Portuguese startup ecosystem: Pros & cons for investors & founders - YouTube

Channel: C茅dric Waldburger

[3]
Hey, everyone, it's been a few days and Elean, and I have come to Lisbon.
[8]
We've been here enjoying the good food and meeting lots of people along with the good
[13]
weather for the past few days.
[14]
Today, I just want to mention a few things.
[16]
Why we've come here and why I think Lisbon or Portugal, in general, is such a good ecosystem
[21]
for startups.
[22]
Right now.
[23]
We are spending four weeks of our summer here with the intent to both take a bit of time
[27]
off and enjoy the good weather and the good food as well as get to know the ecosystem
[31]
here a bit better because I do believe that Portugal right now offers a lot of incentives
[36]
for startups and founders to come here and to thrive.
[39]
I believe that in the next few years, we'll see a lot of big companies come out of Portugal.
[43]
And that's why we want to make sure we spend a bit of time with the ecosystem here and
[47]
get connected.
[48]
So what are those incentives?
[49]
Well, it starts with what I've already mentioned two or three times because it's so good, there's
[53]
good food, there's great weather for most of the year, fairly warm.
[57]
It's close to the water great sceneries, great lights, So living here is kind of nice.
[62]
Then second, I think the ROI on your living expenses are great.
[65]
Portugal is still reasonably cheaper, at least good bang for your buck.
[69]
Here in Lisbon, a bit less so than when you move outside of Lisbon, for example, up in
[73]
Braga or Porto, things are even a bit cheaper down here.
[76]
But even here, I would say you're paying less for a good meal or for a night out, and you
[81]
will be paying in Berlin, and you get much better weather.
[84]
Number three, and this is where it becomes a bit more startup specific.
[88]
It's fairly easy to get someone to move here and set up here, get a visa to get a work
[93]
visa.
[94]
So politically, the system is set up in a way right now where it does allow for good
[99]
talent to come in and start work here.
[101]
Number four is a program called 200 M. 200 M is a government fund that matches local
[107]
funding into startups.
[109]
So let's say Tomahawk.VC or even a local investor here decides to invest in a startup that's
[114]
based in Portugal, and then the government will match that funding one to one, so if
[119]
we invest 500 k, the government will invest 500 k as well.
[122]
And they give me as the outside investor an option to take over their stake for the next
[127]
two or four years depending on the startup the area that they're in, and so on and so
[131]
forth but for a very reasonable interest rate.
[134]
So that basically means for me, as an investor, I can come in, I can invest, and then two
[139]
or three or four years down the road, I can double down onn my stake, and I can double
[143]
my commitment for a very little cost, which is something that's great and very attractive
[147]
for investors.
[149]
And if it's attractive for investors, that means it's also great for startups, because
[152]
it's easier to raise bigger rounds here.
[154]
And then last but not least, the fifth factor why I think it's great to build your startup
[159]
here is that there's quite a bit of talent being brought out of Portuguese universities
[163]
as well.
[164]
They have two big technical universities between Prague and Porto.
[167]
And then there's also a very well known Technical University near Lisbon.
[170]
So that's three technical universities basically within three hours of driving off each other.
[175]
So there's a lot of talent that is available here for you to build your startup with.
[180]
Are there, downsides?
[181]
Of course, there are downsides as well.
[182]
Number one, Portugal is a very small country, there's only a population of about 10 million.
[188]
The upside that I see in that is that there's always a lot of incentive to think bigger
[192]
than your home market, something that startups in Switzerland need to learn quickly as well,
[196]
where the market is even smaller and more fragmented.
[198]
But even with 10 million, that's not a big market.
[200]
So clever founders realize that they build their MVP here, they test their product, but
[205]
then they don't try to perfect their product-market fit here.
[208]
But instead, they try to move out and go into a different market quickly.
[211]
Second, there are not all the funds locally, right now, there's probably three or four
[216]
bigger venture funds and an equal amount of angel groups.
[221]
So raising capital from local investors doesn't give you too much choice.
[224]
It's a fairly small ecosystem.
[227]
But like us like Tomahawk.VC, there are lots of funds from the outside now looking at Portugal,
[232]
especially Lisbon, and creating more regular touchpoints.
[235]
So that shouldn't be an issue going forward.
[237]
One question that I've had for a lot of people that I met in the ecosystem here is the next
[241]
natural market for anyone growing their startup in Portugal.
[245]
Is that Brazil?
[246]
Or is it Spain, Spain being its neighboring and Brazil being a huge market that's far
[251]
away, but shows the same language.
[252]
And from what I've understood so far, most companies here, when they grow past Portugal,
[258]
they would rather expand to Europe, including Spain, instead of crossing the Atlantic and
[263]
going into Brazil, just because the cultural gap is too big between those two countries.
[268]
But if you have any insights, please do let me know in the comments.
[271]
To quickly summarize, I think there are lots of factors that speak for Portugal as the
[277]
place where you want to build your next technology startup.
[280]
We are definitely going to spend more time here.
[281]
We're very interested in this market.
[283]
We're going to keep networking with everyone that's based here, and we're going to look
[287]
into how we can partner with the local ecosystem.
[289]
If you have any ideas for us where to look next, other areas in Europe, or elsewhere
[294]
in a world that you think are perfectly positioned to bring out great companies in the future,
[299]
please let me know in the comments, and with that, have a beautiful day.
[302]
Stay curious, and I'll talk to you soon.