Startup Portugal

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Comprehensive national government strategy launched 2016 supporting technology entrepreneurship through ecosystem development, alternative financing instruments, and internationalization initiatives to diversify economy and create knowledge
What are the main aims and objectives?

Startup Portugal aims to strengthen Portugal's startup ecosystem by identifying and overcoming sectoral and regional gaps in acceleration programs, business incubators, fablabs, maker spaces, and design factories; to increase the international competitiveness of these assets and promote professionalization of teams and services offered to entrepreneurs; and to foster an entrepreneurial spirit while providing comprehensive assistance to entrepreneurs and businesses, enhancing their sustainability and ability to create jobs. The program is structured across three strategic pillars—ecosystem development, financing, and internationalization—to address different dimensions of startup ecosystem maturation. Specific objectives include promoting technology-based entrepreneurship and innovation across Portugal by supporting entrepreneurs in translating technology ideas into commercial ventures; creating an environment conducive to emergence of technology-based institutions through provision of incubation and acceleration services; reducing entrepreneurial risks through structured business development support and professional coaching; transforming technology projects and research into successful commercial opportunities; facilitating market entry and scaling of startups through connections to investors and corporate partners; and supporting technology networks enabling connections between entrepreneurs, investors, research institutions, and corporates. The program also aims to contribute to job creation particularly for Portuguese youth, economic diversification away from traditional sectors, and establishment of Portugal as a regional technology innovation leader. The program reflects the Portuguese government's commitment that supporting startups is "a good investment in Portugal's innovative capacity and economic viability" during periods of economic transformation.

How does the program work?
Startup Portugal operates through multiple, interconnected components organized across three strategic pillars, with implementation delegated to government agencies and ecosystem partners including IAPMEI (Agency for Competitiveness and Innovation), Enterprise Ireland, Local Enterprise Offices, accelerators, and corporate partners.​ Ecosystem Development Component: The program establishes and supports a national network of certified incubators and accelerators across all regions of Portugal through programs including the Incubation Valley initiative providing incubation services to companies in their first business year; establishment of 10 Regional Business Angel Organizations enabling angel investment activity nationwide; creation of maker spaces, fablabs, and design factories as shared innovation infrastructure; and professional development programs for incubators and accelerators through the Vouchers for Incubators and Accelerators program providing €30,000 to €150,000 per organization for human and technological development.​ Financing Component: Multiple funding mechanisms serve different startup development stages. The Startup Voucher provides €1,000 to €200,000 support to 18-35 year-old entrepreneurs for developing ideas-stage projects, with technical and financial tools to establish innovative companies. The Momentum Programme targets recent graduates and final year students receiving social action grants, providing business idea development support. The 200M Fund and subsequent Co-Investment Funds facilitate matching investment between private investors (business angels, venture capital) and public capital through the IN2:BA program and Portugal Ventures public venture capital. Startup Vouchers for Green and Digital Products provide €30,000 support for digital and green technology startups. The Seed Programme provides seed capital through direct grants or co-investment structures. Tax incentive programs including SIFIDE II provide financial support to qualifying companies.​ Internationalization Component: Support for international expansion includes Business Abroad funding helping Portuguese startups participate in major international events and conferences; the Startup Visa providing residence visas to non-EU entrepreneurs establishing startups in Portugal; Tech Visa enabling companies to attract highly qualified foreign workers; and Pitch Vouchers strengthening relationships between startups and large enterprises through structured networking.​ Supporting Mechanisms: The Startup Centre platform enables large companies to post technological challenges and startups to propose innovative solutions. Company space and registration services provide bilingual (Portuguese/English) support for foreign entrepreneurs' business formation. Entrepreneur training programs offer subsidized courses covering business development, funded at 90% through EU COMPETE funds.
What is the overall cost?

Prime Minister António Costa announced a €200 million co-investment fund to match venture capital investments in local startups and foreign enterprises relocating to Portugal

How was it implemented?

Startup Portugal was created in response to Portugal's post-financial crisis economic recovery needs, characterized by severe unemployment, youth emigration ("brain drain"), innovation deficits relative to peer economies, and weak startup ecosystem infrastructure. The Portuguese government recognized that revitalizing the startup ecosystem was essential for economic recovery, job creation, and international competitiveness.​

In 2016, Prime Minister António Costa announced Startup Portugal at the first edition of Web Summit in Lisbon, with concurrent announcement of the €200 million co-investment fund for supporting startups and foreign enterprises relocating to Portugal. This high-profile launch positioned the program as a national strategic priority and demonstrated government commitment to the startup ecosystem. The program was devised as a four-year strategic plan organized around three operational pillars—ecosystem, financing, and internationalization—comprising approximately 15-25 distinct measures enabling tailored support for different entrepreneur needs.​

