Why has Portugal become a hotspot for startups?

We spoke with Startup Portugal executive director António Dias Martins about the country’s unique startup community ahead of Web Summit 2023.

Portugal’s startup scene has been in a bright spot in recent years. In 2021, foreign investment in startups exceeded €1.5 billion, with success stories including Smartex and the Portuguese unicorn Remote making waves.

Launched in 2016 and headquartered in Lisbon, Startup Portugal – one of Web Summit’s event partners – is a nonprofit that supports and promotes entrepreneurship in Portugal.

The organisation liaises between the Portuguese government, accelerators, entrepreneurs, incubators, investors and academic institutions to propagate the startup community within the country.

We sat down with António to discuss the organisation’s ongoing success, and learn more about the resources it provides to help encourage entrepreneurship in Portugal.

Image of António Dias Martins, executive director, Startup Portugal: Startup Portugal

Tell us a bit about Startup Portugal and why Web Summit is important to you.

Startup Portugal is a driving force in Portugal’s entrepreneurial landscape. As a nonprofit organisation funded by public resources – and holder of the Statute of Public Utility – the company’s mission is to promote and foster entrepreneurship.

And why is Web Summit important for us?

With this renowned technology event, startups based in Portugal get the opportunity to network, learn and showcase products to a global audience. It’s not just a chance to shine – it’s a way to put Portugal in the spotlight within the international startup community.

Why has Portugal become such a hotspot for startups?

This is the result of its talented Portuguese entrepreneurs and also of a well-tuned ecosystem – fueled by the Portuguese government in collaboration with public and private organisations – in a strategy driven by Startup Portugal.

Today, Portugal’s startup community is collaborative and welcoming, with numerous networking events, co-working spaces and incubators providing opportunities for entrepreneurs to connect, share experiences, and learn from one another.

The workforce in Portugal is not only well-educated but also multilingual, with a strong focus on technology and innovation.

Access to funding has also received a significant boost, with an influx of venture capital investment and various government incentives.

Last but not least, we can’t forget Portugal’s strategic location – it’s positioned at the crossroads of Europe, Africa and the Americas, making it an ideal hub for global collaboration – and its high quality of life with its pleasant climate, beautiful landscapes and rich culture, which attracts talent from all around the world.

What is the process for registering a new company in Portugal, and what are the key requirements entrepreneurs need to fulfil?

Thanks to the Empresa na Hora service, you can do it in a couple of hours – in person or online. The specific documentation required depends on the type of business and partners involved, and you can easily find this information on the IRN website.

As for costs: they can vary based on the type of company you intend to create, with a standard order typically costing around €360.

Are there any particular sectors or industries the Portuguese government is encouraging for startup development?

While no specific sectors are preferred, the Portuguese government actively supports businesses that aim to make a positive impact on the environment and those focused on digitising processes both green and digital.

What is the recently introduced startup law, and how does it benefit startups, investors and talent based in Portugal?

This has significantly improved the ecosystem. It includes a legal framework that simplifies processes for startups and scale-ups and reduces administrative obstacles.

One key aspect of the legal framework is a new tax regime for Employee Stock Option Plans (ESOPs). This regime offers favourable taxation of ESOPs, with a final tax rate of 14 percent, one of the most competitive tax rates in Europe.

This benefits startups, investors, and talent by providing an attractive environment for stock options and encouraging their use in employee compensation.

Can you tell us about the various supports, incentives and programmes that Startup Portugal has in place to promote the startup ecosystem?

Startup Portugal is at the forefront of promoting the startup ecosystem in the country. We offer various support programs and initiatives, each designed to foster entrepreneurship and innovation.

These include programs like Road 2 Web Summit, a startup bootcamp, and Business Abroad, which facilitates international expansion for Portuguese-based startups.

We also organise monthly community hangouts and several other events to encourage networking, collaboration, and knowledge-sharing within the startup community.

Our organisation’s multifaceted approach ensures that startups in Portugal have access to a wide range of resources and support to thrive and scale globally.

We connect entrepreneurs with organisations such as IAPMEI, ANI, AICEP, Banco Português de Fomento, and Tourism of Portugal play a pivotal role in offering resources and support to potential entrepreneurs and investors.

Check out our one-stop shop for relevant information related to these.

What are you most looking forward to this year at Web Summit?

Startup Portugal has so much to be excited about at Web Summit 2023, but we are particularly excited about the 115 Portuguese startups participating in the Road 2 Web Summit programme.

We are also eager to connect with partners from various ecosystems and regions, including those from Brazil, Canada, France, Spain and Asia. And of course, we’re excited to get to know every visitor at our stand who wants to connect with our community.

Want to learn more about Startup Portugal? Visit the website or stop by its stand on the event floor during Web Summit 2023.

Main image: Startup Portugal