American investment in Portuguese companies has reached its highest level in at least a decade, marking a decisive moment for the country’s innovation and growth ambitions. Between January and August 2025, Portuguese companies secured 647 million US dollars (about €557.5 million) in venture capital, already surpassing the total raised in the whole of last year. What stands out most is the dominance of US funds, responsible for 78.5% of all capital invested — the largest share recorded in ten years.
This surge is largely driven by major deals in the technology sector, which continue to capture global attention. In particular, large-scale rounds in advanced stages of growth have placed Portugal firmly on the map for international investors. American funds are increasingly drawn to projects with global scalability and high potential for rapid market penetration — qualities that Portuguese talent and technology have been consistently demonstrating.
The appeal goes beyond funding. US investors bring not only financial capacity but also a gateway to one of the most competitive and dynamic markets in the world. For Portuguese startups, partnering with American capital often means access to strategic contacts, partnerships, and opportunities that can accelerate international expansion. This is especially important in sectors such as artificial intelligence, life sciences, and defense technology, where Portugal has been producing solutions with international relevance.
While the presence of US funds is highly concentrated in a few large transactions, their influence is transformative. Even with participation in a relatively small number of deals, the scale of their investment reshapes the overall picture of capital flows into Portugal. Recent trends show that when significant rounds take place, the share of US capital spikes dramatically, highlighting the strategic role of these investors in the country’s most ambitious ventures.
In the wider Southern European context, Portugal is outperforming many of its peers. Boosted by landmark investments, the country has overtaken Italy in attracting venture capital and now ranks just behind Spain in the region. This contrasts with the broader regional trend, where American participation has generally declined in recent years.
Part of Portugal’s appeal lies in its increasingly recognized status as a European tech hub. Over the past decade, Lisbon and other cities have seen rapid growth in startup activity, supported by favorable conditions such as a skilled workforce, competitive costs, and a strong entrepreneurial culture. Internationally visible success stories have reinforced the perception that Portugal is capable of producing companies with unicorn potential — and doing so in sectors that attract serious global capital.
With 161 companies currently backed by venture capital, Portugal still has room to grow compared to regional leaders. Yet the trajectory is clear: the combination of local talent and international investment is creating a new chapter for the Portuguese startup ecosystem. American funds, with their financial strength and appetite for scalable innovation, are set to remain a crucial part of this story, offering not just capital but the possibility of transforming promising ideas into global players.

 
NEWS, Economy