Portugal’s tech scene has undergone a remarkable transformation over the past decade, emerging as one of Europe’s most dynamic startup ecosystems. This growth can be attributed to a combination of strategic government policies, a strong talent pool, and an attractive business environment.
Portugal’s Startups – By the Numbers
- As of November 2024, there were 4,719 startups registered in Portugal with an average monthly wage of €2,000. This is double the national average.
- Among these startups operating in Portugal, 40 of them are unicorns (valued at over USD 1 billion), and six of these have Portuguese DNA.
- The RNi – Portugal Incubators program has 125 certified incubators and accelerators with more than 4,900 projects under incubation and 9,000 jobs created.
Portugal Encourages Startups Through Government Policy
The government has actively supported entrepreneurship by offering favorable government policies. These include:
IFICI (formerly the NHR scheme) – a tax regime designed for startup employees and highly qualified professionals relocating to Portugal – a 20% IRS tax rate for ten years
Empresa Na Hora – allows individuals to carry out the entire process of setting up a civil or commercial company in commercial form at a single counter within a few moments
IRS Jovem – offering a more favorable tax regime for self-employed and dependent workers for up to 35 years of age
Mar 2030 – Financial incentives for the creation and expansion of aquaculture companies in the form of productive investments and the processing of fisheries and aquaculture products
Favorable immigration policies currently available include:
The D2 Visa – for individuals who have already invested or intend to engage in investment activities in Portugal
Startup Visa – Residence visa for entrepreneurs, which aims to attract investment, talent, and capacity for innovation to Portugal
Tech Visa – Certification program addressed to companies that wish to attract highly qualified and specialized staff to Portugal
ARI Golden Visa – Residence permit for Investment activities, for individuals looking to invest more than €500,000
EU Blue Card – a work and residence permit for non EU/EEA nationals
One Stop Shop – Official point of contact for the Portuguese startup ecosystem, where you can get all the information you need to get to know the Portuguese entrepreneurial ecosystem – 3,600 people from 110 countries have already participated
A New Startup Law
In May 2023, Portugal’s legal definition of a startup went into effect. Of course, with clear regulation comes greater clarity, which provides a stable foundation for startups to thrive. According to the law, Portugal defines a startup as follows:
- Employs less than 250 workers
- Has its head office or at least 25 employees in Portugal
- Is less than 10 years old
- An annual turnover that does not exceed 50 million euros
- Complies with one of the following conditions:
- obtained investment from Banco Português de Fomento
- concluded at least one round of risk capital financing
- to have been recognized by ANI – Agência Nacional para a Inovaçāo
The New Stock Options Tax Regime
There are also new tax incentives that have been implemented to encourage more startup formation in Portugal. Stock options used to be taxed in Portugal at 53% at the moment of vesting, but there is now 0% tax at the time of vesting. In addition, stock options used to taxed at 28% upon disposal, and now this tax rate has been reduced to 14% in Portugal.
Streamlining regulations to make it easier to start and scale a business. These factors, combined with relatively low operational costs and a high quality of life, have turned cities like Lisbon and Porto into magnets for both local and international entrepreneurs.
Another key factor driving Portugal’s startup success is its emphasis on innovation and digital transformation across sectors like AI, clean energy, health tech, and fintech. The country’s commitment to fostering talent and ideas is evident in initiatives such as Lisbon’s Unicorn Factory and events like Web Summit, which annually brings global attention to the region and allows startups to connect with investors, partners, and media. Lisbon’s Unicorn Factory, for instance, provides support and mentorship to high-growth startups on the cusp of achieving unicorn status, positioning Portugal as an attractive destination for venture capital.
The rising number of startups is also drawing investment from venture capitalists who are attracted to Portugal’s forward-thinking tech landscape, reliable infrastructure, and collaborative startup culture. For investors, Portugal represents an opportunity to invest in innovation with a high growth potential. This diverse list of 15 standout startups across multiple industries highlights why Portugal has become a prime location for tech investment, showcasing the variety, innovation, and drive that define the country’s rapidly maturing tech ecosystem.
1. Bhout
- Location – Lisbon, Portugal
- Founders – Mauro Frota and Pedro Barata
Established in 2021, Bhout is a fit-tech startup that has developed an AI-powered smart boxing bag. This innovative equipment integrates sensors, artificial intelligence, and machine learning to combine gaming with fitness, offering users an interactive workout experience. The Bhout bag tracks metrics such as punch accuracy, speed, and power, and features light rings to guide workout rhythms. In 2023, Bhout raised €10 million in seed funding, co-led by Explorer Investments and Lince Capital, to expand its operations.
2. Barkyn
- Location – Porto, Portugal
- Founders – André Jordão and Ricardo Macedo
Launched in 2017, Barkyn is a subscription-based platform providing personalized pet food and veterinary support. The company aims to enhance pet well-being through tailored nutrition and accessible healthcare services. Barkyn has expanded its services across Southern Europe and continues to grow its customer base.
