02 Jul 2019
The Portugal Tech programme, which was initiated in December 2018 by the Development Finance Institution (IFD), in collaboration with the European Investment Fund (FEI), has already proven to be highly successful.
The Portugal News reports that the programme aims to attract private and institutional capital for investment in technology-based companies, startups, SMEs and Portuguese Midcaps. In this short period of time, Portugal Tech has chosen three venture capital and private equity funds and invested in a dozen Portuguese companies.
The IFD and FEI had agreed on a sum of €100 million, €60 million of which were directed towards three private funds managed by Portuguese teams, being Indico Capital Partners, Armilla Venture Partners and Vallis Capital Partners.
In order for the above funds to have reached their first closing, financing from Portugal Tech and the FEI’s strict selection process were both fundamental, allowing them to mobilise an added €140 million by Portuguese as well as foreign institutional investors.
Despite there being a four to five year time limit for each fund to choose to invest in startups and SMEs, there already are 10 invested companies. These include Vawlt Technologies, SoundParticles, Bitclic, Attentive, Barkyn and Zenklub.
Pedro Siza Vieira, the Deputy Minister of the Economy, said: “Sustainable economic growth requires mobilisation of financing, and the Portugal Tech Programme is an essential contribution to the positive evolution of the national economy,” adding that “the Programme strengthens the Government’s commitment to support innovation, entrepreneurship and qualified employment.”