This document summarizes the Portuguese startup scene report for 2022 from Armilar Venture Partners. Some key findings include: - Investment in Portuguese startups declined in 2022 with 118 rounds totaling €839M, down from 159 rounds and €1.4B in 2021. - Later stage rounds declined the most, dropping 60% from 2021 levels. However, the top 10 rounds accounted for over 70% of total funding. - Pre-seed and seed stage financing continued growing in 2022 despite the contraction, while Series A median round sizes saw a slight reduction. - Portugal Ventures was the most active investor overall, while Demium Capital led in pre-seed rounds among international investors. -

1. Lisbon March 2023
PORTUGUESE STARTUP SCENE REPORT
2022
Lisbon, March 2023

2. Lisbon March 2023
About Armilar Venture Partners
1
23
years of investment
experience
70+
companies backed
since 2000
20
exits, 3 IPOs
2
unicorns
4
dragons1
European
investment scope, focusing
on Digital companies with
tech at the core
1. A “dragon” is an investment that returns the entire fund

3. Lisbon March 2023 2
This report accounts for startups “with a Portuguese origin”
which includes startups with HQ outside Portugal
1. Includes startups “founded” in Portugal or by Portuguese founders. If the HQ is outside of Portugal, the startup needs to have a relevant number of employees in Portugal AND, Portuguese founders, or some International founders based in Portugal
Note: Analysis based on headquarters stated in LinkedIn or Crunchbase companies’ pages
Source: Armilar database
59%
81%
41%
19%
118 rounds
Startups with HQ elsewhere1
Startups with HQ in Portugal
Number of rounds
839 EUR M
Amount raised
(% of 2022 total) (% of 2022 total)
2022 Portuguese startup scene
5% Coimbra
3% Aveiro
9% Other
Many Portuguese startups / scaleups move their
HQ elsewhere after raising a relevant funding
round with international investors, others set-up
abroad from the start
Of which:
60% Lisbon
15% Porto
8% Braga

4. Lisbon March 2023
When a similar criteria is applied to other European ecosystems, we see that
Portugal is punching above its weight in nurturing high potential startups
3
Notes: Country data based on HQ and founding location according to Dealroom; includes countries with >= 300 million invested in the last 3 years and with more than 2 million in population; does not include Russia nor Ukraine;
Source: Dealroom
Number of unicorns per average amount invested in the last 3 years
(Unicorn per USD Billion invested)
0
2
4
6
8
10
2.4
2.0
3.0
3.1
3.2
3.3
3.5 3.5
3.7
4.1
4.3
4.3
4.6
5.0
5.9
6.7
7.1
7.2
3.2
4.2
2.9
1.9
3.2

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In 2022, more than €800M was invested in Portuguese startups
2022 had a lower investment activity overall when compared to 2021 groundbreaking year
Estimated number of deals (# of rounds) Estimated investment amount (EUR Million)
Source: Armilar database
132
159
118
2020 2022
2021
-26%
354
839
2022
1 417
2021
2020
-41%
Coming from a record year in
2021, 2022 was marked by an
international market contraction,
due to the rise of interest rates
and consequent reduction of
tech companies' valuation in
the public markets

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-60%
5
More than half was invested in a few later-stage rounds
Though Series B+ rounds decreased by 60% when compared to 2021
Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million)
Source: Armilar database
73 83
24
42
55
67
13
12
21
159
9
118
4
132
2022
6
2021
2020
-26%
11 97 109
96
237
219
488
2022
4
2021
13
80
354
839
43
1 212
1 417
2020
-41%
Series A Series B and beyond
Seed
Pre-Seed
Growth
’22 vs. ‘21
-33%
+22%
+75%
-71%
Growth
’22 vs. ‘21
+13%
+147%
-66%
Series B and beyond
were the most affected
by the international
environment in 2022
Most of the contraction in Pre-Seed
explained by a lower number of
rounds announced by Public entities
and BAs vs. previous years

