Is Portugal a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Portugal has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Portugal gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Portugal

Funding is one of the most critical ingredients in building a successful startup – and Portugal offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Portugal's early-stage funding scene is dynamic, supported by various players. Notable VC firms active in this space include Portugal Ventures (a state-backed firm), Armilar Venture Partners, Indico Capital Partners, and Bynd Venture Capital. Government initiatives like Startup Portugal offer support programs such as the Startup Voucher and Scale Up Portugal, providing grants and other forms of assistance. Angel networks also contribute, with examples like COREangels Lisbon. Despite progress, challenges persist, including a need for more early-stage venture funding beyond government grants and navigating bureaucracy. While seed and Series A rounds have shown resilience, attracting later-stage capital can be more difficult, sometimes requiring startups to look internationally. Competition with other ecosystems for talent and investment is also a factor.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Portugal has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Portugal has a thriving startup and innovation culture, particularly in Lisbon and Porto. The ecosystem is characterized by a growing number of coworking spaces, serving freelancers, digital nomads, and startups alike. There is significant entrepreneurial activity, supported by government initiatives like Startup Portugal and a strong network of incubators and accelerators. Portugal hosts numerous tech events, including the prominent Web Summit, attracting global attention and providing networking opportunities. While there are many standardized programs and accelerators, there is also support for early-stage founders through initiatives like the Startup Voucher and programs offering mentorship and resources, indicating a blend of support for both early-stage and more mature startups.

For many entrepreneurs, the energy and resources available in Portugal can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Portugal, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Portugal is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Portugal offers a strong talent pool for startups, supported by numerous universities and technical institutions producing skilled graduates. The workforce is known for technical skills, creativity, and multilingualism, providing a competitive edge. Key areas include technology, software development (Python, Java, JavaScript), AI, and data science. Local talent supports entrepreneurial growth through innovation, adaptability, and a collaborative ecosystem fostered by government initiatives and incubators. Portugal's quality of life and visa programs also attract international talent, further enriching the pool.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Portugal can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Portugal boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Portugal offers a robust ecosystem for startups, featuring numerous incubators and accelerators like Startup Lisboa and Startup Braga, providing mentorship, resources, and networking opportunities. A national network of incubators extends support beyond major cities. Funding is available through private investment and co-investing initiatives such as the 200M Fund, with significant growth in venture capital in recent years. Government initiatives, notably the Startup Portugal strategy established in 2016, play a crucial role. Programs like Startup Voucher offer financial aid and mentorship for early-stage ideas, while Startup and Tech Visas attract international talent. The public sector actively supports startup development through various measures, including tax incentives and simplified procedures, fostering a favorable environment for growth and internationalization.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Portugal. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Portugal Be Considered the Best Place to Launch a Startup?

There’s no doubt that Portugal provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Portugal face several hurdles. Competition is increasing, particularly with established global tech companies, requiring startups to find niche markets or seek government support. While Portugal traditionally offered a lower cost of living, rising housing and living expenses, especially in major cities like Lisbon and Porto, are diminishing this advantage and impacting talent retention due to lower salaries compared to other countries. Regulatory issues and bureaucracy also pose significant challenges, with complex and time-consuming processes for business registration and compliance with labor laws and EU regulations.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Portugal or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Portugal offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash