By Rajarshi Saha – Startup ecosystem specialist in healthtech and global mobility
A few years ago, few would have guessed that Portugal’s capital city would have the biggest leap in venture capital investment among all tech capitals of Europe.
Yes, Lisbon grew a staggering 26.7 times over the last eight years in the total enterprise value of VC-backed startups. That’s not just impressive – it’s historic. A country better known for wine, beaches, and traditions has become one of Europe’s hottest startup destinations.
Let’s take a closer look at how Portugal’s entrepreneurial ecosystem has evolved over time.
In the past several years, Portugal has quietly but powerfully transformed itself from an under-the-radar startup destination into the 29th most promising startup country in the world and 15th in Western Europe. It began as a budding community of tech enthusiasts and early-stage ventures in 2015 and has since become a thriving, export-oriented, and investment-attracting startup hub with global recognition.
From emerging market to European powerhouse
In 2024, Portugal recorded 4,719 active startups, a 16% increase over the previous year. Now, here is the impressive part: More than two-thirds of these companies were founded in the past five years alone, showcasing just how steep the curve of entrepreneurial activity has become.
Here is another statistic that will make investors and aspiring entrepreneurs turn their heads: During the period of 2017–2024, Lisbon’s startup ecosystem witnessed the highest growth of any European tech capital.
This wave of startup creation is not only reshaping Portugal’s business landscape but is also redefining its economic future.
What’s the impact on Portugal’s economy?
Indeed, the answer is clear: billions in turnover and thousands of jobs.
The numbers tell a powerful story. In 2024 alone, Portuguese startups generated €2.6 billion in turnover, with €1.5 billion attributed to exports. Startups in Portugal are significantly more export-oriented than traditional businesses: one in three startups operates internationally, compared to just 11% across the broader business community.
When it comes to employment, the sector now supports over 26,000 jobs, growing at an astounding compound annual growth rate (CAGR) of 19% between 2020 and 2023 – far outpacing the national average of 4%.
What about investment?
Despite global economic uncertainties, 2024 was a record year for startup investment in Portugal. Startups raised €886 million, a 55% increase from 2023. Interestingly, this growth occurred even as the number of funded companies declined, indicating larger deal sizes and growing investor confidence. This is a clear signal that Portugal is no longer just a place to bootstrap, but a place to scale.
Has Portugal produced any unicorns?
Portugal´s startup ecosystem has been producing unicorns in several sectors, including well-known names like: Sword health, Farfetch, OutSystems, Talkdesk, Feedzai and recently TEKEVER joined the league.
Which regions in Portugal are contributing to Portugal’s startup boom?
Portugal’s startup ecosystem is becoming increasingly decentralized, with notable growth beyond the traditional hubs of Lisbon and Porto. Cities like Coimbra and Aveiro have become a vibrant innovation corridor, supported by academic institutions, incubators, and a growing community of tech-savvy entrepreneurs.
In addition to these primary regions, emerging ecosystems are taking shape across the country. Braga in the North, Leiria in the Center, Évora in Alentejo, and coastal areas of the Algarve are increasingly being recognized for their innovation potential, driven by strong local universities and a motivated workforce.
Even smaller inland cities such as Bragança and Guarda are gaining momentum in the startup space. This nationwide expansion signals a maturing ecosystem with diverse opportunities across regions and reflects a broader national trend, where startup development is no longer confined to the capital or the country’s largest urban centers.
Top startup incubators in Portugal
Portugal’s national growth has been powered by vibrant regional hubs, each offering unique ecosystems and institutional support for startups. Here’s a summary table of promising and leading startup incubators, as highlighted by the Financial Times.
| City | Notable Hub(s) | FT Europe Ranking | Key Strengths |
| Lisbon | Unicorn Factory, LISPOLIS, Casa do Impacto, BGI | 17th, 62nd, 90th, 67th | Funding, international events, diverse talent |
| Braga | Startup Braga | 31st | Innovation, tech education |
| Coimbra | Institute Pedro Nunes | 42nd | Research-driven innovation, university links |
| Leiria | Startup Leiria | 68th | Regional and early-stage startup support |
What is driving this momentum?
Portugal’s startup rise didn’t happen by accident. Several key factors are fueling this growth.
Government initiatives such as Startup Visa and national funding schemes have created a supportive framework for entrepreneurs. The country also benefits from a skilled, English-speaking workforce with global ambitions, making it attractive to both local and international founders.
Portugal’s decent quality of life, from Lisbon’s coastal appeal to Braga’s cultural charm, continues to draw top talent and remote workers. Major events like Web Summit have further boosted international visibility, placing Portugal firmly on the global tech map.
Portugal has defied expectations, evolving from a quiet coastal economy into a global magnet for innovation, investment, and entrepreneurship. What was once a modest ecosystem of fledgling tech ventures is now home to thousands of startups, booming international exports, and record-breaking investment.
About the author:
Rajarshi Saha is an expert with extensive experience driving international B2B growth, operations, and strategic partnerships, particularly in healthtech and global mobility. With a strong track record in the startup ecosystem, particularly in Portugal, he specializes in connecting innovative ventures with global markets. He also advises initiatives across partnerships, communications, and operations.
Featured image: Rajarshi Saha, startup ecosystem specialist in healthtech and global mobility (Photo: Supplied)
Disclaimer: The opinions expressed in contributed opinion pieces are those of the authors and do not necessarily reflect the views of Portugal Startup News.
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