Portugal is particularly well known for its open policies with regard to investment as well as its fairly dynamic startup ecosystem, with companies across a broad range of sectors thriving. From fintech companies to businesses in the renewable energy sector, Portugal is buzzing with new companies constantly popping up.
As of the end of 2023, there were more than 4,000 active startups all around the country, and with Lisbon operating as the epicentre (so to speak) of the business ecosystem in Portugal, the situation is constantly improving.
One of the best indications that a country’s doing well with regard to the establishment of new businesses is the emergence of unicorns, and although the country’s numbers are still fairly low, Portugal is on the rise.
In fact, while there are eight businesses in total that have achieved unicorn status at one point or another, Portugal is currently home to three unicorns. Of course, it’s not uncommon for companies to become unicorns and then end up falling off the list, whether it’s because its valuation drops or shifts towards public ownership.
Regardless, trends are showing that Portugal has become a great place to start and run a business and there are several reasons why this is true.
What Makes Portugal Good For Startups?
There are plenty of factors that make Portugal a great place to start and run a business, including its incredibly supportive regulatory environment, financial incentives and location, among other things.
Supportive Regulatory Environment: The Portuguese government has implemented several initiatives to support and encourage startup activity, attracting entrepreneurs from all over the continent, including tax breaks, grants and a Startup Visa that’s specifically designed for tech entrepreneurs. There are also plenty of incubators and accelerators in Portugal.
Membership in the European Union: Portgugal’s membership to the EU provides businesses with access to larger markets and more investment opportunities.
Central Location: The country’s central location means that companies have easy access to the other parts of Europe which is great for business operations and potential opportunities for investment too.
Affordable Cost of Living: Relative to the rest of Europe, Portugal actually offers residents a fairly low cost of living making it a great place for entrepreneurs to settle down and focus on starting a business.
Hosting International Events: Portgual is hosting an increasing number of international events, including the annual Web Summit held in Lisbon.
Access to Venture Capital: In recent years, Portugal has seen a rise in the availability of venture capital, both from local and international investors too.
Top Unicorns in Portugal
As of 2024, Portugal is currently home to three companies that have achieved unicorn status, some of which boast valuations that are incredibly impressive.
OutSystems: $9.5 Billion
OutSystems, founded in 2001, is the developer of an application and delivery platform that integrates custom code. The intention of the platform is to help develop, deploy, manage and change web-based applications that are reliable, ready to scale and is based on standard technology.
The aim of OutSystems’ services is to allow companies to manage their applications as easily and efficiently as possible without requiring lock-in from vendors.
OutSystems was founded by Paula Rosado, the company’s current CEO and as of its most recent valuation, it’s now worth $9.5 billion.
Talkdesk: $10 Billion
With over 2,000 employees and 30 different investors, Talkdesk is the developer of a cloud-based cal centre software. The software helps growing businesses improve customer satisfaction while simultaneously reducing operational costs.
Using IVR, ACD and skills-based routing tech that easily integrates ITSM and CSM services desks, Talk desk helps companies effectively communicate with customers and manage call centres over the internet.
Talkdesk was founded in 2011 by Tiago Paiva and is now worth $10 billion.
Feedzai: $1 Billion
Feedzai, most recently valued at $1 billion, is the developer of risk management software that’s designed to help customers have safe and secure experiences. By means of machine learning tech, the platform uses large data sets to detect anomalies and highlight any potential cases of fraud that may be associated with banking and shopping.
With this technology, both businesses and customers can use online shopping platforms without security concerns. Furthermore, clients are able to monitor any and all transactions throughout the business in real time.
Feedzai was founded by Pedro Bizarro and Nuno Sebastiao (current CEO and Chief Science Officer) in 2011.