It was up to Rui Soares Ferreira to celebrate as president of Portugal Ventures or risk the year of the capital management company to present some numbers in the form of a balance sheet: since 2012, the entity that works as the state arm for capital has already totaled more investments of 177.2 million euros invested in a total of 184 beginners. Public money totaled 69.3% of the total participation.

“The objective is to diversify the sources of investment (which are applied by Portugal Ventures in the beginners). In recent years, we have evolved from 100% to 69.3% of investments with public money. The ideal would be to reduce the share of investments with public money to 50% and leave the remaining 50% for private financing. It is important that investors can also play a role in these investments that we are making, explaining”, Rui Soares Ferreira, asked by the Expressas part of the commemorations of the 10th anniversary of Portugal Ventures, which started this Thursday with a cycle of debates and conferences.

Aptoide, DefineAI, Farfetch, Fever, Jscrambler, or Outsystems are among the most famous names that have had or have had Portugal Ventures as an investor. Mercadão, which was acquired by Glovo, was the most recent deal to secure the media spotlight. These are just like the best-known brands or those with a greater degree of success, but there are others that don’t make history – and they still succumb in the first years of “life”, given the high level of demand.

Rui Soares Ferreira indicates a number that is considered as the direct return on this investment, but points to a value that can be taken as the appreciation of the capital that has been applied in different beginners: Portugal Ventures currently leads 16 investment funds that aggregate holdings in different beginnerswith a total valuation of 256 million euros.

“We have to achieve a multiplication effect that has allowed the return as a new investment. And that’s why we say that our main source of capital is the return on investment”, adds Rui Soares Ferreira.

In the beginners,the wait may be long, but success is far from guaranteed or uniform. Total of 184 beginners financed, Portugal Ventures currently holds a stake in 140. The Digital & Technology area raised 74.8 million euros; while Indústria & Tecnologia deserved total investments of 35 million euros. Health Technologies, with 38.2 million euros and Tourism with 29.2 million, close the investment areas covered by Portugal Ventures in the last 10 years.

Rui Soares Ferreira distinguishes three groups of beginners as for the success chosen: only 10% to 20% of companies are largely compensated or with a return that can be chosen several times higher than the companies applied. Between 30% and 50% of startups pay only the initial investment or generate a marginal return. But there are also 30% to 50% of beginners that do not pay the investment and that are entered in the accounting sheets as “losses”.

This statistical description, which may vary between three companies that receive venture capital investments, Rui Soares Ferreira adds an estimate of the groups: “the success of companies depends on 80% of factors related to the profile of managers, with attitude and resilience , or the ability to overcome difficulties, or interact in equipping the president of Portugal Ventures.

Portugal Ventures’ investments are intended to guarantee a share of the capital of the beginners for a minimum of three years and a maximum of ten. During this period, Portugal usually sees transformations in the companies in which it invests. In most cases, not even leadership escapes change.

“Unfortunately, there are often disagreements (between partners and beginners). Projects are developed in developed environments, but can later be developed to develop expansion projects. And not even two profiles can reach an understanding”, describes Rui Soares Ferreira, also remembering that disputes around the value without participation attributed to founders and managers also tend to generate potential conflicts.

During the years of pandemic Ventures Invert a Dois Novos Atores Portugal the Entrepreneurship Sector with a Business Application 30 million euros. Rui Soares Ferreira recalls that the pandemic and confinements block ongoing projects in the tourism sector, but they even boosted businesses linked to the digital area and health science. “Not only did we sustain our (investment) portfolio, but we also valued it during the pandemic”, he adds.

The manager guarantees that Portugal Ventures is able to respond to the challenges that will be launched by Banco Português de Fomento, which holds 80% of the capital of the venture capital company, and for the objectives that will also be specified by the new Government, after taking office.

In a shorter term, attention will turn to the initiative to attract new businesses that will be launched in Madeira in partnership with the National Innovation Agency during the month of April. In May, an initiative to support projects in the area of ​​Tourism must follow. “It is a sector that is very needy; we want to promote the rejuvenation of the sector”, promises the president of Portugal Ventures. With luck, this spring will bring something more than flowers to the entrepreneurship sector again.