The Agency for Competitiveness and Innovation (IAPMEI) was designated as the coordinating body responsible for implementing Startup Portugal initiatives, leveraging IAPMEI's existing infrastructure for SME and innovation support. This delegation enabled rapid implementation utilizing existing institutional capacity rather than creating new administrative structures.​

In 2016-2017, Startup Portugal implemented multiple measures including Startup Momentum (support for business creation by recent graduates), Startup Voucher (financing for early-stage entrepreneurs), Incubation Voucher (support for incubator services), establishment of the National Network of Incubators and Accelerators, the Seed Programme (seed capital provision), and co-investment funds with business angels and venture capital undertakings.​

The contractual commitment to host Web Summit in Lisbon through 2028 anchored program implementation, with the event generating over €45 million in fiscal revenue and attracting substantial venture capital investment into Portuguese startups. In 2018, the Portuguese Government announced Startup Portugal+, an upgraded program consolidating initial measures while introducing new initiatives addressing emerging challenges and expanding support scope, reflecting adaptive management based on early implementation experience. Following initial success, the program was further expanded with additional government investments. In 2020, emergency pandemic support for startups was added (€8 million Startup HR Covid19 program). In 2025, the government launched the Deep2Start program, allocating €60.6 million public financing for deep technology and science-based startups, representing strategic evolution toward higher-tech, higher-impact ventures.

What impact has been measured?

In 2016: for every company that died, 3 new were being born. Among those, 10% were selling to foreign markets in their first year of life. More than half of all new jobs in Portugal were being created by new companies. Also, Portuguese scale­-ups raised over €150 million in the past year from venture capital alone. These are some indicators of how the ecosystem developed. 

By 2025, Portugal had reached 5,091 active startups, achieving the Recovery and Resilience Plan (PRR) target of 5,000 startups, representing 8% annual growth and approximately 1% of all active companies in Portugal.

However, there is no information available on Startup Portugal's direct contribution to these ecosystem achievements. 

What lessons can be learned?
  • High-profile political commitment accelerates ecosystem development: The public announcement of Startup Portugal by Prime Minister António Costa at Web Summit and concurrent €200 million fund allocation signaled government commitment, demonstrating that visible, high-level political support mobilizes both public and private sector participation in ecosystem development.​
  • Multi-component program design enables tailored support for different needs: Organizing Startup Portugal across three pillars (ecosystem, financing, internationalization) with 15-25 distinct initiatives rather than a single program enabled tailored support for different startup stages and entrepreneur profiles, increasing program reach and relevance.​
  • Leveraging existing institutional capacity accelerates implementation: Assigning program coordination to IAPMEI (existing development agency) and utilizing established infrastructure (business registration systems, training networks, venture capital relationships) enabled rapid deployment without creating new bureaucracies, suggesting that institutional integration is more efficient than creating parallel structures.​
  • Regional ecosystem development requires geographic distribution of infrastructure: The establishment of 10 regional business angel organizations and expansion to secondary startup hubs demonstrates that deliberate geographic distribution of ecosystem infrastructure can reduce concentration of startup activity in traditional hubs and democratize access to entrepreneurship support.​
  • Tax incentives and regulatory frameworks are as important as direct funding: Startup Portugal includes SIFIDE II tax credits, favorable startup legal status creation, and visa/immigration pathways for entrepreneurs and talent, indicating that regulatory and fiscal policy may be as significant as direct grant funding in shaping ecosystem attractiveness.​
  • International visibility attracts private investment and talent: The Web Summit commitment (2016-2028) and Startup Portugal launch created international attention and investment interest, with venture capital investments increasing 52% from 2015 to 2016, demonstrating that visibility and brand positioning attract capital flows.​
  • Achievement of quantitative targets requires sustained commitment: Portugal's achievement of the Recovery and Resilience Plan target of 5,000 startups by 2025 (nine years after program launch) demonstrates that significant ecosystem transformation requires multi-year commitment and continuous program evolution, not one-time interventions.​
  • Limited published evaluation constrains learning and accountability: The absence of comprehensive independent evaluations makes it difficult to assess which specific program components generated greatest impact, which demographics of entrepreneurs benefited most, or what employment and wealth creation resulted, limiting evidence-based program optimization and policy learning.​
  • Lesson on ecosystem maturation stages: The 2025 characterization of Portugal's ecosystem as entering "consolidation" with "mature, sustainable" development (after nine years) suggests that startup ecosystem maturation follows multi-stage trajectories, with implications for policy evolution as ecosystems develop from creation phases toward scaling and sustainability phases.​
  • Complementary funding frameworks demonstrate sustained commitment: The €2 billion emergency package followed by the €10 billion Future Fund approved December 2020 suggests government recognized emergency response was insufficient and longer-term venture capital ecosystem investment was required to sustain Portugal's startup sector, demonstrating evolution from initial emergency support to structural institutional commitment.​

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