PORTUGAL Trends and Developments Contributed by: Diogo Pereira Duarte, Ricardo Henriques, Isabel Pinheiro Torres and João Diogo Barbosa, Abreu Advogados
ments in anti-money laundering (AML) and know your customer (KYC) compliance measures. The growing focus on data privacy and security will also mean that EMIs must continuously evolve their technologies to meet regulatory demands
ment structures and disrupt the venture capital market. A key example of this is the launch of the first investment fund focused on crypto-assets and Web3 companies in Portugal, the “Unbound Fund” . This fund exemplifies the intersection of traditional finance and emerging technologies, opening new avenues for investment in the rap - idly evolving sectors of cryptocurrency, block - chain, and Web3. A number of new funds are trying to capitalise on technology-driven strategies, allowing them to target high-growth, disruptive companies that may not fit the traditional mould of venture capital targets. Through these innovative mod - els, Portugal positions itself as a key player in the growing digital asset and DeFi (Decentralised Finance) markets. The Web3-focused funds are particularly noteworthy as they provide a much- needed funding lifeline to startups building the next generation of the internet—decentralised, blockchain-based platforms and applications. This marks a shift away from traditional ven - ture capital models toward more agile, tech- savvy, and specialised investment approaches. The disruption of venture capital in Portugal is rooted in the ability of entrepreneurs and fund managers to introduce more flexible investment strategies. They often use AI-driven platforms, automated investment tools, and asset tokeni- sation to appeal to a new breed of investors who are comfortable with riskier, technology-driven assets. One of the most notable trends in Portugal’s evolving venture capital ecosystem is the shift toward leaner, more technology-oriented fund structures. These funds tend to utilise data-driv - en approaches, machine learning models, and fintech solutions to identify investment oppor - tunities better and optimise returns. Using AI
and customer expectations. Venture capital disruption
The approval of the new Asset Management Regime in 2023 marked a significant turning point for the Portuguese investment landscape, creating new opportunities for fintech entrepre - neurs and investors alike. The reform, designed to modernise Portugal’s asset management framework, has been a key enabler for the rapid growth of Undertakings for Collective Investment in Transferable Securities (UCITS) and Alterna - tive Investment Funds (AIFs) and is expected to continue fostering innovation within the sector through 2025. The Portuguese venture capital ecosystem has experienced an infusion of activ - ity, with new fund structures, investment strat - egies, and technology-driven models emerging to reshape the traditional venture capital scene. In the wake of the new regulatory regime, the number of collective investment undertakings (such as UCITS and AIFs) in Portugal has grown steadily, with the number of funds and assets under management seeing consistent increases. These structures have attracted both local and international investors, as they offer a robust regulatory environment, a clear legal framework, and increased flexibility for fund managers. The rise of these funds has piqued the interest of both traditional and venture capital investors seeking to diversify their portfolios while ben - efiting from favourable regulatory conditions in Portugal. Fintech entrepreneurs in Portugal are leveraging the new regime to introduce innovative invest -
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