The Portuguese startup landscape is experiencing a remarkable shift in 2024, with Porto emerging as an unexpected challenger to Lisbon’s long-standing dominance as the country’s startup capital.
While Lisbon has traditionally been the go-to destination for tech entrepreneurs and innovative startups, Porto’s northern charm is increasingly catching the attention of founders and investors alike.
As costs in Lisbon continue to rise and the market becomes increasingly saturated, Porto offers a compelling mix of affordability, quality of life, and business infrastructure that’s hard to ignore.
Here are four key reasons why entrepreneurs are looking north when launching their ventures in Portugal.
The most compelling reason for startups choosing Porto over Lisbon comes down to simple economics.
In 2024, the cost differential between these two cities has become impossible to ignore, particularly for early-stage startups where every euro counts.
Commercial real estate in Porto offers substantial savings, with office space costing approximately 38.6% less than comparable locations in Lisbon. For startups, this translates into either significant cost savings or the ability to secure larger, more prestigious office spaces for the same budget.
Beyond office space, the overall operational costs paint an equally attractive picture. Employee salaries can stretch further in Porto, where the cost of living is notably lower. Housing costs are roughly half those in Lisbon, meaning startups can offer competitive salaries that provide a higher standard of living for their team members.
The math becomes even more favorable when considering the complete financial picture:
When it comes to attracting and retaining top talent, Porto’s quality of life makes a compelling case.
The city’s unique blend of historical charm and modern amenities creates an environment where skilled professionals can truly thrive, not just survive.
Porto’s more intimate scale plays a significant role in its appeal. With around 240,000 residents in the city proper (compared to Lisbon’s 500,000), employees enjoy shorter commute times and a more manageable urban environment.
The city’s compact nature means that most amenities, from trendy restaurants to cultural venues, are within easy reach, whether by foot or via the efficient metro system.
International connectivity hasn’t been sacrificed either. The Francisco Sá Carneiro Airport offers regular flights to major European tech hubs, making business travel and maintaining international connections straightforward for team members. While slightly smaller than Lisbon’s airport, it’s modern, efficient, and well-connected to the city center.
The city’s transformation into a tech hub isn’t just about physical spaces – it’s about creating an integrated environment where startups can flourish.
At the heart of this evolution is Porto’s robust educational foundation. The University of Porto, particularly its Faculty of Engineering (FEUP), consistently produces high-caliber tech talent. Unlike Lisbon, where graduates often face intense competition from established companies, Porto offers emerging startups a better chance to attract fresh talent. The university’s active collaboration with the tech sector has created a natural pipeline of skilled developers, engineers, and tech entrepreneurs.
The city’s physical infrastructure has kept pace with its ambitions. Notable tech centers like UPTEC (Science and Technology Park of University of Porto) provide startups with both the physical infrastructure and the support services needed to scale.
What sets Porto’s tech infrastructure apart is its less saturated nature. While Lisbon’s startup scene can feel overwhelming and highly competitive, Porto offers:
Unlike Lisbon’s highly internationalized environment, Porto maintains a more balanced, authentic approach to business development.
The business community here operates with a distinct emphasis on relationship-building and mutual support. While Lisbon’s startup scene can feel like a competitive race for investor attention, Porto fosters organic connections and collaboration.
This authenticity shows in several ways:
Looking ahead, Porto’s trajectory suggests continued growth while maintaining its unique character.
As more international startups discover the benefits of this northern Portuguese city, we can expect to see increased investment in infrastructure and support services, further strengthening its position as a viable alternative to Lisbon.
For founders and entrepreneurs planning their next venture in Portugal, Porto’s value proposition is clear: it’s not just a more affordable choice – it’s potentially a smarter one for long-term success.