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Lisbon March 2023
PORTUGUESE STARTUP SCENE REPORT
2022
Lisbon, March 2023
Lisbon March 2023
About Armilar Venture Partners
1
23
years of investment
experience
70+
companies backed
since 2000
20
exits, 3 IPOs
2
unicorns
4
dragons1
European
investment scope, focusing
on Digital companies with
tech at the core
1. A “dragon” is an investment that returns the entire fund
Lisbon March 2023 2
This report accounts for startups “with a Portuguese origin”
which includes startups with HQ outside Portugal
1. Includes startups “founded” in Portugal or by Portuguese founders. If the HQ is outside of Portugal, the startup needs to have a relevant number of employees in Portugal AND, Portuguese founders, or some International founders based in Portugal
Note: Analysis based on headquarters stated in LinkedIn or Crunchbase companies’ pages
Source: Armilar database
59%
81%
41%
19%
118 rounds
Startups with HQ elsewhere1
Startups with HQ in Portugal
Number of rounds
839 EUR M
Amount raised
(% of 2022 total) (% of 2022 total)
2022 Portuguese startup scene
5% Coimbra
3% Aveiro
9% Other
Many Portuguese startups / scaleups move their
HQ elsewhere after raising a relevant funding
round with international investors, others set-up
abroad from the start
Of which:
60% Lisbon
15% Porto
8% Braga
Lisbon March 2023
When a similar criteria is applied to other European ecosystems, we see that
Portugal is punching above its weight in nurturing high potential startups
3
Notes: Country data based on HQ and founding location according to Dealroom; includes countries with >= 300 million invested in the last 3 years and with more than 2 million in population; does not include Russia nor Ukraine;
Source: Dealroom
Number of unicorns per average amount invested in the last 3 years
(Unicorn per USD Billion invested)
0
2
4
6
8
10
2.4
2.0
3.0
3.1
3.2
3.3
3.5 3.5
3.7
4.1
4.3
4.3
4.6
5.0
5.9
6.7
7.1
7.2
3.2
4.2
2.9
1.9
3.2
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
4
In 2022, more than €800M was invested in Portuguese startups
2022 had a lower investment activity overall when compared to 2021 groundbreaking year
Estimated number of deals (# of rounds) Estimated investment amount (EUR Million)
Source: Armilar database
132
159
118
2020 2022
2021
-26%
354
839
2022
1 417
2021
2020
-41%
Coming from a record year in
2021, 2022 was marked by an
international market contraction,
due to the rise of interest rates
and consequent reduction of
tech companies' valuation in
the public markets
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
-60%
5
More than half was invested in a few later-stage rounds
Though Series B+ rounds decreased by 60% when compared to 2021
Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million)
Source: Armilar database
73 83
24
42
55
67
13
12
21
159
9
118
4
132
2022
6
2021
2020
-26%
11 97 109
96
237
219
488
2022
4
2021
13
80
354
839
43
1 212
1 417
2020
-41%
Series A Series B and beyond
Seed
Pre-Seed
Growth
’22 vs. ‘21
-33%
+22%
+75%
-71%
Growth
’22 vs. ‘21
+13%
+147%
-66%
Series B and beyond
were the most affected
by the international
environment in 2022
Most of the contraction in Pre-Seed
explained by a lower number of
rounds announced by Public entities
and BAs vs. previous years
Lisbon March 2023
In fact, the 10 largest funding rounds in 2022
represented +70% of the total amount raised
% of the total amount raised
32%
18%
8%
3%
3%
2%
2%
2%
1%
1%
Amount raised in 2022
$300M
€150M
$76M1
€25M
$25M
€20M
$19M
$15M
$12M
$12M
Valuation
$3B
N/a
N/a
N/a
N/a
N/a
N/a
N/a
N/a
N/a
Round
C
Growth
A
A
A
C
B
B
B
A
Startup
1 Includes equity and debt
Source: Pitchbook; Crunchbase; Dealroom; Armilar database
Round Investors
SoftBank Vision Fund 2, Accel, Sequoia, Index Ventures, Two Sigma
Ventures, General Catalyst, 9Yards, Adams Street, Base Growth, Indico
Capital Partners
6
72%
Antin Infrastructure Partners
Hiro Capital, Accel, Makers Fund
Verdane
