Published on and written by Cyril Jarnias
Portugal has established itself in recent years as a top destination for entrepreneurs and investors. With a dynamic startup ecosystem, competitive operational costs, and an attractive tax framework, the country offers fertile ground for business development. However, raising funds remains a major challenge for many entrepreneurs. Here is a comprehensive guide to help you successfully raise funds in Portugal in 2025.
The Hidden Gems of Portuguese Financing: Explore All Your Options
Portugal has a diverse range of financing sources for businesses. It is crucial to understand each option thoroughly to choose the one that best fits your needs.
Venture Capital on the Rise
The Portuguese venture capital sector has seen significant growth in recent years. Funds like Portugal Ventures, Indico Capital Partners, and Faber Ventures have become major players in the ecosystem. These funds typically focus on high-growth tech startups.
Business Angels: An Expanding Network
The business angel network has grown considerably in Portugal. Organizations like the Federação Nacional de Associações de Business Angels (FNABA) facilitate connections between entrepreneurs and individual investors. These investors bring not only funds but also their expertise and network.
Crowdfunding: A Popular Alternative
Crowdfunding platforms like PPL and Seedrs are gaining popularity in Portugal. They allow entrepreneurs to raise funds from a broad audience while validating their concept with the market.
Public Grants: Valuable Support
The Portuguese government has implemented several business support programs. The Portugal 2030 program, for example, provides grants and subsidized loans for innovative projects. The Agência Nacional de Inovação (ANI) also offers support for research and development.
Traditional Banks: Still in the Game
Although less flexible than the previous options, Portuguese banks like Caixa Geral de Depósitos or Millennium BCP offer credit lines for businesses. The Capitalizar program, backed by the government, facilitates access to bank credit for SMEs.
Good to Know:
Portugal offers a favorable tax status for “Non-Habitual Residents” (NHR), which can be particularly interesting for foreign entrepreneurs looking to settle in the country.
The Art of Winning Over Investors: Prepare an Impeccable Pitch Deck
Once you have identified potential funding sources, it is time to prepare a solid pitch deck to convince investors.
A Compelling Business Plan
Your business plan should be clear, concise, and convincing. It must present your vision, business model, market analysis, and financial projections. Don’t forget to tailor your plan to the specifics of the Portuguese market.
A Stellar Team
Investors bet as much on the team as on the idea. Highlight your team’s skills and experience. If you are a foreign entrepreneur, show how you plan to integrate into the local ecosystem.
A Unique Value Proposition
Clearly explain what sets your business apart from the competition. Emphasize your competitive advantage and how you plan to maintain it.
Realistic and Supported Numbers
Your financial projections must be realistic and based on solid assumptions. Be prepared to justify every figure in front of potentially skeptical investors.
A Clear Exit Strategy
Investors will want to know how they can get their money back (and more). Present different credible exit scenarios, whether through an IPO or an acquisition.
Good to Know:
Portugal has implemented a “startup visa” that facilitates the relocation of foreign entrepreneurs to the country. This visa can be an additional asset to mention in your pitch deck.
The Perfect Pitch: Captivate Your Portuguese Audience
Once your pitch deck is ready, it is time to present it to potential investors. How you present your project is just as important as its content.
Adapt to the Local Culture
Although Portugal is open to international influences, it is important to understand local cultural nuances. The Portuguese generally appreciate a direct but courteous approach. Avoid arrogance and show your willingness to integrate into the local ecosystem.
Master Your Pitch
Prepare a concise and impactful pitch. You should be able to present the essentials of your project in a few minutes. Practice answering tough questions investors might ask.
Demonstrate Your Traction
Investors want to see concrete proof of your potential. Present sales figures, customer testimonials, or strategic partnerships to demonstrate the viability of your project.
Be Ready to Pivot
Show your flexibility and ability to adapt to investor feedback. The Portuguese market may have specificities you haven’t anticipated.
Networking, Networking, Networking
Portugal has a very relationship-driven business culture. Attend startup ecosystem events, like Web Summit in Lisbon, to meet potential investors in a less formal setting.
Good to Know:
Many Portuguese investors appreciate entrepreneurs who show a genuine willingness to get involved in the country’s economic development. Highlight how your project can contribute to the local economy.
The Art of Negotiation, Portuguese Style: Find the Right Balance
Once you have sparked investor interest, the crucial step of negotiating the investment terms begins.
Understand Your Company’s Valuation
Before starting negotiations, have a clear idea of your company’s value. Use valuation methods suited to your sector and stage of development. Don’t hesitate to consult local experts to ensure your valuation aligns with Portuguese market standards.
Be Flexible on Deal Structure
Portuguese investors may propose different investment structures. Be open to options like convertible notes or preferred shares. Each structure has its pros and cons; make sure you understand them well.
Negotiate Protective Clauses
Investors will seek to protect their investment through various clauses. Negotiate balanced terms that protect both your interests and those of the investors. Pay particular attention to clauses on dilution, preemptive rights, and drag-along rights.
Think Long Term
During negotiations, keep your long-term goals in mind. Don’t sacrifice control of your company for short-term investment. Look for investors who share your vision and can support you over the long haul.
Get Professional Support
Don’t hesitate to hire a lawyer specializing in fundraising in Portugal. They can help you navigate local legal intricacies and negotiate favorable terms.
Good to Know:
Portugal has established an attractive tax framework for investors, notably through the “Non-Habitual Resident” regime. This can be a strong argument in your negotiations with foreign investors.
Cultivating the Investor Relationship: The Key to Long-Term Success
Once the investment is secured, it is crucial to maintain a solid relationship with your investors. This step is often overlooked, but it is essential for the long-term success of your business.
Communicate Regularly
Keep your investors informed about your company’s progress. Send monthly or quarterly reports detailing your achievements, challenges, and future plans. Transparency is key to maintaining trust.
Involve Your Investors
Leverage your investors’ expertise and network. Seek their advice on strategic decisions. Portuguese investors generally appreciate being involved beyond just providing capital.
Honor Your Commitments
Make sure to meet the goals and milestones you presented during the fundraising. If you need to deviate from your initial plan, clearly explain why and how you intend to adapt.
Prepare for the Future
Always keep an eye on the next step. If you plan future fundraising rounds, keep your current investors informed of your plans. They might be interested in reinvesting or connecting you with other potential investors.
Cultivate Your Network
Continue to actively participate in the Portuguese startup ecosystem. Your success and involvement can attract new investors for your future fundraising rounds.
Good to Know:
Portugal regularly hosts networking events for startups and investors. Attend them with your current investors to strengthen your bonds and expand your network.
Raising funds for your business in Portugal may seem like a major challenge, but with careful preparation, a clear strategy, and an approach tailored to the local culture, you can maximize your chances of success. Portugal offers an increasingly favorable environment for startups and investors, with a growing ecosystem and exciting opportunities. By following this guide, you will be well-equipped to navigate the Portuguese funding landscape and propel your business to new heights.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