7. Lisbon March 2023
In fact, the 10 largest funding rounds in 2022
represented +70% of the total amount raised
% of the total amount raised
32%
18%
8%
3%
3%
2%
2%
2%
1%
1%
Amount raised in 2022
$300M
€150M
$76M1
€25M
$25M
€20M
$19M
$15M
$12M
$12M
Valuation
$3B
N/a
N/a
N/a
N/a
N/a
N/a
N/a
N/a
N/a
Round
C
Growth
A
A
A
C
B
B
B
A
Startup
1 Includes equity and debt
Source: Pitchbook; Crunchbase; Dealroom; Armilar database
Round Investors
SoftBank Vision Fund 2, Accel, Sequoia, Index Ventures, Two Sigma
Ventures, General Catalyst, 9Yards, Adams Street, Base Growth, Indico
Capital Partners
6
72%
Antin Infrastructure Partners
Hiro Capital, Accel, Makers Fund
Verdane
Lightspeed Venture Partners, Build Collective, EX Capital, H&M Goup,
DCVC, SOSV’s HAX, Spider Capital, Momenta Ventures, Bombyx Capital
Partners, Faber Ventures, Fashion for Good, Shilling Capital Partner
Ventura Capital, Iberis Capital
Semapa Next
Bright Pixel Capital, Armilar Venture Partners, Faber Ventures, Join Capital,
Caixa Capital, EQT Ventures, Iberis Capital
Digital Turbine, Faurecia, Portugal Ventures, 200M
Draper Associates, Holt Xchange, Holdun Opportunity Fund, Brendan Holt
Dunn, Holdun Family Office, SDC Management, Expert Dojo, Uniera, Level
One Robotics

8. Lisbon March 2023
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This market contraction was mostly reflected in the 2nd half of the year
This is mostly driven by the lag between starting to raise and announcing a round
Estimated number of deals by stage (# of rounds) Estimated investment amount by stage (EUR Million)
Source: Armilar database
28
45
55
28
13 11
21
21
25
30
30 37
5
8
5
7
6
15
5
69
76
56
H2 2022
H1 2022
3
4
66
3
52
H2 2020 H2 2021
2
90
H1 2020 H1 2021
2
6 5 54 56 54
52
58
124 114
60
159
445
766
442
46
2
122
2
624
532
885
H2 2021
H1 2021
42
7
H2 2020
H1 2020
16
H2 2022
27
38
232
28
6
215
H1 2022
-66%
Series B and beyond
Series A
Seed
Pre-Seed
Growth
H2 vs. H1
-90%
-8%
-5%
-13%

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As a result, 2022 was a challenging year to raise follow-up rounds,
particularly in Series B+ stage
Pre-Seed to Seed conversion Seed to Series A conversion Series A to Series B conversion
Share of startups that raised the next round within a given period (cumulative)
Source: Pitchbook; Armilar database
Time since previous round
%
0
5
10
15
20
18 months 24 months
12 months
6 months
2020 cohort 2021 cohort
0
5
10
15
20
24 months
18 months
12 months
6 months
% %
While it became harder to raise during the 2nd
half of 2022, several companies raised internal
rounds (most not announced) and reduced cash
burn, delaying their next relevant round
0
5
10
15
20
24 months
18 months
12 months
6 months

10. Lisbon March 2023
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Despite the market contraction, Pre-Seed and Seed continued its
upward trend, while Series A median round size had a slight reduction
Pre-Seed Seed Series A
100 114 150
2021
2020 2022
+32%
Median round size (EUR thousand) Median round size (EUR thousand) Median round size (EUR thousand)
658
1 500
2021
2020
1 275
2022
+18%
8 000
4 250
2022
7 277
2021
2020
-9%
Note: Analysis only include rounds with known amount;
Source: Armilar database

11. Lisbon March 2023
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Both international and Portugal-based Investors were less active in 2022
Local investors reduction is mostly explained by a lower activity from Public entities and BAs
International Investors participated in >50% of the rounds… … while VCs were the most active local Investors
Source: Armilar database
52%
81%
Portugal-based
Investors
International
Investors
Delta vs 2021
(# of rounds)
-14%
-21%
18%
8%
20%
26%
40%
Other
Public
entities
Business
Angels
VC Investors
CVC or
Corporates
Delta vs 2021
(# of rounds)
+7%
-45%
-27%
-23%
+40%
Portugal-based
investors
Participation per type of Investor
(% of total rounds in 2022)
Participation per type of Investor
(% of total rounds in 2022)

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Pre-Seed was the most impacted stage by the lower activity
from local Public entities
Pre-Seed Seed Series A
49%
0%
5%
2%
17%
25%
42%
International
Investors
4%
12%
Other
Public
entities
Business
Angel
17%
CVC/
Corporate
17%
Venture
Capital
25%
Participation in Portuguese startups’ investment rounds (% of total rounds)
Source: Armilar database
2022
2021
18%
4%
Venture
Capital
48% 48%
24%
49%
Public
entities
15%
Other
35%
CVC/
Corporate
International
Investors
Business
Angel
56%
18%
16%
27%
8%
42%
17%
24%
19%
Business
Angel
42%
83%
0%
67%
Other
33%
Public
entities
International
Investors
38%
CVC/
Corporate
33%
Venture
Capital
In 2022, Private Equity firms -
leveraging SIFIDE funds -
have increased participation,
particularly in the Series A
Several pre-seed rounds
realized during 2022 were
not yet announced