Lightspeed Venture Partners, Build Collective, EX Capital, H&M Goup,
DCVC, SOSV’s HAX, Spider Capital, Momenta Ventures, Bombyx Capital
Partners, Faber Ventures, Fashion for Good, Shilling Capital Partner
Ventura Capital, Iberis Capital
Semapa Next
Bright Pixel Capital, Armilar Venture Partners, Faber Ventures, Join Capital,
Caixa Capital, EQT Ventures, Iberis Capital
Digital Turbine, Faurecia, Portugal Ventures, 200M
Draper Associates, Holt Xchange, Holdun Opportunity Fund, Brendan Holt
Dunn, Holdun Family Office, SDC Management, Expert Dojo, Uniera, Level
One Robotics
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
7
This market contraction was mostly reflected in the 2nd half of the year
This is mostly driven by the lag between starting to raise and announcing a round
Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million)
Source: Armilar database
28
45
55
28
13 11
21
21
25
30
30 37
5
8
5
7
6
15
5
69
76
56
H2 2022
H1 2022
3
4
66
3
52
H2 2020 H2 2021
2
90
H1 2020 H1 2021
2
6 5 54 56 54
52
58
124 114
60
159
445
766
442
46
2
122
2
624
532
885
H2 2021
H1 2021
42
7
H2 2020
H1 2020
16
H2 2022
27
38
232
28
6
215
H1 2022
-66%
Series B and beyond
Series A
Seed
Pre-Seed
Growth
H2 vs. H1
-90%
-8%
-5%
-13%
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
8
As a result, 2022 was a challenging year to raise follow-up rounds,
particularly in Series B+ stage
Pre-Seed to Seed conversion Seed to Series A conversion Series A to Series B conversion
Share of startups that raised the next round within a given period (cumulative)
Source: Pitchbook; Armilar database
Time since previous round
%
0
5
10
15
20
18 months 24 months
12 months
6 months
2020 cohort 2021 cohort
0
5
10
15
20
24 months
18 months
12 months
6 months
% %
While it became harder to raise during the 2nd
half of 2022, several companies raised internal
rounds (most not announced) and reduced cash
burn, delaying their next relevant round
0
5
10
15
20
24 months
18 months
12 months
6 months
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
9
Despite the market contraction, Pre-Seed and Seed continued its
upward trend, while Series A median round size had a slight reduction
Pre-Seed Seed Series A
100 114 150
2021
2020 2022
+32%
Median round size (EUR thousand) Median round size (EUR thousand) Median round size (EUR thousand)
658
1 500
2021
2020
1 275
2022
+18%
8 000
4 250
2022
7 277
2021
2020
-9%
Note: Analysis only include rounds with known amount;
Source: Armilar database
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
10
Both international and Portugal-based Investors were less active in 2022
Local investors reduction is mostly explained by a lower activity from Public entities and BAs
International Investors participated in >50% of the rounds… … while VCs were the most active local Investors
Source: Armilar database
52%
81%
Portugal-based
Investors
International
Investors
Delta vs 2021
(# of rounds)
-14%
-21%
18%
8%
20%
26%
40%
Other
Public
entities
Business
Angels
VC Investors
CVC or
Corporates
Delta vs 2021
(# of rounds)
+7%
-45%
-27%
-23%
+40%
Portugal-based
investors
Participation per type of Investor
(% of total rounds in 2022)
Participation per type of Investor
(% of total rounds in 2022)
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
11
Pre-Seed was the most impacted stage by the lower activity
from local Public entities
Pre-Seed Seed Series A
49%
0%
5%
2%
17%
25%
42%
International
Investors
4%
12%
Other
Public
entities
Business
Angel
17%
CVC/
Corporate
17%
Venture
Capital
25%
Participation in Portuguese startups’ investment rounds (% of total rounds)
Source: Armilar database
2022
2021
18%
4%
Venture
Capital
48% 48%
24%
49%
Public
entities
15%
Other
35%
CVC/
Corporate
International
Investors
Business
Angel
56%
18%
16%
27%
8%
42%
17%
24%
19%
Business
Angel
42%
83%
0%
67%
Other
33%
Public
entities
International
Investors
38%
CVC/
Corporate
33%
Venture
Capital
In 2022, Private Equity firms -
