As the SIM Conference returns to Porto this week for its third year, there’s a real sense of how much Portugal’s wider startup ecosystem has evolved since the event first launched. What was once viewed as an emerging startup destination is now increasingly recognised as one of Europe’s most talked about innovation hubs.
SIM – which stands for Startups & Investment Matching – launched in 2023 to bring founders, investors and innovators together, with a focus on meaningful networking and ecosystem-building. Since the inaugural event, Liberty has been there with boots on the ground, seeing first-hand how Portugal’s startup scene has evolved from a promising challenger market to a globally recognised tech hub.
At Liberty, our ties to Portugal go back much further than the recent international spotlight on Lisbon and Porto’s tech scenes however. We’ve delivered workshops, supported events and worked with a host of Portuguese clients across the ecosystem. Our founder is even based in the country!
When the SIM Conference debuted in 2023, much of the conversation centred around attracting founders, venture capital and international visibility, helped by the momentum surrounding Web Summit and Portugal’s growing reputation for quality of life, affordability and connectivity.
Fast forward to 2026, and the ecosystem looks significantly more mature. According to Startup Portugal’s latest Startup & Entrepreneurial Ecosystem Report, Portugal is now home to 5,091 active startups – an 8% increase year-on-year – generating €2.856bn in annual turnover and employing approximately 28,000 people. Portuguese startups are also generating €1.571bn in exports, with more than 55% now reporting significant international activity.
Investment activity has remained strong, too. While Portuguese startups raised a record €1.5bn in 2021 during the post-pandemic tech boom, recent figures suggest the ecosystem continues to show resilience despite tougher global market conditions. According to TTR platform data, Portuguese startups secured €886m in funding during 2024 – a 55% increase from 2023.
Part of that growth has been fuelled by ecosystem-building initiatives such as Unicorn Factory Lisboa. Since launching in 2022, the initiative has expanded rapidly, with hubs dedicated to AI, health and blockchain technologies. According to Lisbon mayor Carlos Moedas, 17 unicorn companies have moved to Lisbon since the programme was established.
Portugal’s startup landscape has also become increasingly international. English is now effectively the default language across much of the community, while founders and investors from Europe, the US and Brazil increasingly view Portugal as a serious base for scaling businesses.
However, rapid growth has also brought challenges. For the FT, Michael Dempsey highlights how talent retention remains a major issue, with Portugal increasingly competing against larger and often higher-paying markets such as the UK, Germany and Spain for highly skilled workers. Rising rents and increased living costs, particularly in Lisbon, have also changed the economics of operating within the ecosystem.
Still, walking around SIM this week, it’s hard not to notice how much Portugal’s startup ecosystem has developed. It’s no longer about whether Portugal belongs within Europe’s startup landscape, but how it sustains its momentum and positions itself for the next phase of innovation.
