IN2:BA – Business Angels Co-Investment Fund


This approach allowed the creation of a large community of potential investors to become real business angels. It attracted expertise, networking and private money to the Portuguese entrepreneurial ecosystem. 


Initially, the government wanted to fund only 20 investment vehicles (770.000 euros of investment each vehicle) but due to the quality of proposals, the government was “forced” to co-invest with 54 investment vehicles.

Initially the government wanted to invest form its side 10 million euros but in the end, due to the high quality of proposals, increased that amount to 29.275.000 euros, matching 16.324.000 euros from the private investors.


PME Investimentos (PT)


Start-up in this context means companies less than 4 years old.


This program was launched in the end of 2009 with a competitive tender. Agreements with investment vehicles owned by business angels were signed by the end of 2010 and investments started early 2011. In 2014 government launched a second call but deal by deal.

Investment period ended September 2015. Exits of the invested companies must occur until end of 2020. 


Total amount invested by Business Angels Investment vehicles: 45.600.000 euros

Total amount invested by State: 16.324.000 euros

Number of BA investment vehicles: 55

Number of Business Angels involved: 268

Number of companies supported: 158

Number of investments: 307

New jobs created: 398

Jobs created and maintained: 826


And the best result, is that it started a new era of access to finance to entrepreneurs in Portugal


In terms of lessons:

  • Some investment vehicles were not located in urban areas so they had some difficulty in finding deal flow
  • There were some geographical restrictions of the investments
  • Some excessive bureaucracy in the beginning of the scheme, that was improved afterwards
  • Existence of templates of shareholder agreements would help a lot to speed the processes
  • Very quick process of approval (less than one month on average), after each operation was submitted by the investment vehicles.
  • Training for investors was very important
  • Initial roadshow to attract investors was really important
  • Certification of business angels prior to selection of investment vehicles made a positive impact

Paulo Andrez, Ricardo Luz, Francisco Banha, Luis Costa (President of IAPMEI in 2009)


The state co-invests with Business Angels in innovative startups. The money from the State comes in the form of a loan to investment vehicles owned by business angels, that invest in startups. The return of the money follows asymetric exits to Government and Business Angels. 

Before 2009, business angel activity was very emerging and was not significant. There were some venture capitalists operating in the country. After this scheme, Business Angels became the main source of external equity funding for high innovative entrepreneurs. Many “virgin” business angels that started investing with more professional angels, became professional investors. 

The policy advisor(s) or leader(s) who have been key in introducing and/or designing this policy instrument:
Paulo Andrez, Ricardo Luz, Francisco Banha, Luis Costa (President of IAPMEI in 2009)



European Business Angels Network
European Business Angels Network