from across Europe to earn the title of the continent's most promising scaleup.

      The digital landscape in Southern Europe is still evolving, yet growth is on the rise. Strong talent pools and academic resources are being complemented by increasing support from investors and policymakers. These factors have solidified the foundations for developing scaleups.

      Our representatives from Southern Europe were selected from seven countries: Andorra, Cyprus, Greece, Italy, Malta, Portugal, and Spain. Each of these nations saw significant growth in their tech industries over the past year.

      Spain's sector was anticipated to grow by 5.8%, Andorra's by 12%, and Malta's by 18%. Portugal experienced a 16% expansion in its startup ecosystem, with deal numbers up by 24% and investment soaring by 148%.

      In Cyprus, a tech surge boosted the economy by €7 billion, while Greek startups attracted over €555 million in investments — a 15% increase compared to the previous year.

      Across the region, scaleups are emerging in greater numbers, but only five made it into TECH5. After evaluating their growth, impact, and future potential, our judges selected an outstanding quintet. Here they are, in no particular order:

      1. **Multiverse Computing**

      Spain’s Multiverse Computing is merging two of today’s leading technologies: AI and quantum computing. This scaleup utilizes quantum and quantum-inspired AI to address complex challenges across various industries. Founded in 2019, it gained early recognition with Singularity, a platform deploying quantum algorithms for various optimization and AI tasks, including electricity grid management and investment portfolio optimization.

      Recently, the company has focused on addressing the substantial energy demands associated with AI. Its solution, CompactifAI, provides compressed versions of leading large language models (LLMs). Last month, the scaleup announced it had achieved an 80% compression of two Meta Llama models with negligible precision loss.

      "Multiverse Computing strives to become the global leader in offering compressed AI models, empowering industries to benefit from cost-effective and energy-efficient AI," the company shared with TNW. Investors are supporting this vision. In an oversubscribed funding round last year, the company raised €25 million and tripled its valuation to €100 million, with an additional €67 million from the Spanish government. President Pedro Sánchez commended Multiverse Computing as a successful application of EU funds.

      2. **1000farmacie**

      As one of three Italian scaleups in TECH5, 1000Farmacie is the leading e-pharmacy in Italy. Through a network of independent pharmacies, it offers a wide variety of health and wellness products. The platform assists customers throughout their purchasing journey, from locating the best prices to consultations and the delivery of over 100,000 products.

      Founded in 2020 and based in Milan, the business enables pharmacies to transition online with ease, allowing them to quickly sell their products. Last year, it secured second place in the Sifted 50: Southern Europe Leaderboard, which ranks the top 50 startups in the region based on revenue growth over the past three financial years, achieving a compound annual growth rate (CAGR) of 333.10%.

      "Our goal at 1000Farmacie is to transform healthcare access in Italy, making it more convenient and focused on patient needs," the company told TNW. "We believe technology can close gaps and enhance lives."

      3. **Coverflex**

      Coverflex from Portugal is intent on enhancing how companies reward their employees. The Braga-based scaleup offers a comprehensive platform for managing all employee benefits, including expenses, insurance, meal vouchers, and childcare. By streamlining the process, the system can improve retention, increase productivity, and reduce administrative costs.

      Companies have the flexibility to tailor the benefits they provide, while employees can manage everything through a single card and app. Founded in 2019, Coverflex has collaborated with over 11,000 clients, including Revolut, Volvo, and Santander. According to the scaleup, clients save an average of €1,000 per employee.

      The company has secured over €20 million in funding, including €15 million in Series A financing in 2023. CEO Miguel Amaro remarked that this funding round confirmed the importance of "our focus on modifying human resources processes to meet the current demand for a more personalized compensation experience."

      4. **Smartness**

      Smartness, based in Italy, seeks to transform hotels, B&Bs, and rentals into "revenue powerhouses." The company offers a range of tools designed to enhance revenue, such as market analysis and guest communication features. Its notable capability is dynamic pricing, which algorithmically adjusts rates in real-time based on market fluctuations.

      To determine optimal pricing, Smartness evaluates thousands of data points, including booking history, market trends, and