3. Smartex.ai
- Location – Porto, Portugal
- Founders – António Rocha, Gilberto Loureiro, and Paulo Ribeiro
Founded in 2018, Smartex.ai utilizes artificial intelligence to detect defects in textiles during manufacturing. This technology reduces waste and enhances production efficiency in the textile industry. Smartex.ai has raised $27.6 million in Series A funding to further develop its solutions.
4. Cleanwatts
- Location – Coimbra, Portugal
- Founders – J. Basilio Simões, James McDougall, Jorge Landeck, Luísa Matos, and Michael Pinto
Established in 2020, Cleanwatts is a clean energy startup focused on decentralizing renewable energy. The company develops climate tech solutions to make clean energy accessible and affordable. Cleanwatts secured $17.1 million in Series A funding to expand its operations.
5. Kencko
- Location – Lisbon, Portugal
- Founder – Tomás Froes
Founded in 2017, Kencko produces organic, plant-based products aimed at making it easier for people to consume fruits and vegetables. The company’s products are available worldwide, and it has raised $3.4 million in seed funding to support its mission.
6. Pleez
- Location – Lisbon, Portugal
- Founders – Francisco Calheiros and João Fernandes
Pleez is a food-tech startup that helps restaurateurs make better data-informed business decisions. The company provides tools to optimize menu offerings and pricing strategies, enhancing profitability. Pleez has raised $1.65 million in seed funding to expand its services.
7. Sensei
- Location – Lisbon, Portugal
- Founders – Vasco Portugal and Paulo Carreira
Established in 2017, Sensei enables stores to operate without checkouts or cash transactions. The company’s AI-powered platform provides a seamless shopping experience by automating the payment process. Sensei has raised $6.5 million in seed funding to develop its technology.
8. Infraspeak
- Location – Porto, Portugal
- Founders – Filipe Ávila da Costa and Luís Martins
Founded in 2015, Infraspeak offers an Intelligent Maintenance Management Platform (IMMP) that connects assets, teams, and IoT devices. The platform streamlines maintenance operations, improving efficiency and reducing downtime. Infraspeak has expanded its services across Europe and South America.
9. Jungle AI
- Location – Lisbon, Portugal
- Founders – Arnoud Kamerbeek and João Moura
Established in 2016, Jungle AI builds scalable AI technology to help improve the operations of renewable energy sources. The company’s solutions optimize energy production and maintenance, contributing to a more sustainable energy sector. Jungle AI has raised $4.98 million in Series A funding to advance its technology.
10. Unbabel
- Location – Lisbon, Portugal
- Founders – Vasco Pedro, João Graça, and Hugo Silva
Founded in 2013, Unbabel combines artificial intelligence with human translation to provide fast and reliable language services for businesses. The platform enhances global customer experiences by supporting seamless multilingual communication, which is particularly beneficial for customer service teams worldwide. Unbabel recently announced that it was chosen to collaborate with Nova University of Lisbon, the Portuguese Government, and Instituto Superior Técnico to launch the Portuguese Large Language Model (LLM) by early 2025.
11. Uniplaces
- Location – Lisbon, Portugal
- Founders – Miguel Amaro, Ben Grech, and Mariano Kostelec
Launched in 2012, Uniplaces is an online platform that simplifies the process of finding and booking accommodation for students worldwide. With verified listings and a user-friendly booking experience, it has become a go-to resource for the international student community looking for housing solutions.
12. Sound Particles
- Location – Leiria, Portugal
- Founder – Nuno Fonseca
Founded in 2016, Sound Particles specializes in 3D audio software used by major video game companies and Hollywood studios. Their technology has been utilized in productions such as Indiana Jones, Oppenheimer, Mission Impossible, Game of Thrones, Frozen, Dune, and Star Wars. The company is currently developing personalized audio solutions that replicate real-world sound experiences through headphones, leveraging 3D models and artificial intelligence.
13. Smartex
- Location – Porto, Portugal
- Founders – António Rocha, Gilberto Loureiro, and Paulo Ribeiro
Established in 2018, Smartex focuses on reducing waste in the textile industry by integrating artificial intelligence and machine learning into textile production processes. Their technology detects defects in real-time during manufacturing, aiming to enhance quality control and minimize material waste. Smartex has garnered attention for its innovative approach to sustainable manufacturing and has been recognized in various startup competitions.
14. Windcredible
- Location – Porto, Portugal
- Founders – Filipe Fernandes (CEO), António Santos (COO), and Nelson Batista (CTO)
Founded in 2023, Windcredible develops advanced urban vertical axis wind turbines designed for decentralized energy generation in urban environments. Their turbines are self-starting at low wind speeds, operate silently, and are built for durability with minimal maintenance. In August 2024, Windcredible began a pilot phase for its self-consumption wind turbines, collaborating with companies like Nestlé Portugal, EDP, Galp, and Prio. The startup has raised €300,000 from investors, including Portugal Ventures and Techstars, and aims to produce 50 turbines in 2025.
