Portuguese-German business accelerator xelerate.tech plans to invest around €40 million over the next five years in Porto, hiring software development teams to work with foreign tech companies it helps establish in the region, according to CTO Pedro Rocha.
Recent example: German company Advanced Applications is set to create 25–35 software engineering jobs in Porto within six months.
Business model: Since 2021, xelerate.tech has helped foreign firms set up "tech hubs" in Porto through two approaches:
- External management model – xelerate recruits and manages staff who become direct employees of the client company (e.g., Danish firm ISS World Services, which opened "ISS Tech Portugal" in September 2022).
- Exclusive partnership model – xelerate's own teams work exclusively for a foreign partner (e.g., German automotive software firm AVL Software and Functions, which has hired ~20 people in nine months).
Track record:
- First major client (2021): a German logistics company, ~60 hires
- Followed by ISS World Services (Denmark)
- Then AVL Software and Functions (Germany)
- Now Advanced Applications (Germany)
Growth targets: Rocha aims to reach 100 employees by 2024, with an annual cost of roughly €7–8 million, totaling €35–40 million over five years. He frames xelerate.tech as one of the few companies currently hiring against the broader economic downturn.
Why Porto: Rocha points to the city's recognized universities, its status as an international tech hub, and strong local tech talent as key draws for foreign companies choosing to set up there.
Read the full article on ECO - Economia Online