INVESTMENT CHALLENGES AND RISKS
Portugal Market entry barriers
Portugal’s Venture Capital Landscape: Key Industries and Investment Trends
In Portugal, there are 76 registered venture capital (VC) investors as of 2023.
Industries of interest.
- Artificial Intelligence (AI): There is significant interest in startups focusing on AI technologies, including applications in natural language processing, real-time decision-making, and AI for software development.
- Fintech: The financial technology sector is a major area of investment, with numerous startups developing innovative solutions to enhance financial services and improve customer experiences.
- Healthtech: Startups in the health technology space are gaining traction, particularly those that offer digital health solutions, telemedicine, and health management platforms.
- Cybersecurity: As digital threats increase, investments in cybersecurity startups are vital to protect data and secure online transactions.
- Blockchain and IoT (Internet of Things): These technologies are also attracting funding, with startups exploring applications that improve connectivity and data security across devices.
- Clean Technology (Cleantech): There is a growing focus on startups that develop sustainable energy solutions and environmentally friendly technologies.
- Engineering & Manufacturing: Innovations in new materials, robotics, and advanced manufacturing processes are also key areas for investment.
Total Number of Funding Rounds:
In 2023, there were 1,599 funding rounds reported, reflecting a vibrant investment environment across various stages, although late-stage rounds are particularly prominent.
Growth in Total VC Funding:
The total venture capital funding invested in the Portuguese startup ecosystem has experienced a remarkable increase, growing approximately 15 times from 2017 to 2021.
Resources
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- Portugal EIB Investment Survey – European Investment Bank
- Portugal Tech II: Government, EI, and BPF boost investment for venture capital with Portuguese DNA – European Investment Fund
- Start-up funding for young entrepreneurs in Portugal – European Commission
- Funding programs and initiatives for entrepreneurs – Portugal Government