15. Sword Health
- Location – Porto, Portugal
- Founders – Virgílio Bento and Márcio Colunas
Founded in 2015 with Portuguese DNA, Sword Health is a health-tech startup that provides a digital platform for physical therapy. Through its AI-driven solution, Sword Health allows patients to perform physical therapy exercises from home under the supervision of licensed therapists. This solution has been particularly valuable in increasing accessibility and efficiency in physical rehabilitation.
This list showcases the diversity and innovation within Portugal’s startup landscape, spanning fields from health-tech and AI to logistics and sustainable energy. With initiatives like Lisbon’s Unicorn Factory fostering growth and providing resources, these startups represent just a fraction of the promising companies that are helping to establish Portugal as a leading technology hub in Europe.
Lisbon’s Unicorn Factory – Cultivating Portugal’s Next Generation of Billion-Dollar Startups
Lisbon has rapidly emerged as a hotspot for entrepreneurship and innovation, becoming a major draw for startups with global ambitions. Central to this growth is Lisbon’s Unicorn Factory, a dedicated initiative designed to support high-potential startups, equipping them with the resources they need to scale and achieve unicorn status—a valuation of $1 billion or more. Launched by the Lisbon City Council in collaboration with Startup Lisboa, the Unicorn Factory is transforming Lisbon into a nurturing ground for the tech titans of tomorrow.
What is the Unicorn Factory?
Lisbon’s Unicorn Factory (Av. Infante Dom Henrique 143) is both a physical space and an ecosystem designed to foster rapid growth for Portuguese startups with high scalability potential. The initiative provides startups with workspace, mentorship, access to a network of investors, and strategic partnerships across various sectors. The focus is on high-tech fields such as fintech, artificial intelligence, health tech, and sustainability, all areas where Portugal is seeing a surge in innovation.
Why Lisbon?
Lisbon offers a unique blend of factors that make it an attractive location for startups. It has a low cost of living relative to other European tech hubs, a talented workforce, and strong government support for innovation. The city also hosts the annual Web Summit, one of the world’s most influential tech conferences, which attracts global attention to Portugal’s startup ecosystem. Lisbon’s Unicorn Factory taps into this momentum and provides a platform that maximizes the resources available to startups in the region.
Supporting High-Growth Startups
Lisbon’s Unicorn Factory targets startups in the crucial “scale-up” phase, providing resources that help them overcome common growth challenges such as funding, scaling operations, and accessing international markets. The initiative is aimed at bridging the gap for companies that have already validated their product and are ready to expand quickly, providing support to reach milestones and, ultimately, achieve unicorn status.
Unicorn Success Stories and Aspirants
Since the launch of Lisbon’s Unicorn Factory, Portugal has already produced several unicorns, including companies like OutSystems and Feedzai. These success stories are paving the way for a new generation of startups hoping to follow suit, and the Factory actively promotes their growth trajectories. Through its network and support structure, it enables high-growth companies to access the mentorship and capital necessary to become industry leaders.
International Appeal and Talent Attraction
Lisbon’s Unicorn Factory not only supports local startups but also attracts international talent and companies seeking a foothold in Europe. This has led to a dynamic community of innovators and investors within the city which has created a mutually reinforcing cycle of talent and investment that fuels further growth. With Portugal’s favorable tax policies for foreigners, the city has seen an influx of skilled professionals, enhancing its reputation as a tech destination.
The Future of Unicorn Factory and Lisbon’s Tech Ecosystem
The vision for the Unicorn Factory extends beyond producing billion-dollar companies. It aims to position Lisbon as a top global startup hub by building a sustainable, supportive ecosystem that attracts talent and capital. Lisbon’s Unicorn Factory reflects a long-term commitment from both government and private entities to make Lisbon a launchpad for world-changing technologies.
The Unicorn Factory is setting Lisbon apart as a leading innovation center in Europe, and with the backing of the city’s entrepreneurial infrastructure, it’s no surprise that Lisbon is quickly becoming one of the most attractive cities for startups in the world. For Portugal, the success of these startups represents both economic growth and a global rebranding as a country where innovation thrives.
Final Thoughts
Portugal’s startup landscape is thriving, fueled by a blend of innovation, supportive policies, and international interest. The 10 featured startups exemplify the nation’s entrepreneurial spirit, tackling challenges across diverse sectors—from AI and health tech to clean energy and logistics. With Lisbon’s Unicorn Factory paving the way for future unicorns and initiatives like Web Summit bringing global visibility, Portugal is firmly positioned as a key player in the European tech ecosystem. As these companies continue to grow and break new ground, Portugal’s reputation as a hub for forward-thinking, high-impact startups is only set to grow.
