Lisbon: European Tech Hub and Remote Work Haven

Lisbon's tech scene is rapidly gaining traction and becoming a highly sought-after destination for tech startups, with impressive growth rates and increasing global recognition.

Despite being relatively new, the startup ecosystem in Lisbon has experienced exceptional growth, with a consistent 30% increase in investment annually since 2016. This growth rate is twice the average seen across the rest of Europe, indicating the promising potential of the city's startup scene.

As of 2022, startups based in Lisbon have seen an incredible 26-fold increase in value, now totalling an impressive €21 billion. What's more, Portugal has outpaced Spain, Italy, and Greece combined in terms of launching unicorns - boasting a growing number of startups that have reached a valuation of $1 billion or more.

An innovative and optimised digital ecosystem

Lisbon's tech ecosystem is fuelled by several key factors that set it apart from other cities. For one, the city offers an exceptional quality of life, with a vibrant cultural scene, affordable cost of living, and a mild climate with 300 days of sunshine each year. The government has also implemented residency programmes and incentives to attract foreign entrepreneurs, making it easier for startups to set up in the city.

Another crucial ingredient in Lisbon's success is its highly skilled engineering talent pool. With around 90,000 engineering graduates each year, Portugal has the second-highest rate of engineering graduates in the European Union, according to Eurostat. The cost of this talent is also competitive, making it an attractive option for startups looking to scale their operations.

Lisbon's strategic location also 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.

It is no wonder, then, that Lisbon has become a hub for digital nomads, with the largest community of remote workers in the world. All of these factors combine to make Lisbon a truly unique and efficient tech ecosystem, with plenty of opportunities for startups and entrepreneurs to thrive.

Vibrant and engaged coworking System

Lisbon's thriving tech community is fostered by an active coworking scene, creating a collaborative environment that brings together entrepreneurs, founders, freelancers, and tech talent. The city is also a hub for tech events and meet-ups, with hundreds of gatherings taking place each year, including the Web Summit, the world's largest event of its kind. This vibrant ecosystem of innovation and collaboration provides fertile ground for new startups to emerge and potentially become the next unicorn.

Speaking of unicorns, Portugal has already created an impressive seven to date, including Farfetch, Talkdesk, Feedzai, Remote, Sword Health, Anchorage Digital, and Outsystems, which is the world's first market-leading, low-code software development system, currently valued at €8.9 billion. 

Portugal's unicorn count is almost double that of neighbouring Spain, which has four, and triple that of Italy, which has only two. In fact, Portugal is one of the top five countries in the world for unicorns per capita, a testament to the country's commitment to fostering a strong and supportive tech ecosystem.

Full speed ahead

Lisbon's tech ecosystem shows no signs of slowing down, as evidenced by the launch of the start-up accelerator Unicorn Factory Lisboa in October 2022. As an umbrella brand for Startup Lisboa, which has already supported over 460 start-ups that have collectively raised €410 million and created more than 5,000 jobs, Unicorn Factory Lisboa is uniquely focused on helping scale-ups or established start-ups that already have a product or service in operation and a team in place, but need additional support to reach the next level.

At the official launch event during the opening night of Web Summit 2022, Carlos Moedas, mayor of the city of Lisbon, emphasised that innovation is not just an idea, but a process. With Unicorn Factory Lisboa, the city is doubling down on its commitment to fostering innovation and growth in the tech sector, positioning Lisbon as a prime destination for ambitious entrepreneurs and start-ups looking to scale their businesses.

Low-cost and high-value business location

Recent data from the Organisation for Economic Co-operation and Development (OECD) has revealed that Portugal is now the most cost-effective country in Europe for businesses to operate in. This, coupled with Portugal's skilled pool of tech talent and attractive tax incentives for multinational corporations, has made Lisbon area an increasingly popular location for some of the world's biggest companies to establish their tech hubs.

Among these global giants are Google, Siemens, IKEA, Cisco, Unilever, Nestle, Volkswagen, and Mercedes-Benz. These corporations have recognised the numerous benefits of establishing themselves in Portugal, including access to high-quality talent, favourable business conditions, and a thriving start-up ecosystem. 

With these factors working together, it is no surprise that Lisbon is fast becoming a leading destination for businesses looking to gain a competitive edge in the tech industry.

Source: Euronews