The Lisbon tech scene is buzzing with positivity, and there’s good reason for this optimism. Lisbon’s high-energy tech ecosystem is aligned with broader trends in European venture capital (VC) investment. Here’s a closer look at what is driving this, and how we support this thriving market.
A European VC Uptick
The European investment landscape is seeing a significant upswing. Early-stage funding has surged by 38% in 2024, with deal flow in Q1 2024 much higher than the preceding 18 months. Notably, the first half of 2024 has already seen more unicorns created than the whole of 2023, according to the Sifted H1 2024 Report.
Lisbon: A Leading Tech Hub
Over the past decade, Portugal has established itself as a leading tech hub. The country has made strategic investments in educational excellence with a focus on engineering. Public private investment in start-up and scale-up programs provide entrepreneurial support, attracting both investors and entrepreneurial talent. The results are impressive, with Portugal boasting several unicorns. The founders of which are often involved in mentoring the next generation of founders, so the cycle continues.
Lisbon has become a go-to destination for digital nomads and large corporations alike. International companies, like BMW and Bombardier, have established engineering hubs, leveraging the high-calibre local engineering talent. This talent is also cost-effective compared to other European tech hubs. The city’s proximity to the airport, widespread English proficiency, safety, and attractive climate – along with its unique status as the only capital with a beach – contribute to a balanced and appealing work-life environment.
|
Engagement with Investors
Our recent meetings with Private Equity and VC investors in Portugal were characterised by strong engagement and enthusiasm. The appetite for building teams and recruitment is robust, reflecting a renewed confidence.
A common theme in our discussions was the wide availability of top engineering talent for early-stage product development. However, challenges arise when growth stage companies need to hire senior executive talent to achieve business goals.
Taking a ‘borderless approach’ to hiring, for roles like CFOs, broadens the talent pool and infuses international perspectives.
We have worked with growth companies that internationalised their senior leadership team early and credit that with their achieving growth goals far more quickly. Such an approach injects different viewpoints and drives innovation.
Case Study:
A Portuguese business had engaged a leading global executive search firm for a CFO search seven months prior, but the role remained unfilled. Their investor introduced Alex Partners to them while they were in a pitch process with other search firms.
We were engaged on an exclusive mandate to hire the CFO. The selected candidate, a South African living in London, relocated to Lisbon. The CFO joined the business within 12 weeks of the search commencing.
During the post-project review, the business informed us that hiring the CFO and other international leaders into the business, helped them achieve their goals earlier than expected.
They based their decision to engage Alex Partners Executive Search on several factors:
- Our experience in quickly understanding the reason the role remained vacant seven months later and offering an agile solution
- Our proven track record of 100% completion on all mandated leadership roles
- Our experience in bridging the gap between the CEO and the Investment Fund
- Our proven track record of hiring senior leadership teams within aggressive timelines
- Our borderless approach; offering access to the best local and global talent simultaneously
We went on to hire several other roles for the same organisation.
Portugal’s support for innovation through excellent education, startup and scale-up programs, and talent attraction initiatives is to be celebrated. However, achieving international aspirations may require seeking leadership talent beyond the country’s borders.
|
Our Borderless Search Approach
At Alex Partners, we support high-growth organisations through our borderless search. Our founder-led approach focuses on understanding your business aspirations and ensuring your talent acquisition strategy aligns with those goals. We work collaboratively, and our model means that we share the risk throughout the process, making us a true value partner.
Observations Beyond Portugal
Interestingly, we have noted similar trends in Greece. The Greek government is making significant efforts to attract expatriates back home and support startup growth. Our conversations with senior executives looking to return to Greece highlight a growing focus on local and international investment in Greek startups.
Conclusion
Lisbon’s tech scene is thriving, driven by strategic national investments, a supportive ecosystem, and an increasing appetite for international talent. The city’s vibrant energy and unique attributes, makes it a prime location for growth and innovation. By leveraging borderless recruitment strategies and focusing on internationalisation, businesses can achieve their growth goals more quickly.
For more insights, read:
