Portugal Frequently Asked Questions
1. What is the current state of Portugal’s startup ecosystem?
Portugal’s startup ecosystem is thriving, ranked 27th globally and 4th in Southern Europe in the 2024 Global Startup Ecosystem Report. It includes over 3,000 startups and a combined enterprise value of €16 billion, driven by sectors like fintech, health tech, deep tech, and AI.
2. What are the key sectors attracting investment in Portugal?
Portugal attracts investment in sectors such as artificial intelligence, fintech, health tech, renewable energy, cybersecurity, blockchain, and advanced manufacturing. These sectors reflect the country’s focus on innovation and sustainability.
3. How much venture capital funding does Portugal attract annually?
In 2023, Portugal secured €151 million in venture capital funding, with projections for 2024 suggesting a recovery to approximately €437 million.
4. What is the Portuguese government doing to support technology and innovation?
The Portuguese government has committed €600 million to the Indústria 4.0 strategy to support digitization, AI research, and advanced computing. Additionally, public-private partnerships foster innovation, particularly in AI and cybersecurity.
5. What is the investment climate in Portugal?
Portugal offers a highly favorable investment climate, characterized by a growing economy, strong government support, and robust infrastructure for business growth. The country’s strategic Atlantic location provides excellent connectivity to Europe, Africa, and the Americas, making it an ideal gateway for global trade and investment.
Key aspects of Portugal’s investment climate include:
- Government Incentives: Portugal provides various tax incentives, including reduced corporate tax rates for small and medium enterprises (SMEs), R&D tax credits through programs like SIFIDE II, and tax exemptions for highly skilled professionals relocating to the country.
- Focus on Innovation: The government has allocated significant funds to the Indústria 4.0 strategy, including €600 million over two years to support AI, digital transformation, and advanced computing.
- Growing Technology Ecosystem: Portugal’s startup and tech ecosystem is thriving, with over 3,000 startups and €900 million in venture capital funding in 2023. Lisbon and Porto have become vibrant innovation hubs attracting global players like Google and Amazon.
- Sustainability Leadership: Portugal is a leader in renewable energy, with €2.4 billion in investments in solar and wind energy projects in 2023, reflecting its commitment to a green economy.
- Ease of Doing Business: Ranked 39th globally in the World Bank’s Ease of Doing Business Index, Portugal offers streamlined processes for company formation, with businesses being set up in as little as 1-3 days through online platforms.
- Resilient Economy: Portugal’s GDP is projected to grow by 1.7% in 2024, with stronger growth anticipated in subsequent years, driven by EU-funded recovery programs and investments in green energy and technology.
6. What are the most significant startup events in Portugal?
Portugal hosts around 20-25 startup events annually, including the globally recognized Web Summit, Portugal Startup Week, and Building the Future. These events connect entrepreneurs, investors, and policymakers.
7. How many active local investment networks exist in Portugal?
Portugal has approximately 12-15 active local investment networks, including angel networks and venture capital firms such as Portugal Ventures, Shilling Capital Partners, and Faber Ventures.
8. What are Portugal’s strengths as a startup hub?
Portugal offers a multilingual, tech-savvy workforce, startup-friendly policies, low operating costs, and global market connectivity. Cities like Lisbon and Porto serve as vibrant hubs, attracting talent and investment worldwide.
