Thoughts on German-Portuguese Startup Scene Collaboration

Yesterday, I had the honour of participating in a panel at Re:publica focused on how the Portuguese and German startup scenes can collaborate more closely. Here's my quick thoughts on Portugal.

If there's enough interest, I'll update this blog post with a list of relevant initiatives, incubators, accelerators and key activities that anyone thinking about collaborating or operating in Portugal should know about.

The Portuguese Ecosystem

1. The Portuguese startups/scaleups with the highest valuation, according to Dealroom, are predominantely B2B. If you're planning on starting a company in Portugal, picking a B2B strategy and having a foot in another market is a good strategy.
2. Farfetch and Seedrs are notable exceptions. But both founding stories imply working with other markets (UK) from an early stage. This can be a lesson for entrepreneurs aiming to operate in Portugal.
3. I personally don't believe startups operating in a B2C market can take off successfuly in Portugal at an early-stage. Unless they have a powerful brand and backing or are bundled/integrated with another product consumers already trust. This strategy can work in Germany but the Portuguese market is too small. Having said that, Barkyn is proving me wrong.
4. Access to knowledge and a network is still more important than capital. But without capital only people who are better off financially get a chance at building a company. This is a diversity and inclusivity issue. There are inititives led by the government that aim to support entrepreneurs in early stage but due to the size of our market and state of the economy, there's not a lot of room for failure. My empirical experience tells me that founders in the German market usually get 1-2 more tries. And this means they can learn from their mistakes and are more likely to succeed.
5. The main challenges of Portuguese startups are competitive compensation and talent retention. This can be an opportunity for German companies that would like to get established there.
6. Portuguese graduates are highly qualified from an academic point of view but lack practical experience since student working jobs don't exist in Portugal. In comparison, it's often easier for students in Germany to start companies or create value in existing companies because they are exposed to this reality earlier.
7. Despite the emigration levels, my sense, from an intercultural point of view is that the Portuguese are loyal to the companies they work for and fond of staying in Portugal. There are highly qualified professionals, above the avarage in the rest of Europe who choose to stay, despite their struggles, until they feel like they don't have another choice. This can be an opportunity for German companies that would like to get established in Portugal. If you're able to provide competitive compensation, you'l have a chance at attracting and retaining amazing talent.
8. Many Portuguese companies pick the US or the UK as their primary market. The German market is big. There is an opportunity for deeper collaboration and I believe a way to get there is by investing in deeper relationships and bilateral programmes.

Some of the Portuguese companies with highest valuation in June 2023

Resources for entrepreneurs looking to enter in Portugal

1. Launch in Lisbon. Three days to learn everything you need to know about how to set up your life and business in Lisbon. By Startup Lisboa.
2. Soft Landing. Your partner to land your business in Portugal. The provide services that go from visa support, company incorporation and assist with paperwork to market entry consulting.
3. Startup Portugal. Their mission is to develop activities of public interest for the promotion of entrepreneurship in Portugal. Their website has detailed ecosystem reports, information on funding and additional goverment initiatives to support entrepreneurs. You can book an online or offline meeting.
4. 351. The Portuguese Startup Community. The door to the local startup scene. By joining the Slack Community, you'll have direct access to founders, investors and major players of the Portuguese startup scene. 351 promotes monthly startup talks, co-founder matchmaking and the Portugal Tech Week.

Notable Incubators and Accelerators

1. Startup Lisboa. The most well-known startup incubator in town. They provide office space in downtown, as well as access to a strong network of mentors and investors.
2. From Start to Table. 8-week program for early-stage startups operating in the food and beverages space. The main strengths are the local networking opportunities and a 10,000€ prize. Why Not Soda founded by 2 Germans living in Berlin passed through their programme.
3. Maze X. Early-stage 3-month programme with investment for startups focused on social impact, sustainability, healthcare and future of learning and work. Among their portfolio you can find Ivy Protocol with 2 Germans based in Berlin as part of the founding team.