[Portugal] There are four types of crops (bear with me on this) for companies; seeding (seed capital); harvesting (venture capital), selling (acquisition) and consuming (IPO).
In Portugal, each one has their own expression. We have VC’s, we have acquisitions and some IPO’s, but not that many seeders. So, it seems natural that the actual business angels in Portugal should be doing seed capital, but they’re more interested on being just the middle man between the ideia/startup and the venture capital noney. For that they’ll crop up to 10%. So, what history tells us ? Everyone’s killing the middle man and it will be shot at plain sight!
Wait no more, hope is here and we’re starting to see the rise of the newborns, the seeders! The guys that support your startup/idea/project, without the business spreadsheet or the fancy 20 page business plan full of charts. They’re the ones who leverage most of the startup risk, but also the ones who can profit from your business. The best seats of the train are always those upfront, that’s what seed capital hopes and prays for!
It comes as no surprise that seed capital is the guinea-pig money of startups, but some seeders are just that, pure money that could be used to build, burn or scale your business. The difference between them is that some are smarter than others. Some are the “smart money”.
Seed Capital, is one of those portuguese seeders, the smart type, they say: “Young enough to know the value of technology, old enough to know the value of money. Experienced enough to make a difference”. Experience is the key here, for them at least and the proof can be found on their team.
Their vision is also clear and ambitious: “To be recognized at European level as one of the top 5 seed/start-up investors before 2015.” and “To have at least one >10 million Euro sale/acquisition before 2015.” For both plans, there’s a 5 year marathon that starts right now and they’re open to anyone out there, portuguese, european or from the farther place on earth.
Call for Startups/Founders
You have less than one month to submit your startup idea/project for their smart money funding. No details about the money yet, but as far as I know it’s on the same basis that YCombinator or SeedCamp, so expect something like 5% to 10% for 20k to 25k euros in a 6 month period. In January, it’s the Kickstart 1H10, which is the like a micro MBA for entrepreneurs and where you’ll be asked to present your idea or project for seed funding. So, if you don’t have the business basis, they’ll teach and help you, that’s the point with kickstart, and after be invited for a demo.
Lisbon as Europe best place to have a startup
Regarding startups and places to have one, Mário Valente, Seed Capital head of investment operations, wrote a great article about Lisbon as a nice place to have a startup, by the sea. It’s like the European California. We too have the golden bridge, wine, sun and beach. We’re missing money (that’s where they come in) and ideas/projects for kickass startups. What are you waiting for? You don’t have no excuse now. Apply!
Disclaimer: I’ve worked with Mario Valente, SeedCapital entrepreneur in residence, at the Portuguese IT Institute for the Ministry of Justice.
Hi Vitor, this is really interesting but you seem to overlook something that is really important: Portuguese legislation is a major obstacle to any start-up. I am not talking about getting your brand and all the papers you need to officially have a company but everything that comes after that. I will give you a small example: We have been trying to setup our R&D HQ in Lisbon for the last year. One year of frustrations due to a chaotic local legislation from the city hall where everything seems to run on the basis of “I know someone that knows someone that knows someone” and on endless business lunches and dinners (payed from our budget) that end up in nothing.
Lisbon has a golden bridge that is a traffic chaos and you can’t even walk to the other side or ride a bike on it, wine that should not be taken into consideration when speaking about business unless you are on the wine business, sun and crowded beaches where tourists are mugged.
Portugal is missing money because instead of applying the European Funds in generating a modern corporate culture it invested those funds in training programs that were nothing but a fraud.
When our VCs ask us about our Portuguese operation I am ashamed of being Portuguese and really glad I still hold my UK passport. I’m also glad that we have our main HQs in Barcelona and not in Lisbon as we were considering.
I think that “The Next Web” should be objective about whatever content it publishes and should get its facts straight. Portugal is a nightmare to invest on and you know about it and all of those that have tried to invest in Portugal know about it.
Full Disclosure: I’m a great admirer of your work.
As portuguese living abroad and loving web concepts and innovation, I am very curious to see what this initiative can reach.
And I can only recommend anyone to build a company there for those reasons… damn, i miss that weather
Sorry, I will witdraw my previous comment after i read the very insightful first comment.
Portugal has very serious issues with haters and complainers that, instead of supporting good initiatives (even moral support would be ok), hide on their negative perspective of the world. It just seems easier to complain than actually doing something, ah?
YDreams (on the other side of the bridge) didn’t gave a chait or got stopped by traffic reasons, did they?
Ashamed of being portuguese? Come on!! I live outside of Portugal and feel a lot of stuff is wrong but ashamed? Maybe sorry or sad about some some things don’t work better…
I’ll never be fucking ashamed of being portuguese that’s for sure.
It’s up to us, living there or not, to change it instead of keeping the blablabla about negative stuff that just gets destructive. We need people with attitude and people that can say “Fuck off” every time someone blocks their way or rants against their believes.
Damiansen: Obviously is not your money that is being spent in trying to actually bring to Portugal a R&D Department. If it was you would probably see this under other perspective. Furthermore I am ashamed of having to explain to those that have trusted us with their money that the way things roll in Portugal are similar to any b-movie series involving the mafia, blue bags and other things that should only exist in movies. We are a very positive company and we are very proud of what we do. But we are giving up on Portugal that is for sure after giving it a try. At least we gave it a try and didn’t go abroad like apparently you did. It is very easy to speak from a comfortable position of course. Give it a try, have the courage to give it a try, put your money where you mouth is, and then we can talk.
So maybe I should follow your advice and tell you to “Fuck Off” but I won’t. Instead I will just give you the time to actually try to invest in Portugal and let me know about it.
Cool?
PS: We operate in 5 countries in Europe and 2010 will see us moving to the USA. I don’t think there is something wrong with us at all. At least we are not complaining. But out of respect of those who gave us their money so we can have a business that is prosper we are not throwing it away on lunches and dinners. We are putting that money on resources and development.
Damiansen,
YDreams is a accident waiting to happen. I’ll give it another year or so after they go bust.
Fernando, I’ve setup a company in the UK and lived there for 4 years. Portugal is not that different from any other country. Sure, we have bad things, but so do they. To paraphrase Henry Ford: “Obstacles are those frightful things you see when you take your eyes off your goal.” We hall face obstacles but it’s an entrepreneurs trait to suck it up and jump over them. I believe in Portugal and now that I returned I want to establish my business here and thrive.
Bruno, my sincere wishes that things work out for you and have a great 2010.
Fernando