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A VIBRANT ECOSYSTEM

UP AND UP WE GO

raising the interest of partners and investors as Portugal becomes more and more a reference as a Fintech Hub.

The Portugal FinLab - the 1st innovation hub - has announced a second edition, after the outbreaking success and demand for the first one. Portuguese regulators are showing their openness to listen to the market and help entrepreneurs, which is a crucial tool for the sustainable growth of the industry.

International Fintechs are looking to Portugal as a quickly emerging Fintech hub in Europeand have announced to move their operations to the country as part of their strategy.

Conditions are in place, and this ecosystem shows no signs of slowing down.

 

he Portuguese ecosystem is moving at an accelerated pace. Disruptive solutions created by Portuguese are

T

ECOSYSTEM

SNAPSHOT

Portugal Fintech went directly to the top 30 Portuguese Fintechs to get to know their story and needs, as well as their view on how the ecosystem is evolving. They are the direct source of information to an insightful snapshot of the current state of the industry.

 

MAPPING THE ECOSYSTEM
  • 16 of the top 30 companies founded in the past  3 years;
     

  • Insurtech and Lending & Credit as the most popular segments;

  • More than € 210 M raised from both national and international VCs;
     

  • More than 1.100 employes;
     

  • 70% of the top companies are headquartered in Portugal, while the remaining are either double-based or based outside national territory;
     

  • Almost 80% operate under a B2B business model.

 

TOP VERTICALS BY AMOUNT OF FUNDING
REGION BY AMOUNT OF FUNDING
FINTECHS BY STAGE
AMOUNT OF FUNDING TO DATE
  • Fintechs within the Regtech & Cybersecurity space have raised the highest amounts of funding, followed by Blockchain & Crypto;

  • 22% of the total amount of funding comes from US-based Fintechs, which are 10% of the sample;

  • 37% of the companies are in Seed Stage and 67% of them are Early Stage (Seed to Series A);

  • 37% of the companies have raised less than 500k, and 33% raised above 2 M of funding.

 

THROUGH THE LENSES

OF THE STARTUPS

GREATEST HARDSHIPS
MAIN AREAS TO IMPROVE

The top 30 Portuguese​ Fintechs indicated that the greatest hardship faced this year is Player Cooperation, a different topic from the ones pointed out in 2018 which were both the Marketing Mentality and Sales Cycle. On the other hand, the main area to improve in the ecosystem is, similarly to last year, Regulation.

 

POLICY AND REGULATION

Policy and Regulation have a large impact on the Fintech ecosystem - in order for the system to be prepared to accommodate innovation, Policy and Regulation need to evolve hand in hand with technology.

 

INCUMBENTS

The relationship developed with incumbents can be crucial for the survival of a startup. At the same time, incumbents frequently find themselves in need of tech-driven solutions with which they can partner with. Collaboration is, without doubt, essential for the ecosystem.

 

WHICH ARE THE GREATEST HARDSHIPS WHEN WORKING WITH INCUMBENTS?
POLICY AND REGULATION

Venture Capital activity has been increasing as Portugal becomes a reference in the Fintech scene. From January to March 2019, 21 operations were registered, which sum up an amount of € 85 M, according to the M&A monthly report of Transactional Track Record in March 2019, which represents a growth of 203% relative to the same period in 2018.

 

WHAT ARE THE GREATEST OBSTACLES WHEN
APPROACHING INVESTORS?
WHICH DO YOU SEE INVESTORS POINTING OUT AS
POSITIVE POINTS ABOUT PORTUGUESE FINTECHS?
TALENT

Technology and innovation would not have reached their current state if it wasn't for the deep talent pool. From founders to developers, talent is the oil that makes the machin run.

From the sample, 60% of the companies are composed by teams of only Portuguese.

 

HOW MUCH DO YOU ESTIMATE THE INCREASE IN THE COST OF TALENT TO BE?
WHAT SKILLS ARE THE MOST DIFFICULT TO FIND OR HIRE IN THE JOB MARKET?

THE FINTECH

HOUSE

WHERE FINTECH LIVES IN PORTUGAL

Continuing the work to create the best conditions for the development of the Fintech ecosystem, Portugal Fintech is gathering the entire network in one single place. The Fintech House is the physical point of contact for an entire industry that does not stop evolving and that now has the capacity to grow even faster, through a closer relationship between all its parties.

More than a place where startups can work or base their offices, this is the must-go place for Fintech in Portugal. A home to foster the proximity between, not only startups, but also the whole ecosystem, such as investors, partners, technical consultants, legal offices, incumbents or regulators. This is the place where innovation in technological and financial services happens and lives.

 

COLLABORATION IS KEY

The Fintech House is born from the collaboration between Portugal Fintech and Sitio, one of the main co-working operators in Portugal which counts with locations around the country. It is the combination between the expertise of creating great places to work and the knowledge of a community enabler, which allows to create a space with everything startups need to develop their solutions.

As a collaboration itself, and understanding the major importance of synergies and joint ventures in the modern entrepreneurship world, the whole Fintech House's environment is optimized to promote engagement between members. The House is composed of:

 

An entire floor dedicated to networking, relaxing, meeting and events. This is where Founders meet for a coffee; where unexpected talks with innovation teams of incumbents come from; or where startups can encounter VCs in town.

An auditorium to host the best events in the world of Fintech, from innovation hackathons and tech talks to demo days and company offsites.

The House hosts startups from completely different sizes, with a focus on having a diversity of projects going on. It also welcomoes different players representing the ecosystem, being possible to find a bank, an insurance company, a tech and consulting team, a legal firm and an infrastructure & Cloud partner co-living at the space.

AN ICONIC PLACE

The Fintech House is starting at an iconic place in the heart of Lisbon - Palácio das Varandas ("The Balcony Palace"). A five-floor building with the  people, capacity to around 170 people, dedicated to companies in the areas of Fintech, Insurtech, Regtech and Cybersecurity.

OUR GOAL IS TO HELP YOU THRIVE

A Palace - An entire building with 5 floors and 1500m2;

In the Heart of the City - Praça da Alegria 22, right next to Avenida da Liberdade;

Where Fintech Lives - 170 seats to startups, incumbents, investors and other parties;

Auditorium - 100 m2 to receive the top events of the industry;

Be part of Sitio - Use any of the 10 locations, from Lisbon to Porto;

Network and Learn - Attend the best events and be part of the Fintech community,