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What are venture capital funds?

  • Venture capital funds
    October 7, 2021

    In November 2018, the government of Portugal introduced venture capital funds to the Golden Visa program of the country. These funds are an eligible option for investors who want to apply to Portugal Golden Visa.

    The Golden Residence Permit program in Portugal is one of the most successful and popular immigration programs in Europe. It allows foreigners to live and work in the country without visa-free access to Schengen zone. Portugal Residence by Investment Program (ARI) offers visa-free access within Shenghen Zone — get visa-free access to 26 EU states including Switzerland.

    Venture Capital Funds are investment vehicles with the objective of investing into a portfolio of assets, mainly composed of several companies offering high growth potential. These funds may focus on different sectors like industry, technology, real estate or energy. Each protected under a specific mandate, venture capital funds are regulated by Portugal’s regulator, the CMVM. 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.

    Investments in Portugal are generally, but not exclusively, made into start-ups, in business categories such as Tourism related areas, Hospitality, Health and Healthcare, and Technology, as well as into others sectors that are deemed to offer opportunities to generate high growth and commercial opportunities.

    To start with, the minimum investment requirement for the venture capital funds is Euros 350,000  (after Jan of 2022 it will be EUROS 500,000).

    To qualify for Golden Visa, investment in Funds have to be held for a minimum of 5 years. Also, it is defined as residency by investment, but it does not require a significant physical residence. The applicants’ continued presence in the country is not necessary for naturalization as long as a certain limit had been met. This limit is 7 days for the first year, and 14 days for the two subsequent years.

    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.

     

    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.

    Portugal Golden Visa

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