Portugal has been gradually emerging as a favorable destination for startups, driven by its talented engineers, competitive costs, and global product launches.

The success of a startup is greatly influenced by its location. The availability of capital and funding opportunities in different regions can significantly impact the initial success and long-term sustainability of new companies. When comparing the dynamic markets of Asia, Europe, and the US, it becomes apparent that there are notable differences in capital accessibility and investor participation.

In Europe, startups still face challenges in accessing large funding rounds due to the relatively lean nature of venture capital funds in the region. While European ecosystems offer strong seed funding opportunities, there is a shortage of high funding investors, unlike Silicon Valley, which remains home to many risk-taking investors. Interestingly, Europe attracts 38% of all global seed capital investments, but European venture capital investors are less involved in larger funding rounds, highlighting the scarcity of growth capital in the region.

Portugal is a rapidly growing startup ecosystem. The country has a number of advantages that make it a great place to start a business, including:

  • A strong economy: Portugal’s economy has been growing steadily in recent years and is expected to continue to grow in the coming years.
  • A skilled workforce: Portugal has a skilled workforce with a high level of education. This makes it a great place to find the talent you need to grow your business.
  • A favorable business environment: Portugal has a favorable business environment, with a low tax burden and a well-developed infrastructure.
  • EU membership: Portugal is a member of the European Union, which gives your business access to a single market of over 500 million people.

Characteristics of Portugal’s Startup Scene:

  • Startups in Portugal tend to focus on enterprise solutions and Software as a Service (SaaS).
  • The ecosystem faces challenges in early-stage financing and a lack of angel investors and exits.
  • Interest from domestic and international venture capitalists (VCs) has been growing, partly due to the success of Portuguese startups like Farfetch and Talkdesk.

Supporting Factors for Portugal’s Startup Ecosystem:

  • Accelerators, co-working spaces, and government initiatives contribute to the fast-moving nature of Portugal’s startup ecosystem.
  • The country has seen growing interest from venture capital firms, which are excited about trends in digitalization, artificial intelligence (AI), the Internet of Things (IoT), and 5G.
  • Initiatives like Portugal Ventures and Faber actively encourage investment in Portugal, with a focus on e-commerce, cloud solutions, data-centric startups, AI, and digital innovation.

The Portuguese government has also been supportive of the startup ecosystem. The government has launched a number of initiatives to support startups, including:

  • The Startup Portugal program: This program provides financial and non-financial support to startups.
  • The Tech Visa program: This program allows foreign entrepreneurs to live and work in Portugal.
  • The Startup Nations Standard: Portugal is a signatory to the Startup Nations Standard, which is a set of best practices for creating a favorable environment for startups.

As a result of these factors, Portugal is becoming a major hub for startups. The country is home to a number of successful startups, including Unbabel, Aptoide, and Uniplaces.

If you are considering starting a startup in Portugal, there are a number of things you can do to increase your chances of success. First, you need to choose the right location. Lisbon and Porto are the two main startup hubs in Portugal. Second, you need to build a strong team. Your team should have the skills and experience necessary to bring your idea to market. Third, you need to secure funding. There are a number of government and private funding programs available to startups in Portugal. Finally, you need to network with other startups and entrepreneurs. This will help you learn from others and find potential partners and customers.

Neomarca can help you with all aspects of starting a startup in Portugal:

  • Choosing the right location
  • Building a strong team
  • Securing funding
  • Networking with other startups and entrepreneurs
  • Navigating the Portuguese business environment

Here are some of the specific ways that Neomarca can help startups:

  • Investment advisory: Neomarca can help startups identify potential investors and secure funding.
  • Corporate strategy: Neomarca can help startups develop a strategic plan for growth.
  • Marketing & sales: Neomarca can help startups reach their target market and generate sales.
  • Human resources: Neomarca can help startups find and hire the best talent.
  • Other services: Neomarca can also help startups with a variety of other tasks, such as finding a location, obtaining permits and licenses, and networking with potential partners and customers.

Talk to our business advisor.