13. Lisbon March 2023
Portugal Ventures was the most active Investor,
followed by several local VC Investors
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Most active Investors in Portuguese startups in 2022 (# of rounds)
27
18
9
8 8
7 7
6
5 5 5
4 4
3 3 3 3 3
Mustard
Seed
Maze
Semapa
Next
Hcapital
Bright
Pixel
Lince
Capital
Techstars EDP
Ventures
Wisenext
Caixa
Capital
Armilar
Iberis
Capital
Newzone
Demium
Indico
Capital
Shilling
Portugal
Ventures
Olisipo
Way
Faber
Ventures
Other (e.g. PE)
CVC/ Corporate
International Investors VCs Public Entities
Business Angels
-22 +3 -1 +3 +6 0 -6 +1 +3 0 +2 -2 +1 -1 0 -3 -3 +2
Delta
vs. 2021
(# of rounds)
Note: Includes Investors with at least 3 investments;
Source: Armilar database

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Splitting by round stage, Portugal Ventures covered the full spectrum of early-stage
rounds in 2022, only surpassed by Demium Capital in Pre-Seed rounds
Pre-Seed (# of rounds) Seed (# of rounds) Series A (# of rounds)
Note: Includes Investors with at least 3 investments;
Source: Armilar database
6
4
3
Newzone
Portugal
Ventures
Demium
Capital
17
12
7
6
3
3
3
3
3
3
3
3
Techstars
Faber
Hcapital
Wisenext
Indico Capital
Newzone
Iberis Capital
Armilar
Shilling
Lince Capital
Portugal Ventures
Mustard Seed Maze
CVC/ Corporate
International Investors Business Angels
VCs Public Entities Other (e.g. PE)
5
4
3
3
3
3
Iberis Capital
Caixa Capital
Armilar
Shilling
Portugal Ventures
Bright Pixel Capital
Most active Investors in Portuguese startups in 2022 per round stage (# of rounds)

15. Lisbon March 2023
Demium is also the most active international Investor,
followed by several other VC and late-stage Investors
Note: Includes follow-on investments
Source: Armilar database
14
Most active international Investors in the last 3 years
(number of Portuguese startups invested)
19
11
3 3 3
2 2 2 2 2 2 2 2 2 2 2

16. Lisbon March 2023
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Finally, Portuguese startup scene continues to be a B2B market,
with 70%+ of funding rounds and 80%+ of funding amount
Number of rounds (% of total number of rounds) Amount invested (% of total amount invested)
Source: Armilar database
15
70%
2021
27%
28%
73%
2020
72%
2022
30%
B2C
B2B
2022
2021
4%
82%
96%
18%
2020
7%
93%
In 2022, there were twice more
B2C Series A+ rounds vs. 2021

17. Lisbon March 2023
As insiders, we often feel that traditional information sources poorly reflect the reality of the Portuguese startup scene
• A relevant number of successful Portuguese startups move their headquarters (HQ) outside of Portugal, particularly after raising funds from international
investors and, consequently, they stop being considered as part of the Portuguese startup universe in traditional data sources, even when keeping most of
their operations in Portugal
• Information on funding rounds is spread across multiple information sources, and there is no widely adopted aggregating entity
As such, we felt the need to build our own database. We manually gather information based on publicly available, free sources, including (but not
limited to) news websites and investors' websites
We define the Portuguese startup scene in a broad sense, including startups with Portuguese roots but without their HQ in Portugal. In this report,
we include:
• Startups that have their HQ in Portugal (typically the standard definition in other databases), and
• Startups that do not have their HQ in Portugal but that have strong links to Portugal, namely by having Portuguese founders or international founders
located in Portugal, and a relevant local presence
Whenever a deal is made public, but round size or name (Seed, Series A, etc.) is unknown, we try to estimate them. We classify the round name based
on the perceived stage of the startup, using several variables, and assume a standard round size for each stage.
• To determine the stage, the main variables used are: prior rounds information, number of employees, round size, and product readiness
• To estimate the round size, we assume EUR 100 thousand for Pre-seed, EUR 400 thousand for Seed and EUR 3 Million for Series A rounds; we
acknowledge that this may evolve significantly with time, and we will review this criteria regularly
Given that exact transactional data is frequently not publicly available, data in this report should be considered as our educated guess of what
happened in the Portuguese startup scene. We also provide the data we used in this report in our Rows workspace
Report methodology
16

18. Lisbon March 2023 17
Contacts
Armilar Venture Partners, SGFCR, SA
Rua Tierno Galvan, Amoreiras, Torre 3, piso 17
1070-274 Lisbon, Portugal
Tel: +351 216 030 166
www.armilar.com
info@armilar.com
www.linkedin.com/company/armilar/
twitter.com/armilarvp