Lisbon is quickly gaining a reputation as a highly desirable location for tech startups due to its rapid growth and increasing global recognition.
Despite its relative newness, the city’s startup ecosystem has experienced exceptional growth with a consistent 30% increase in investment annually since 2016 – twice the average growth rate seen in the rest of Europe.
As of 2022, startups based in Lisbon have seen an impressive 26-fold increase in value, totaling €21 billion. Additionally, Portugal has surpassed Spain, Italy, and Greece combined in launching unicorns, with a growing number of startups reaching a valuation of $1 billion or more.
Lisbon’s tech ecosystem is fueled by several factors that make it stand out.
Firstly, the city offers a high quality of life with a vibrant cultural scene, affordable cost of living, and a mild climate with 300 days of sunshine annually. The government has also implemented residency programs and incentives to attract foreign entrepreneurs, making it easier for startups to set up in the city. Lisbon’s highly skilled engineering talent pool, with around 90,000 engineering graduates each year, is another crucial ingredient in its success. Portugal also has a competitive cost of talent, making it an attractive option for scaling startups.
Lisbon’s strategic location provides easy air links to other large tech hubs, making it an ideal base for companies with global ambitions. Portugal’s fibre optic network coverage ranks 11th in the world, providing a reliable and high-speed internet connection for businesses. All of these factors combine to make Lisbon a unique and efficient tech ecosystem with plenty of opportunities for startups and entrepreneurs.
Lisbon’s active coworking scene fosters a collaborative environment that brings together entrepreneurs, founders, freelancers, and tech talent, creating a vibrant ecosystem of innovation and collaboration that provides fertile ground for new startups to emerge and potentially become the next unicorn. Portugal has already created seven impressive unicorns, almost double that of neighbouring Spain and triple that of Italy, making it one of the top five countries in the world for unicorns per capita.
Recent data from the OECD reveals that Portugal is now the most cost-effective country in Europe for businesses to operate in, with Lisbon being an increasingly popular location for some of the world’s biggest companies to establish their tech hubs. These corporations, including Google, Siemens, IKEA, Cisco, Unilever, Nestle, Volkswagen, and Mercedes-Benz, have recognized the benefits of establishing themselves in Portugal, including access to high-quality talent, favorable business conditions, and a thriving start-up ecosystem.
With all these factors at play, Lisbon is fast becoming a leading destination for businesses looking to gain a competitive edge in the tech industry.