leveraging SIFIDE funds -
have increased participation,
particularly in the Series A
Several pre-seed rounds
realized during 2022 were
not yet announced
Lisbon March 2023
Portugal Ventures was the most active Investor,
followed by several local VC Investors
12
Most active Investors in Portuguese startups in 2022 (# of rounds)
27
18
9
8 8
7 7
6
5 5 5
4 4
3 3 3 3 3
Mustard
Seed
Maze
Semapa
Next
Hcapital
Bright
Pixel
Lince
Capital
Techstars EDP
Ventures
Wisenext
Caixa
Capital
Armilar
Iberis
Capital
Newzone
Demium
Indico
Capital
Shilling
Portugal
Ventures
Olisipo
Way
Faber
Ventures
Other (e.g. PE)
CVC/ Corporate
International Investors VCs Public Entities
Business Angels
-22 +3 -1 +3 +6 0 -6 +1 +3 0 +2 -2 +1 -1 0 -3 -3 +2
Delta
vs. 2021
(# of rounds)
Note: Includes Investors with at least 3 investments;
Source: Armilar database
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
13
Splitting by round stage, Portugal Ventures covered the full spectrum of early-stage
rounds in 2022, only surpassed by Demium Capital in Pre-Seed rounds
Pre-Seed (# of rounds) Seed (# of rounds) Series A (# of rounds)
Note: Includes Investors with at least 3 investments;
Source: Armilar database
6
4
3
Newzone
Portugal
Ventures
Demium
Capital
17
12
7
6
3
3
3
3
3
3
3
3
Techstars
Faber
Hcapital
Wisenext
Indico Capital
Newzone
Iberis Capital
Armilar
Shilling
Lince Capital
Portugal Ventures
Mustard Seed Maze
CVC/ Corporate
International Investors Business Angels
VCs Public Entities Other (e.g. PE)
5
4
3
3
3
3
Iberis Capital
Caixa Capital
Armilar
Shilling
Portugal Ventures
Bright Pixel Capital
Most active Investors in Portuguese startups in 2022 per round stage (# of rounds)
Lisbon March 2023
Demium is also the most active international Investor,
followed by several other VC and late-stage Investors
Note: Includes follow-on investments
Source: Armilar database
14
Most active international Investors in the last 3 years
(number of Portuguese startups invested)
19
11
3 3 3
2 2 2 2 2 2 2 2 2 2 2
Lisbon March 2023
1
2
3
4
5
6
7
8
9
10
11
12
Finally, Portuguese startup scene continues to be a B2B market,
with 70%+ of funding rounds and 80%+ of funding amount
Number of rounds (% of total number of rounds) Amount invested (% of total amount invested)
Source: Armilar database
15
70%
2021
27%
28%
73%
2020
72%
2022
30%
B2C
B2B
2022
2021
4%
82%
96%
18%
2020
7%
93%
In 2022, there were twice more
B2C Series A+ rounds vs. 2021
Lisbon March 2023
As insiders, we often feel that traditional information sources poorly reflect the reality of the Portuguese startup scene
• A relevant number of successful Portuguese startups move their headquarters (HQ) outside of Portugal, particularly after raising funds from international
investors and, consequently, they stop being considered as part of the Portuguese startup universe in traditional data sources, even when keeping most of
their operations in Portugal
• Information on funding rounds is spread across multiple information sources, and there is no widely adopted aggregating entity
As such, we felt the need to build our own database. We manually gather information based on publicly available, free sources, including (but not
limited to) news websites and investors' websites
We define the Portuguese startup scene in a broad sense, including startups with Portuguese roots but without their HQ in Portugal. In this report,
we include:
• Startups that have their HQ in Portugal (typically the standard definition in other databases), and
• Startups that do not have their HQ in Portugal but that have strong links to Portugal, namely by having Portuguese founders or international founders
located in Portugal, and a relevant local presence
Whenever a deal is made public, but round size or name (Seed, Series A, etc.) is unknown, we try to estimate them. We classify the round name based
on the perceived stage of the startup, using several variables, and assume a standard round size for each stage.
