Lisbon Tech Start-ups are worth EUR 21.4 B in 2022 compared to EUR 816 M in 2016 according to a new report by Dealroom. The combined enterprise value of start-ups founded and headquartered in Lisbon has grown 27 times since 2016.
While Start-ups that relocated outside of Lisbon account for over 90% of value creation, Lisbon-based Start-ups alone are sixfold their size in 2022. VC investment into Lisbon-founded Start-ups have reached € 333 M, an all-time high as it is over threefold the amount invested in 2021. Companies with their HQ in Lisbon have raised 96% of the capital, while the remaining 4% was raised by relocated Start-ups.
The report produced by Dealroom refers to all Start-ups, Scale-ups and Unicorns that are headquartered in Lisbon as well as those that later relocated abroad but still maintain a significant presence in the city. Start-ups, Scale-ups and Unicorns founded in Lisbon with headquarters abroad include OutSystems, Unbabel, Talkdesk and SEEDRS. Those that have headquarters in Lisbon include Dreamshaper, CODACY, Leadzai and Jungle.
Lisbon now has two Unicorns, namely Talkdesk and Outsystems. Unicorns are former Start-ups that reached over US$ 1 B valuation, while Future Unicorns are Start-ups that are valued above € 200 M and have received funding in the last 5 years. Rising Stars are Start-ups that have raised above €4 M and have received funding in the last 5 years.
Lisbon’s two Unicorns, OutSystems and Talkdesk have a combined value of € 18.6 B. The two Future Unicorns, FRVR and Unbabel, have a combined value of € 0.6 B, while Lisbon’s 23 Rising Stars have a combined value of € 1.1 B. The most promising Lisbon Start-ups include Oscar, Apres Technologies and Rely.io and the top Start-up sectors include Transportation as well as Real-Estate.
According to Diogo Moura, the City Councilor for Economy and Innovation at the Lisbon City Council, “This report shows visible signs of progress with record levels of investment, a strong pipeline of promising Start-ups and an ecosystem that is becoming specialized with the rise of leading industries such as Fintech, Health and Food-tech.”
Lisbon’s Unicorns, OutSystems and Talkdesk, are two of the most valuable companies in Southern Europe. The Top-valued Unicorns in the sub-region include Evolution, that is located in Birkirkara in Malta and is valued at € 20.4 B, followed by OutSystems in Lisbon that is valued at € 9.5 B and Talkdesk in Lisbon that is valued at € 9.1 B. The Top 10 companies in the sub-region include Farfetch in Porto that is ranked 6th and is valued at € 3.0 B as well as Anchorage Digital in Porto that is ranked 8th and is valued at € 2.7 B.
International investors have an increasingly important role in Lisbon’s Start-up ecosystem, contributing to over 80% of the total investment with 70% of rounds in 2022. Local investors also play an important role in helping foster the next generation of successful Start-ups in this thriving ecosystem, with Food-tech, Fintech and Health leading by number of funding rounds.
According to Pedro Ribeiro Santos, Partner at Armilar Venture Partners: “The number of local and international entrepreneurs and investors in the region is increasing significantly and is a sign that the ecosystem is evolving in the right direction.”
While Lisbon’s Start-up ecosystem accounts for 67% of Portugal’s Tech value, their value has grown eight-fold since 2018 and is therefore higher than that of other leading ecosystems in Southern, Central and Eastern Europe. In addition to this, Lisbon has one of the highest funding growth-rates among European ecosystems and is growing faster than more mature ones.
While Lisbon is a fertile ground for successful Start-ups, the Dealroom study has shown that its universities are fostering the next generation of entrepreneurial talent.
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