It seems like it was only yesterday (well, seven years ago!) that I was honing in on the rapid development of Portugal’s growing startup and investment scene. In 2021, I updated my article to find an explosion of new companies and investors. Today comes further proof that Portugal is stretching its wings as one of Europe’s freshest and hungriest tech ecosystems: Venture firm Shilling has launched a €50 million fund to support growth-stage startups in its own portfolio and also — crucially — to invest in startups everywhere else.
Shilling’s Opportunity Fund
The VC arm of Portuguese private equity firm Draycott SCR, Shilling is best known for being an early-stage investor in startups like Talka, Unbabel, Bizay, Uniplaces, and Best Tables (acquired by TripAdvisor in 2015). Shilling’s newest fund, labeled ‘Opportunity Fund,’ will give it extra firepower to support early-stage startups for longer, with investments of up to €5 million for Series A and beyond. According to the firm, over 90% of the fund target was raised at the first close, and the fund has already invested in Shilling portfolio company Coverflex.
The Gap in Funding
Despite having a vibrant startup ecosystem, Portugal has one of the lowest VC investment-to-GDP ratios in Europe — five times lower than the European average, according to Atomico. This has created a gap in funding for growth-stage startups. Shilling’s Opportunity Fund will be a welcome bridge in that gap.
"We want to be one of the players following our startups over their entire journey, hence this new fund," Ricardo Jacinto, managing partner at Shilling, told me. "Obviously, we want to keep an eye on new opportunities. That’s the thesis of this fund. […] We don’t want to limit ourselves to only portfolio companies."
"As the market recovers from post-pandemic stabilization, our new fund will support growth-stage companies as they scale," Hugo Gonçalves Pereira, a founding partner at Shilling, said in a statement.
Norberto Guimarães, co-founder and CEO at Talka, added, "Shilling is unavoidable in the Portuguese early-stage startup scene. They quickly supported Talka, plugging me into the community after my journey of 12 years in the Bay Area."
Backing Tech Founders Early
Backing tech founders early has been key to Shilling’s success. The firm has a strong track record of investing in startups at an early stage and supporting them as they grow.
"We believe that backing entrepreneurs early on is crucial for their growth," Jacinto said. "We provide not only financial support but also mentorship, guidance, and access to our network."
The Rise of Shilling
Shilling has been making waves in the European startup ecosystem for several years now. The firm has a strong team of experienced investors who have a deep understanding of the market.
"We are proud to be part of the Portuguese startup ecosystem," Jacinto said. "We believe that Portugal has tremendous potential for growth, and we want to contribute to its development."
Portugal’s Startup Ecosystem
Portugal’s startup ecosystem is growing rapidly, with many startups emerging in recent years. The country has a strong entrepreneurial spirit, and there are many initiatives supporting startups.
"Portugal is an excellent place to start a business," Guimarães said. "The government is supportive, the cost of living is low, and the quality of life is high."
Conclusion
Shilling’s Opportunity Fund is a significant development in Portugal’s startup ecosystem. The fund will provide much-needed support to growth-stage startups, helping them to scale and grow.
As Shilling continues to invest in startups across Europe, it is clear that the firm is committed to supporting entrepreneurs and contributing to the growth of the tech industry.
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