Portugal Startup density

Portugal’s Startup Ecosystem: A Rising Tech Hub in Europe

In the 2024 Global Startup Ecosystem Report, Portugal ranks 27th globally and 4th in Southern Europe, reflecting its growing role as a regional technology and innovation leader. Key sectors driving this success include fintech, health tech, deep tech, and artificial intelligence (AI). Portugal’s startup ecosystem has also nurtured several high-growth companies, including unicorns and emerging scale-ups:

• Farfetch, a global luxury fashion e-commerce platform valued at over $3 billion.
• OutSystems, a leader in low-code software development, valued at $9.5 billion.
• Talkdesk, an AI-powered cloud contact center platform, valued at $3 billion.

Portugal ranks 2nd in enterprise value growth across Southern Europe, experiencing a 5x increase from 2017 to 2023. By 2023, its startup ecosystem reached a combined enterprise value of €16 billion, fueled by robust investment rounds and government-backed innovation incentives.

Some notable funding rounds include:

• 2022: €150 million for Feedzai (AI-driven risk management).
• 2023: €120 million for Sword Health (digital musculoskeletal therapy) and €70 million for Remote (global HR platform).

Portugal’s Startup Ecosystem: Driving Innovation and Growth

Portugal’s startup ecosystem reflects immense growth potential, positioning itself as a key player in Southern Europe. Despite lagging behind regional leaders like Spain (€40 billion) and Italy (€35 billion), Portugal accounts for 8% of Southern Europe’s total enterprise value, with growing momentum across key sectors.

To bridge the gap with leading ecosystems, Portugal has the potential to:

• Attract more late-stage and international investors.
• Continue nurturing high-growth sectors, such as fintech, deep tech, health tech, and renewable energy.
• Strengthen its startup infrastructure and funding ecosystem to sustain enterprise value growth.

According to Startup Portugal, over 3,000 startups actively operate in Portugal across diverse industries. Key sectors driving growth include software, fintech, AI, and health tech.

Portugal’s ecosystem has shown steady funding activity, with over 60 funding rounds annually between 2020 and 2023. Notably, 2021 set a record with €960 million invested, signaling strong interest from both private and public investors.

Source: Private Equity List, Pre-Seed and Seed Funding Landscape: Exploring Opportunities in Southern Europe.

The ecosystem benefits from robust infrastructure, including 15 incubators and accelerators, such as Startup Lisboa, Beta-i, and UPTEC. Flagship events like Web Summit and Portugal Tech Week showcase Portugal’s vibrant innovation scene to global audiences. Prominent venture capital firms, such as Indico Capital Partners, Portugal Ventures, and Shilling, play pivotal roles in shaping the ecosystem.

Portugal also boasts a deep talent pool, with over 140,000 IT professionals trained by top universities and technical institutions. Cities like Lisbon, Porto, and Braga serve as key hubs, offering remote-friendly environments that attract local and international talent.

Lisbon remains the central hub for Portugal’s startup ecosystem, hosting 30% of the country’s startups. Other cities, such as Porto and Coimbra, foster innovation, collaboration, and regional growth.

Resources

• Startup & Entrepreneurial Ecosystem Report 2023 – Start Up Portugal
• Scaleup Portugal Report – Scale Up Portugal
• Portugal’s Startup Scene Soars with 16% Growth – Portugal Global
• Portugal Startup Ecosystem Statistics – Moving To
• Mapping Portugal’s Startup Landscape – Portugal IDC Interactive