Venture Capital Funds are investment vehicles which seek private equity investment in start-ups and small to medium sized companies.

By analyzing the list of venture capital and private equity funds approved by the portuguese regulator (CMVM) we can find niche, innovative and specialized funds with investment strategies in diversified areas, such as:

  • Agriculture;
  • Blue economy;
  • Distressed companies;
  • Hospitals & healthcare;
  • Industrial and commercial properties;
  • Life sciences;
  • M&A;
  • Tech startups;
  • Tourism;
  • R&D.

The fund’s activity is regulated and overseen by the European Central Bank, Bank of Portugal, the Portuguese Securities Markets Commission (CMVM), and audited by statutory auditors. Asset appraisers are also duly registered with the CMVM. All Fund resources are deposited with a top-tier European Bank.

The investments held by the fund are managed in accordance with the business plan and investment rules that the Portuguese Securities Markets Commission approved. Hence, investors know their resources will be invested based on a specific strategy and criteria.

Key advantages of investing in Venture Capital funds do access to Golden Visa in Portugal

Initial Investment

The process of investing in Funds is quite seamless and less costly than the most popular option of buying a property. There are no additional transaction costs or annual taxes to pay when investing in a fund. When buying real estate, there are several additional costs (8-10% of the investment) and annual recurring municipality taxes (IMI), property insurance and maintenance costs. Similarly to agent fees when you’re renting a property, the fund manager will charge you an annual management fee for looking out after your money

Transparency, security and regulation

The fund’s activity is regulated and overseen by the European Central Bank, Bank of Portugal, the Portuguese Securities Markets Commission (CMVM), and audited by statutory auditors.

Asset appraisers are also duly registered with the Portuguese Securities Markets Commission (CMVM). All Fund resources are deposited with a top-tier European Bank.

Professional management

The fund is managed by an independent fund manager supervised by CMVM and subject to independent audits by a world-class audit firm. The management team acts in the interest and on behalf of investors in a safe, cost-effective, transparent and responsible manner, providing the services adjusted to the clients’ needs, thus ensuring a solid security and transparency layer. The manager is also responsible for the payments of dividends and distribution of gains and capital to investors.

Investment strategy approved in advance

The investments held by the fund are managed in accordance with the business plan and investment rules that the Portuguese Securities Markets Commission approved.Hence, investors know their resources will be invested based on a specific strategy and criteria. Internally, fund managers also have an investment committee that oversees all investments made and makes sure they’re done following the stated investments rules and strategy. This regulation level ensures investors comply with Portuguese legislation and ensures that the management team follows a clear investment strategy to achieve its goals.

Seamless exit strategy

To qualify for Golden Visa, investment in Funds have to be held for a minimum of 5 years. Fund resources are invested for a limited period (on average 5-7 years) in equity or debt instruments in companies generating cash-flow and/or high potential projects as a way to benefit from the increase in value, as opposed to investing in properties that have no immediate liquidity if needed. This way, it is possible to mitigate risk whilst providing higher income and upside potential.The entire liquidation process of the assets and the investments are overseen by the fund managers and the investment management team at a specific time.

Disclaimer: Prior to making any investment, potential investors should consult with their own legal, investment, accounting, regulatory, tax and other advisors in order to make an independent evaluation of those potential investment options and opportunities that best fit their own criteria and investment profile and capacity.

Advantages of the Golden Visa Portugal program

This regime allows nationals of non-EU and non-EEE countries to be entitled to:

  • Residence visa waiver for entering Portugal;
  • Living and working in Portugal, as long they stay in the country for a period of 7 or more days, in the first year, and 14 or more days, in the subsequent years;
  • Visa exemption for travelling within the Schengen Area;
  • Family reunification;
  • Applying for permanent residence;
  • Applying for Portuguese citizenship by naturalization.

Who can apply?

All citizens who are not nationals of an EU, nor EEA, Member States who carry out an investment activity, personally or through a company, incorporated in Portugal or incorporated in another EU State and a permanent establishment in Portugal.

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