• To determine the stage, the main variables used are: prior rounds information, number of employees, round size, and product readiness
• To estimate the round size, we assume EUR 100 thousand for Pre-seed, EUR 400 thousand for Seed and EUR 3 Million for Series A rounds; we
acknowledge that this may evolve significantly with time, and we will review this criteria regularly
Given that exact transactional data is frequently not publicly available, data in this report should be considered as our educated guess of what
happened in the Portuguese startup scene. We also provide the data we used in this report in our Rows workspace
Report methodology
16
Lisbon March 2023 17
Contacts
Armilar Venture Partners, SGFCR, SA
Rua Tierno Galvan, Amoreiras, Torre 3, piso 17
1070-274 Lisbon, Portugal
Tel: +351 216 030 166
www.armilar.com
info@armilar.com
www.linkedin.com/company/armilar/
twitter.com/armilarvp

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Portuguese Startup Scene Report 2022

  • 1. Lisbon March 2023 PORTUGUESE STARTUP SCENE REPORT 2022 Lisbon, March 2023
  • 2. Lisbon March 2023 About Armilar Venture Partners 1 23 years of investment experience 70+ companies backed since 2000 20 exits, 3 IPOs 2 unicorns 4 dragons1 European investment scope, focusing on Digital companies with tech at the core 1. A “dragon” is an investment that returns the entire fund
  • 3. Lisbon March 2023 2 This report accounts for startups “with a Portuguese origin” which includes startups with HQ outside Portugal 1. Includes startups “founded” in Portugal or by Portuguese founders. If the HQ is outside of Portugal, the startup needs to have a relevant number of employees in Portugal AND, Portuguese founders, or some International founders based in Portugal Note: Analysis based on headquarters stated in LinkedIn or Crunchbase companies’ pages Source: Armilar database 59% 81% 41% 19% 118 rounds Startups with HQ elsewhere1 Startups with HQ in Portugal Number of rounds 839 EUR M Amount raised (% of 2022 total) (% of 2022 total) 2022 Portuguese startup scene 5% Coimbra 3% Aveiro 9% Other Many Portuguese startups / scaleups move their HQ elsewhere after raising a relevant funding round with international investors, others set-up abroad from the start Of which: 60% Lisbon 15% Porto 8% Braga
  • 4. Lisbon March 2023 When a similar criteria is applied to other European ecosystems, we see that Portugal is punching above its weight in nurturing high potential startups 3 Notes: Country data based on HQ and founding location according to Dealroom; includes countries with >= 300 million invested in the last 3 years and with more than 2 million in population; does not include Russia nor Ukraine; Source: Dealroom Number of unicorns per average amount invested in the last 3 years (Unicorn per USD Billion invested) 0 2 4 6 8 10 2.4 2.0 3.0 3.1 3.2 3.3 3.5 3.5 3.7 4.1 4.3 4.3 4.6 5.0 5.9 6.7 7.1 7.2 3.2 4.2 2.9 1.9 3.2
  • 5. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 4 In 2022, more than €800M was invested in Portuguese startups 2022 had a lower investment activity overall when compared to 2021 groundbreaking year Estimated number of deals (# of rounds) Estimated investment amount (EUR Million) Source: Armilar database 132 159 118 2020 2022 2021 -26% 354 839 2022 1 417 2021 2020 -41% Coming from a record year in 2021, 2022 was marked by an international market contraction, due to the rise of interest rates and consequent reduction of tech companies' valuation in the public markets
  • 6. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 -60% 5 More than half was invested in a few later-stage rounds Though Series B+ rounds decreased by 60% when compared to 2021 Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million) Source: Armilar database 73 83 24 42 55 67 13 12 21 159 9 118 4 132 2022 6 2021 2020 -26% 11 97 109 96 237 219 488 2022 4 2021 13 80 354 839 43 1 212 1 417 2020 -41% Series A Series B and beyond Seed Pre-Seed Growth ’22 vs. ‘21 -33% +22% +75% -71% Growth ’22 vs. ‘21 +13% +147% -66% Series B and beyond were the most affected by the international environment in 2022 Most of the contraction in Pre-Seed explained by a lower number of rounds announced by Public entities and BAs vs. previous years
