Portugal retained ninth place in Europe by number of foreign direct investment projects: 186 projects in 2025, down 5% from 2024, compared with a 7% decline across Europe. The EY figures, covered by ECO on 13 October 2026, confirm Portugal's continued presence in investors' location decisions.

For a business in Portugal, the practical question is how to turn that interest into a transaction that funds growth, brings expertise and fits shareholders' objectives. In our view, the starting points are business preparation and the choice of a suitable partner.

What the figures measure

EY's European Investment Monitor tracks projects creating or expanding facilities and jobs. It generally excludes acquisitions without that effect and portfolio investments. The ranking therefore does not measure all private investment or the value of every transaction in Portugal.

This distinction matters when raising capital. A foreign group's new industrial facility, a fund's investment in an SME and a competitor's acquisition of a business are different transactions. Each involves different objectives, counterparties and decision processes. The country context can start a conversation; the project's merits must support the investment decision.

Which type of investment does your business need?

Before identifying investors, define the intended outcome and where the money will go. Four common situations are:

  • Growth capital. A capital increase can fund production capacity, product development or commercial expansion. The investor shares in the business's risk and future value.
  • A strategic partner. An industry group may contribute market access, technology, distribution or scale. Operational fit and decision rights deserve as much attention as price.
  • Succession or a business sale. Purchasing existing shares can provide liquidity for shareholders. It does not, by itself, put new money into the business. Where growth funding is also needed, the transaction must address that requirement separately.
  • An investment project in Portugal. An investor establishing or expanding operations needs to assess viability, location, resources, timing and funding structure.

Venture capital funds, private equity firms, family offices and industrial investors can have very different mandates. Sector, investment size, target stake, exit horizon and involvement in management help identify partners with a credible interest in the opportunity.

How to prepare a business for investors

Preparation should allow an outside party to understand the business, test its assumptions and identify risks. A polished presentation helps, but it needs a sound financial foundation. We recommend organising the work around five priorities:

  • A clear investment thesis. Explain the problem the business solves, its competitive advantage, the market it can serve and what fresh capital will enable. Each ambition should connect to a specific use of funds.
  • Financial information that stands up to scrutiny. Assemble historical accounts, management reporting, debt, working capital requirements and material commitments. Separate recurring performance from one-off effects and explain cash conversion.
  • A plan with scenarios. Connect sales, margins, capital expenditure, recruitment and liquidity. Testing delays, cost increases and slower growth helps establish how much capital is required and when further funding may be needed.
  • Management and governance. Clarify responsibilities, dependence on founders, delivery capacity and decisions requiring shareholder agreement. The investment must fit how the business will be managed.
  • A well-supported transaction proposal. Define the amount sought, the stake available, the use of proceeds and the valuation rationale. Preparing alternatives supports negotiation while preserving the essential objectives.

The business plan and financial model should underpin the investor presentation. A business valuation helps frame expectations before discussions about price and dilution begin.

Approach investors with discipline and confidentiality

A long contact list is no substitute for careful selection. Start with investors whose mandate, financial capacity and experience fit the transaction. Then prepare an initial presentation that explains the opportunity without unnecessarily disclosing sensitive information.

Detailed information should be released in stages, with appropriate confidentiality commitments. An organised data room provides a controlled way to share documents and track questions. This preparation can reduce uncertainty and improve process efficiency, although it cannot guarantee an investment.

Compare offers as a whole: price, funds actually available to the business, payment terms, governance rights, future obligations and exit conditions. A higher headline valuation may come with less favourable terms for existing shareholders.

Combine equity, debt and incentives around delivery

Different funding needs may call for different sources. Equity, debt and investment incentives can serve complementary purposes. The combination depends on risk, predictable cash generation, available security and the investment timetable.

If a plan relies on incentives that have not yet been approved, make that dependency explicit and consider how delivery would be funded if support were delayed or declined. Excessive debt can similarly restrict flexibility during expansion.

Capital raising advice should connect the investor's participation with the wider financial requirements. Our analysis of debt, equity and incentives for business growth explores this relationship further.

Five questions before approaching the market

  • How much capital is needed, and what specific outcomes will it fund?
  • Will the proceeds go to the business, exiting shareholders or both?
  • What ownership stake and decision rights are shareholders willing to negotiate?
  • What evidence supports the valuation, forecasts and ability to deliver?
  • When must the transaction close, and what is the alternative if it takes longer?

These answers provide the basis for a useful initial assessment. Businesses that are not yet ready can start with a diagnostic review and preparation plan before approaching investors.

How Fenix Capital can help

Fenix Capital supports businesses and shareholders with information preparation, financial modelling, valuation, transaction structuring and engagement with suitable investors. For acquisitions and disposals, this work connects with our M&A advisory service. We also support the assessment and structuring of foreign investment in Portugal.

Planning a capital raise, a new shareholder partnership or an investment in Portugal? Book an initial conversation with Fenix Capital. Share your sector, project stage, indicative funding requirement and transaction objective so that we can discuss the context and next steps, confidentially and without obligation.

Can a business raise capital without selling control?

A minority investment may be possible, depending on investor appetite and the business. The ownership percentage should be considered alongside voting rights, reserved matters, board composition and exit arrangements. These points should be clarified during negotiation.

How long does it take to find an investor?

There is no universal timetable. Information readiness, transaction size, investor availability, negotiation and due diligence all affect the process. Starting before liquidity pressure develops preserves options and gives shareholders more room to make considered decisions.