Why Are Tech Firms Moving To Portugal
Article by - 5/23/2021
When it comes to startup ecosystems, a few names that pop in our minds are Silicon Valley, Berlin, Tokyo, and others. However, in the last few years, there’s been rapid growth in Lisbon’s startup circuit. Tech in Lisbon is making immense progress, with new businesses leveraging it to solve problems.
Tech firms are slowly moving to what is unofficially called Europe’s Silicon Valley. Here’s why!
Governments Interest For Startups : In the last few years, the Portuguese government is investing a good chunk into supporting and nurturing the startup culture in Lisbon. It has come up with various strategies and schemes to encourage tech firms worldwide to set up new bases in its capital city.
Right from co-investing alongside venture capitalists to providing startup visas and handing out vouchers for incubations and businesses, the government is doing it all!
Low Real Estate Cost : Setting up physical offices is the number one task for businesses when they move, and they have to shell out a lot of money for the same.
In Lisbon, the real estate prices are quite economical compared to other options such as Berlin, London, and Switzerland.
As a result, businesses will be able to buy spaces at lower prices. Moreover, the quality of life here is higher, ensuring that people can live comfortably for extended periods.
Highly Qualified Professionals : Portugal has a rich education system that ensures graduates looking for software jobs in Lisbon are immensely talented. Another significant factor is that there are more Ph.D. holders here than in other places.
For startups, this is an essential factor to consider. Simply because the initial members they hire would, later on, be in higher leadership positions, they will need people who are innovators and creators.
Another important aspect is communication. A majority of the graduates here are well-versed in English. This will make the interaction between employees across countries easier.
At the same time, since Lisbon is in the middle of the Eastern and Western Hemisphere, the time difference would be manageable. This would give more room for easier and seamless communication. To add to that, depending on job roles, people can also work in startups in Lisbon from remote locations.
As important as great talent is, it’s also necessary to consider the cost of hiring them. And hiring individuals with such vast knowledge is quite economical for companies in Lisbon compared to other places.
For instance, it will cost twice as much to hire a person with the same set of qualifications and experience in Berlin. When it comes to London, it’s three times more. It is four times more in Switzerland.
Flexibility Of Startups : Since the ecosystem is relatively young, it’s easier for businesses to take new directions and explore technologies such as blockchain and AI.
So startups or big tech firms that move in the place can experiment and open newer avenues of problem-solving and businesses.
Tech Communities Conclaves And Meetups : An ecosystem is only as robust as its culture, and Lisbon is a testament to that. There are regular tech meetups where different developers and innovators can interact with each other.
This gives room for sharing knowledge, understanding diverse perspectives on important subjects, and even collaboration.
Today Portugal is the fourth fastest-growing city for tech startups, and these are some of the prominent factors that contribute to its proliferation.