The mayor of Lisbon has turned it into a magnet for European startups
Carlos Moedas does not feel like a conventional politician. The current mayor of Lisbon and former European Commissioner for Innovation recently insisted in which his training as an engineer marked his management. The idea: less rhetoric and more structural solutions. And it certainly seems to carry out this proposal, because it is leading a transformation that seeks to position the Portuguese capital not only as a tourist destination, but as one of the most relevant technological nodes in Europe. unicorn factory. The nerve center of this transformation is the call Unicorn Factorya hub of innovation that was launched in 2022 and that has become the flagship project of its mandate. Since its creation, this initiative has multiplied its size by five, and today it already houses thematic divisions specialized in cutting-edge sectors such as AI, blockchainhealth or green technologies dedicated to the agricultural field. The success is tangible: 17 “unicorn” companies (valued at more than $1 billion) have moved their operations to the Portuguese capital. Attracting startups. Moedas explained in comments to Financial Times how the real challenge of Lisbon is not to see companies born, but to help them grow. The project attracted 300 companies in 2025, a figure that represents notable growth from 250 the previous year. Among them there are companies with founders from the US, Brazil, or Denmark. Favorable conditions. To attract these startups Moedas has used several levers. The first is to sell Lisbon for what it is: a safe capital with a great quality of life. The second is to highlight that the tax regime for qualified immigrants is advantageous, and there are also tax credits for R&D, which of course is a strong argument for companies that consume a lot of resources in those initial phases and can thus receive aid in this process. But. The road, Moedas openly acknowledges, is not without potholes. Portuguese bureaucracy remains complex – the same thing happens in Spain – and that can deter entrepreneurs. The mayor of Lisbon states in the interview that a good part of his time is spent talking on the phone with foreign founders and helping them overcome these bureaucratic barriers. “Politicians do not create jobs, the markets create them,” he repeats: their job is to facilitate, not hinder, or at least that is the message. Competence. Although the activity is notable, there are founders of companies who know that the market is raffling them off. María Ribeiro Soares, from Immersiv Studios, warned of the difficulty retaining talent compared to markets with higher wages such as the United Kingdom or Germany. The other venture capital. There is another peculiarity in this entrepreneurship market. Lisbon startup founders have realized that while traditional venture capital is cautious, the so-called family offices are very willing to bet on these projects. These investors, often experienced, high-net-worth former founders, provide funding but also advice. Lisbon is not alone. The rise of Lisbon as a technological node is also accompanied by other Portuguese innovation centers such as Braga and Porto, where, for example, the biotechnology sector flourishes. There is also a direct connection with universities oriented to this market, and in that northern region of Portugal alone there are already some 1,200 startups with a combined valuation of close to 9 billion euros, according to the FT. The other great challenge. Portugal’s efforts to attract external talent have led to the arrival of numerous digital nomads, but this has had a counterproductive effect: it is causing an exodus among young Portuguese. They cannot access a housing market adapted to the pockets of those nomads, who charge triple. Rental prices have skyrocketed, and that has created tension that the mayor must manage. Image | EU2017EE Estonian Presidency | Aayush Gupta In Xataka | Portugal’s radical proposal to stop touristification: an underwater cable that connects with the US