  • 7. Lisbon March 2023 In fact, the 10 largest funding rounds in 2022 represented +70% of the total amount raised % of the total amount raised 32% 18% 8% 3% 3% 2% 2% 2% 1% 1% Amount raised in 2022 $300M €150M $76M1 €25M $25M €20M $19M $15M $12M $12M Valuation $3B N/a N/a N/a N/a N/a N/a N/a N/a N/a Round C Growth A A A C B B B A Startup 1 Includes equity and debt Source: Pitchbook; Crunchbase; Dealroom; Armilar database Round Investors SoftBank Vision Fund 2, Accel, Sequoia, Index Ventures, Two Sigma Ventures, General Catalyst, 9Yards, Adams Street, Base Growth, Indico Capital Partners 6 72% Antin Infrastructure Partners Hiro Capital, Accel, Makers Fund Verdane Lightspeed Venture Partners, Build Collective, EX Capital, H&M Goup, DCVC, SOSV’s HAX, Spider Capital, Momenta Ventures, Bombyx Capital Partners, Faber Ventures, Fashion for Good, Shilling Capital Partner Ventura Capital, Iberis Capital Semapa Next Bright Pixel Capital, Armilar Venture Partners, Faber Ventures, Join Capital, Caixa Capital, EQT Ventures, Iberis Capital Digital Turbine, Faurecia, Portugal Ventures, 200M Draper Associates, Holt Xchange, Holdun Opportunity Fund, Brendan Holt Dunn, Holdun Family Office, SDC Management, Expert Dojo, Uniera, Level One Robotics
  • 8. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 7 This market contraction was mostly reflected in the 2nd half of the year This is mostly driven by the lag between starting to raise and announcing a round Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million) Source: Armilar database 28 45 55 28 13 11 21 21 25 30 30 37 5 8 5 7 6 15 5 69 76 56 H2 2022 H1 2022 3 4 66 3 52 H2 2020 H2 2021 2 90 H1 2020 H1 2021 2 6 5 54 56 54 52 58 124 114 60 159 445 766 442 46 2 122 2 624 532 885 H2 2021 H1 2021 42 7 H2 2020 H1 2020 16 H2 2022 27 38 232 28 6 215 H1 2022 -66% Series B and beyond Series A Seed Pre-Seed Growth H2 vs. H1 -90% -8% -5% -13%
  • 9. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 8 As a result, 2022 was a challenging year to raise follow-up rounds, particularly in Series B+ stage Pre-Seed to Seed conversion Seed to Series A conversion Series A to Series B conversion Share of startups that raised the next round within a given period (cumulative) Source: Pitchbook; Armilar database Time since previous round % 0 5 10 15 20 18 months 24 months 12 months 6 months 2020 cohort 2021 cohort 0 5 10 15 20 24 months 18 months 12 months 6 months % % While it became harder to raise during the 2nd half of 2022, several companies raised internal rounds (most not announced) and reduced cash burn, delaying their next relevant round 0 5 10 15 20 24 months 18 months 12 months 6 months
  • 10. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 9 Despite the market contraction, Pre-Seed and Seed continued its upward trend, while Series A median round size had a slight reduction Pre-Seed Seed Series A 100 114 150 2021 2020 2022 +32% Median round size (EUR thousand) Median round size (EUR thousand) Median round size (EUR thousand) 658 1 500 2021 2020 1 275 2022 +18% 8 000 4 250 2022 7 277 2021 2020 -9% Note: Analysis only include rounds with known amount; Source: Armilar database
  • 11. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 10 Both international and Portugal-based Investors were less active in 2022 Local investors reduction is mostly explained by a lower activity from Public entities and BAs International Investors participated in >50% of the rounds… … while VCs were the most active local Investors Source: Armilar database 52% 81% Portugal-based Investors International Investors Delta vs 2021 (# of rounds) -14% -21% 18% 8% 20% 26% 40% Other Public entities Business Angels VC Investors CVC or Corporates Delta vs 2021 (# of rounds) +7% -45% -27% -23% +40% Portugal-based investors Participation per type of Investor (% of total rounds in 2022) Participation per type of Investor (% of total rounds in 2022)
  • 12. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 11 Pre-Seed was the most impacted stage by the lower activity from local Public entities Pre-Seed Seed Series A 49% 0% 5% 2% 17% 25% 42% International Investors 4% 12% Other Public entities Business Angel 17% CVC/ Corporate 17% Venture Capital 25% Participation in Portuguese startups’ investment rounds (% of total rounds) Source: Armilar database 2022 2021 18% 4% Venture Capital 48% 48% 24% 49% Public entities 15% Other 35% CVC/ Corporate International Investors Business Angel 56% 18% 16% 27% 8% 42% 17% 24% 19% Business Angel 42% 83% 0% 67% Other 33% Public entities International Investors 38% CVC/ Corporate 33% Venture Capital In 2022, Private Equity firms - leveraging SIFIDE funds - have increased participation, particularly in the Series A Several pre-seed rounds realized during 2022 were not yet announced
