100 million-fund to help companies merge without private companies

The 100 million euro-fund provided by the EIF and the Fund for Internationalization Funds aims to mobilize 300 million euros (and no longer 500) to finance Portuguese SMEs.

The fund to stimulate the growth of more mature companies and promote mergers and internationalization will go ahead without private companies. The Portugal Growth Capital Initiative, a fund of funds, will start with 100 million euros and intends to mobilize around 300 million to finance Portuguese SMEs. This is a revised downturn in view of the effects of the pandemic on the economy.

This fund of funds will invest in SMEs and midcaps, that is, companies that have up to three thousand workers. And this is the big difference compared to Portugal Tech, the investment program of 100 million euros that invests in startups in the area of ​​technology.

Just as Portugal Tech does not provide support directly to Portuguese companies, the Portugal Growth Capital Initiative will also choose venture capital that has more know-how in different areas and access to private capital. The choice of risk capitals should be up to the EIF, the group of private teams that are accredited with the fund to receive financing. It will suffice to choose national funds. In the case of Portugal Tech, the specialist venture capitals chosen were Indico Capital Partners, Armilar Venture Partners and Vallis Capital Partners.

Portugal Venture Capital Initiative (PVCi), the first Portuguese fund of funds, with 111 million euros, invested in seven funds which, in turn, invested in 50 companies. Each year, around 20 private equity investments are made in the country.