Recent Context
Supressed markets create opportunities to acquire assets at discounted prices, which creates openings in the venture capital space. This is coupled with the fact that Portugal is still far behind in terms of venture capital fund investments as a percentage of GDP. Even though we have seen significant foreign investment into Portugal (particularly since the commencement of the Golden Visa Programme), we still feel there is sufficient demand to fuel growth in this sector. Here's why fund management is growing rapidly:
Why Portugal?
Portugal remains interesting in the start-up space due to a combination of factors including taxation advantages, both at a fund level (and for individuals who base themselves here), as well as relatively cheap labour, in relation to other European options.
One should also bear in mind that one of the potential routes for Portuguese citizenship is through a capital transfer of at least €350,000 to investment funds, that have been approved for Golden Visa purposes. This route is likely to prove more popular than property purchases over the next few years. This creates opportunities in the fund space in that there is increased demand for these vehicles, making the raising of capital easier, and cheaper, than obtaining outside financing.
Rules in relation to the Golden Visa are changing at the start of 2022 and now is definitely, the time to take action.
Current Status
Stag Fund Management is happy to announce that, at this point of writing, we have six funds under management with a number of others at the approval stage.
If you or your clients are interested in the opportunities that Stag Fund Management can provide for investing in Portugal, please do reach out.