Barcelona: The Unexpected Hub of Spyware Startups
In the heart of Catalonia, Barcelona has long been a symbol of Mediterranean allure, renowned for its art, architecture, and cultural vibrancy. Yet in recent years, the city has become an unlikely epicenter for an entirely different sector—spyware and offensive cybersecurity startups. At the intersection of ethical concerns and technological innovation, Barcelona's emergence as a hub for these firms sheds light on a rapidly evolving industry with profound global implications.
A New Breed of Startups
In late 2023, an Israeli security researcher received a LinkedIn message offering a lucrative opportunity at a Barcelona-based company named Palm Beach Networks. The startup, specializing in zero-day exploits and spyware implants, claimed to work only with “legitimate customers.” Its CTO, Alexey Levin, a former NSO Group researcher, assured the candidate of the company's ethical practices.
Palm Beach Networks is just one of several firms that have sprouted in Barcelona. These companies are shaping a new wave of offensive cybersecurity innovation while also navigating scrutiny over ethical and legal boundaries.
Other notable players include Paradigm Shift, a successor to the troubled Variston, and Epsilon, which focuses on exploit development under the leadership of Jeremy Fetiveau, a veteran of the U.S. defense contractor L3Harris. Meanwhile, an anonymous team of Israeli researchers, previously operating in Singapore, has also set up shop in the city.
Why Barcelona?
Barcelona's transformation into a spyware hub is underpinned by several factors:
- Mediterranean Lifestyle
The city’s Mediterranean climate, vibrant nightlife, and rich culture are a magnet for professionals. Often likened to Tel Aviv, Barcelona offers sunny beaches, world-class food, and a cosmopolitan vibe, making it an attractive destination for tech workers seeking a high quality of life. - Cost of Living and Tax Incentives
Compared to other European tech hubs like London and Berlin, Barcelona boasts a lower cost of living and favorable tax policies, especially for tech companies. Spain’s initiatives to attract startups and foreign talent have added to the city’s allure. - Regulatory Advantages
The European Union offers a more flexible regulatory environment for spyware firms than Israel, where export controls on surveillance technology have tightened following controversies involving NSO Group. By relocating to Barcelona, companies can more easily access EU markets and avoid regulatory bottlenecks at home. - Strategic Relocation from Israel
Israel’s enhanced scrutiny over spyware exports has driven companies to seek alternative bases of operation. Barcelona’s combination of regulatory accessibility and quality of life makes it a logical choice for firms looking to maintain their competitive edge.
Key Players in Barcelona’s Spyware Scene
- Palm Beach Networks
Though officially dissolved in 2024, Palm Beach Networks has left a notable mark. Records suggest links to a new entity, Head and Tail, which shares overlapping executives and continues operations in Barcelona. This strategy of rebranding and restructuring mirrors tactics used by firms like Candiru and NSO Group to obscure their corporate identities. - Paradigm Shift
Founded by Leone Pontorieri, Filippo Roncari, and Simone Ferrini—former employees of Variston—Paradigm Shift openly recruits for offensive cybersecurity roles. It stands as a successor to Variston, one of the first spyware firms to establish itself in Barcelona. - Epsilon
Epsilon, led by industry veteran Jeremy Fetiveau, focuses on zero-day exploits and other advanced cybersecurity tools. The firm benefits from Barcelona’s startup-friendly ecosystem and operates alongside unnamed Israeli researchers who relocated to the city. - SAFA
While headquartered in Austria, SAFA has a strong presence in Barcelona. Its CEO, Andrijana Šekularac, resides in the city, and the firm actively sponsors offensive cybersecurity conferences, further cementing its ties to the local ecosystem.
Ethical Concerns and Global Implications
The spyware industry has faced relentless criticism for enabling human rights abuses. John Scott-Railton, a senior researcher at Citizen Lab, has highlighted numerous cases where spyware was used to target dissidents, journalists, and activists. Even Western diplomats and European citizens have been victims of surveillance.
Although companies like Palm Beach Networks claim to work only with legitimate clients, the broader history of the spyware industry casts doubt on such assurances. The rebranding strategies employed by firms in Barcelona to obscure their origins further complicate efforts to hold them accountable.
Barcelona’s Expanding Tech Ecosystem
The spyware sector is just one facet of Barcelona’s booming tech scene. Over the past five years, the city’s cybersecurity workforce has grown by 50%, with over 10,000 professionals employed by more than 500 firms.
Barcelona’s startup culture extends beyond cybersecurity. The city has given rise to unicorns like:
- Glovo, a food delivery startup valued at €2.3 billion.
- Impress, a leader in orthodontics that secured $114 million in 2024.
- TravelPerk, a business travel management platform that raised $105 million in 2024.
According to the Barcelona and Catalonia Startup Hub, the region is home to over 2,200 startups, solidifying its status as one of Europe’s leading innovation centers.
The Rise of Offensive Cybersecurity
Offensive cybersecurity, encompassing spyware and exploit development, is a growing field. Companies in this space cater to government clients, providing tools for intelligence gathering, law enforcement, and military operations.
However, the line between legitimate use and abuse is thin. Spyware tools have been implicated in suppressing dissent in authoritarian regimes and violating privacy rights worldwide. The ethical challenges posed by these technologies demand greater scrutiny and regulation.
Related: CES 2025: Shaping the Future of Technology
Barcelona’s Role in the Global Spyware Landscape
Barcelona’s emergence as a spyware hub reflects broader trends in the cybersecurity industry. As regulations tighten in traditional strongholds like Israel, new locations with favorable business environments are emerging.
For Barcelona, this shift brings both opportunities and challenges. While the spyware industry contributes to the city’s growing reputation as a tech hub, it also raises ethical dilemmas. The potential misuse of surveillance technology casts a shadow over the economic benefits these companies bring.
The Future of Spyware in Barcelona
As spyware firms continue to thrive in Barcelona, the city finds itself at a crossroads. Balancing the economic advantages of hosting a burgeoning tech sector with the ethical concerns surrounding surveillance technology will be crucial.
For now, Barcelona remains a city of contrasts—where sunlit beaches and bustling tapas bars coexist with the secretive operations of spyware firms shaping the future of cybersecurity.
