The EU crowned Lisbon "the most entrepreneurial region in Europe for 2015," and investors from Germany, the United Kingdom, and elsewhere are flocking to the city to capitalize on low rents and affordable IT talent.
Portugal's capital Lisbon has placed hope for economic recovery on its nascent tech scene - and the efforts appear to be paying off.
Cheap labor and sunny weather are attracting tech investors from around the world to the Portuguese capital - transforming the city into a European startup hub. But can Lisbon dethrone Berlin as the next IT boomtown?
Room to grow
Because up to 400,000 people have left Lisbon over the
last 20 years, there is a lot of room to grow a new tech
business right in the city center.
Although the presence of shops and restaurants on the
ground floor of many buildings make Baixa, at the
very center of Lisbon, seem busy - it's all dark at night.
Unemployment as an advantage
New graduates from Portugal's technical universities have been
prevented from finding jobs at large employers, like the national
telecom energy utility as a result of the financial crisis. Therefore,
is has been a great opportunity for investors of small new innovative
companies to make connections with them.
It sounds a lot like Berlin's tech scene a decade ago
- only with better weather. And experts say that if the
boom continues, this will likely result will be an explosion
in real estate prices - just as has happened in Berlin.
Apparently investors from around the world are trying
to determine whether Lisbon's empty office buildings
and warehouses can provide a sound setting for their own
tech startup ideas.