  • 13. Lisbon March 2023 Portugal Ventures was the most active Investor, followed by several local VC Investors 12 Most active Investors in Portuguese startups in 2022 (# of rounds) 27 18 9 8 8 7 7 6 5 5 5 4 4 3 3 3 3 3 Mustard Seed Maze Semapa Next Hcapital Bright Pixel Lince Capital Techstars EDP Ventures Wisenext Caixa Capital Armilar Iberis Capital Newzone Demium Indico Capital Shilling Portugal Ventures Olisipo Way Faber Ventures Other (e.g. PE) CVC/ Corporate International Investors VCs Public Entities Business Angels -22 +3 -1 +3 +6 0 -6 +1 +3 0 +2 -2 +1 -1 0 -3 -3 +2 Delta vs. 2021 (# of rounds) Note: Includes Investors with at least 3 investments; Source: Armilar database
  • 14. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 13 Splitting by round stage, Portugal Ventures covered the full spectrum of early-stage rounds in 2022, only surpassed by Demium Capital in Pre-Seed rounds Pre-Seed (# of rounds) Seed (# of rounds) Series A (# of rounds) Note: Includes Investors with at least 3 investments; Source: Armilar database 6 4 3 Newzone Portugal Ventures Demium Capital 17 12 7 6 3 3 3 3 3 3 3 3 Techstars Faber Hcapital Wisenext Indico Capital Newzone Iberis Capital Armilar Shilling Lince Capital Portugal Ventures Mustard Seed Maze CVC/ Corporate International Investors Business Angels VCs Public Entities Other (e.g. PE) 5 4 3 3 3 3 Iberis Capital Caixa Capital Armilar Shilling Portugal Ventures Bright Pixel Capital Most active Investors in Portuguese startups in 2022 per round stage (# of rounds)
  • 15. Lisbon March 2023 Demium is also the most active international Investor, followed by several other VC and late-stage Investors Note: Includes follow-on investments Source: Armilar database 14 Most active international Investors in the last 3 years (number of Portuguese startups invested) 19 11 3 3 3 2 2 2 2 2 2 2 2 2 2 2
  • 16. Lisbon March 2023 1 2 3 4 5 6 7 8 9 10 11 12 Finally, Portuguese startup scene continues to be a B2B market, with 70%+ of funding rounds and 80%+ of funding amount Number of rounds (% of total number of rounds) Amount invested (% of total amount invested) Source: Armilar database 15 70% 2021 27% 28% 73% 2020 72% 2022 30% B2C B2B 2022 2021 4% 82% 96% 18% 2020 7% 93% In 2022, there were twice more B2C Series A+ rounds vs. 2021
  • 17. Lisbon March 2023 As insiders, we often feel that traditional information sources poorly reflect the reality of the Portuguese startup scene • A relevant number of successful Portuguese startups move their headquarters (HQ) outside of Portugal, particularly after raising funds from international investors and, consequently, they stop being considered as part of the Portuguese startup universe in traditional data sources, even when keeping most of their operations in Portugal • Information on funding rounds is spread across multiple information sources, and there is no widely adopted aggregating entity As such, we felt the need to build our own database. We manually gather information based on publicly available, free sources, including (but not limited to) news websites and investors' websites We define the Portuguese startup scene in a broad sense, including startups with Portuguese roots but without their HQ in Portugal. In this report, we include: • Startups that have their HQ in Portugal (typically the standard definition in other databases), and • Startups that do not have their HQ in Portugal but that have strong links to Portugal, namely by having Portuguese founders or international founders located in Portugal, and a relevant local presence Whenever a deal is made public, but round size or name (Seed, Series A, etc.) is unknown, we try to estimate them. We classify the round name based on the perceived stage of the startup, using several variables, and assume a standard round size for each stage. • To determine the stage, the main variables used are: prior rounds information, number of employees, round size, and product readiness • To estimate the round size, we assume EUR 100 thousand for Pre-seed, EUR 400 thousand for Seed and EUR 3 Million for Series A rounds; we acknowledge that this may evolve significantly with time, and we will review this criteria regularly Given that exact transactional data is frequently not publicly available, data in this report should be considered as our educated guess of what happened in the Portuguese startup scene. We also provide the data we used in this report in our Rows workspace Report methodology 16
  • 18. Lisbon March 2023 17 Contacts Armilar Venture Partners, SGFCR, SA Rua Tierno Galvan, Amoreiras, Torre 3, piso 17 1070-274 Lisbon, Portugal Tel: +351 216 030 166 www.armilar.com info@armilar.com www.linkedin.com/company/armilar/ twitter.com/armilarvp