Investment & Fund Management

The partnership between the European Investment Fund (EIF) and the Instituição Financeira de Desenvolvimento (IFD) launched the Portugal Tech investment programme, aimed at addressing a significant decline in venture capital investment in Portugal since 2011. This decline was attributed to the crowding-out of national institutional investors, such as banks and pension funds, which left a gap in available funding for long-term investments, often referred to as "patient money."

To combat this issue, EIF and IFD each committed EUR 50 million to the programme, with the expectation of mobilizing an additional EUR 40 to 100 million from private investors. The initiative specifically targets tech transfer projects, start-ups, and SMEs in Portugal, with a focus on investments linked to research or academic institutions, incubators, and accelerators. The programme aims to select 4 to 6 experienced Portuguese teams to manage the venture capital and tech transfer funds, thereby enhancing the local venture capital ecosystem.

The Portugal Tech programme is designed to cover up to 70% of commitments to these funds, contingent upon the funds raising the remaining 30% from private and independent investors. This strategic approach not only aims to revitalize venture capital investment in Portugal but also leverages EIF's extensive experience in selecting effective venture capital teams, thereby fostering innovation and growth within the Portuguese market.