According to data from the TTR platform, Portuguese startups secured an impressive €886 million in funding, marking a 55% increase compared to 2023. This remarkable growth signals a renewed confidence in the country's tech scene, positioning Portugal as one of Europe’s most promising hubs for entrepreneurship.

After a period of stagnation caused by global economic challenges, 2024 saw a resurgence in startup funding. While the total number of funded companies declined by 20.8% to 122, the overall investment amount surged, indicating that larger funding rounds were becoming the norm. This trend aligns with global patterns, where venture capital funding grew by 5%, reaching $274.6 billion worldwide.

One of the main drivers behind this resurgence was the artificial intelligence (AI) sector. AI startups accounted for 37% of total venture capital investment and 17% of all deals worldwide in 2024. Portugal mirrored this trend, with AI-driven innovation attracting substantial backing from investors. The growing role of AI in business operations, from automation to data analysis, is reshaping industries and making startups in this field highly attractive to venture capitalists.

Key Players in Portugal’s Venture Capital Scene

Several venture capital firms played a crucial role in fueling Portugal’s startup boom. Portugal Ventures, the state-backed venture capital firm, led with twenty deals worth €30.4 million. Indico Capital Partners followed closely with thirteen deals amounting to €155.9 million, while Lince Capital and Iberis Capital also made significant contributions, with the latter investing €187.95 million across ten deals.

The resurgence of large funding rounds was another highlight of the year. Powerdot, a Portuguese company specializing in electric vehicle charging, secured a record-breaking €100 million investment—the largest announced round since 2022. Other notable deals included Tekever’s €72 million funding for its aerospace technology and Indie Campers’ €35 million to expand its campervan rental business. Portugal’s unicorn, Sword, raised €29.2 million to further develop its pain treatment solutions, while emerging startups like Infraspeak, Oceano Fresco, and Sensei also secured multi-million-euro investments.

What Lies Ahead for Portugal’s Startup Ecosystem?

While the impressive performance in 2024 is encouraging, challenges remain. Access to funding continues to be a major hurdle, particularly in comparison to the United States, where venture capital is six times more abundant. European pension and insurance funds still have limited exposure to venture capital investments due to regulatory constraints, making it harder for startups to secure the capital they need to scale.

However, there are promising signs for the future. The European Commission has acknowledged the need for increased startup financing, with initiatives underway to direct more EU funds towards emerging companies. Additionally, the rapid adoption of AI and other deep-tech solutions is expected to drive further investment in Portugal’s startup landscape. The final quarter of 2024 already hinted at a strong 2025, with global venture capital investment surging to $86.2 billion—a two-year high and a 53% increase from the previous year.

To sustain this momentum, Portugal will need to enhance its investment climate by fostering better collaboration between the public and private sectors, encouraging risk-friendly investment policies, and supporting startups in their transition from research to market-ready solutions. If these efforts continue, Portugal could solidify its position as one of Europe’s top destinations for startup innovation and investment in the years to come.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes