Curiosities you don't know about the Lisbon Business Ecosystem

Lisbon has tried to reinvent itself as the main technological and innovative center in Europe and, in recent years, has come close to achieving this goal.

We have seen why Lisbon is such a desirable place for young talent from around the world. Cheap rentals, a thriving cultural scene, absurd levels of sunshine and a high quality of life are some of those reasons. But Lisbon must have much more to offer entrepreneurs than just sun and landscapes. California also has sun and landscapes (and a bridge similar to ours, let's say in passing). So, why Lisbon? It is precisely to make Lisbon a unique destination for attracting talent, that projects have been developed to monitor and, consequently, accelerate the growth of the city's innovation and entrepreneurship ecosystem.


LEME is one of those projects, co-created by BGI and the Municipality of Lisbon. Lisbon Entrepreneurial Monitoring Ecosystem (LEME) is a pilot to monitor the city’s ecosystem with about 50 respondents incubated in the Municipality. Based on the data collected, the pilot will be considered for the future implementation of a monitoring system for all startups present in Lisbon, with socio-political-economic conclusions, and essential information for policy makers and public agencies to support entrepreneurship. Through this, it will be possible to draw a panorama of the Lisbon Business Ecosystem, monitor progress over time, facilitate the strategic growth of the enterprise and create value.


Through a questionnaire to 46 startups, we were able to compile several discoveries. These are some facts that you probably don’t know about our Startup Ecosystem.


Startup roots

  • 91% have their current headquarters in Portugal. 10% originally had their headquarters in other countries: United Kingdom, Netherlands, Brazil, USA, Mexico and Spain.

  • 26% of startups were created after an incubation or acceleration program. 11% are university developments.


Evaluation

  • Most startups have a valuation of more than 1 million euros.

  • Evaluation of startups in acceleration programs is 2.5x higher than the evaluation of a startup that was not in an acceleration program.


Industries

  • Most profitable: Hardware and IoT and eCommerce.

  • Raised more capital: Security and Corporate Software.

  • Greater appreciation: Security and HR.

  • On average, a startup in Lisbon raises more than 0.5 million euros and takes 2 years to raise capital.


Financing

  • Of the analyzed startups, 31 raised capital, a total of 23,975 million euros.


Target markets

  • The number of B2B Corporate was similar to B2C.

  • When it comes to revenue, B2C startups performed 4.6x better than B2B;

  • 31% of B2C startups are present in 9 countries. The most common: Germany, Spain and the USA.


Teams

  • 26.3% of employees are female and 21.6% of founders / CEOs are women. Half are not Portuguese and have at least a Master's degree.

  • Most CEOs are between 35-54 years old, while most employees are in the 26-34 age group.

  • Most of the employees, CEOs and founders have a Master and a Bachelor degree.

  • A CEO holds an average of 45.8% of the company.

  • 89% are working full time, with 47.2% working on remote work, and 52.7% working at the office.


Our startup ecosystem is improving. Like the streets of Lisbon, which are recovering and modernizing, our ecosystem is also detecting opportunities for progress. Cranes on city streets are signs of change. And projects like these are also signs of the energy and the effort that is being made to progress our business ecosystem.


Based on these findings, several conclusions and measures to be implemented in the future were drawn. Some of these measures may involve creating partnerships with incubators and foreign governments; promoting the most profitable sectors (Hardware and IoT and electronic commerce), since they are not the most invested; supporting accelerators; connecting innovators to key opinion leaders; creating measures to attract more female entrepreneurs; promoting proximity to universities and research centers and exploring the opinion of startups regarding their policy suggestions.


In your opinion, what measures could improve Lisbon's entrepreneurship and innovation ecosystem?


Also read: 5 things to be thankful for, even with the pandemic


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