Backing the Revolutionaries: The Role of Startups and Business Angels in Shaping the Future
In the words of Rui Falcão, COREangels Co-Founder and COREangels Lisbon Angel Fund Leader, startups are much more than just small businesses. They are revolutionary agents of change, driving innovation and creating significant societal impact. These entrepreneurial vehicles have the power to disrupt entire industries, generate wealth, and foster local development. More importantly, they are instrumental in attracting and retaining talent, ensuring regions remain competitive in the global market.
Startups embody the spirit of innovation, constantly pushing the boundaries of what’s possible. As Rui Falcão emphasizes, the very startup that might seem "small and harmless" today could transform into a unicorn tomorrow—a company valued at over $1 billion. This transformation is not just theoretical; it’s a reality we’ve seen with companies like Uber, Airbnb, and Spotify. These examples show us how startups, by challenging the status quo, can redefine industries and improve the quality of life for millions of people.
"Recent research shows that 40% of the most valuable unicorns in the world have founders and co-founders that are emigrants, who left their countries of origin to create their startups in more favorable environments for free initiative" - Rui Falcão, COREangels Co-Founder and COREangels Lisbon Angel Fund Leader
Startups are, at their core, vehicles of bold ideas. Founders dream big and take risks, sometimes in the face of monumental challenges like wars, pandemics, or economic downturns. As Rui Falcão points out, the ability of startups to be resilient, adaptable, and quick to innovate is unmatched. They provide solutions that are often more efficient, affordable, and practical than those offered by established players.
But startups don’t achieve success in isolation. They require an ecosystem of support, and this is where business angels, like those within the COREangels network, play a vital role. Business angels do more than provide capital—they are the first to believe in a founder’s vision. As Rui Falcão highlights, these investors are not just driven by financial returns. In fact, profitability ranks third on their list of reasons to invest. Their primary motivation is to contribute to innovation, help solve global challenges, and support local entrepreneurs with their experience, mentorship, and networks.
"Countries like the United Kingdom (considered a model in good practices regarding fiscal policies for business angels) consider business angels to be investment partners, granting them relevant fiscal benefits. This is no act of favor or privilege, it's a matter of justice and public-private co-responsability for those who invest their money in young talents and in high risk startups, which bring large benefits to society" - Rui Falcão, COREangels Co-Founder and COREangels Lisbon Angel Fund Leader
However, investing in startups is not without its challenges. It requires patience, as it is a medium- to long-term commitment with a high risk of failure. Startups are not liquid assets that can be sold easily, and most of the capital invested is often lost in the process of learning and evolving. This is why, as Rui Falcão argues, fiscal policies that support angel investors are essential. These policies would not only encourage more investment but would also ensure that startups can thrive without being forced to seek funding abroad in countries with more favorable conditions.
Ultimately, Rui Falcão believes in the power of entrepreneurship driven by purpose. Entrepreneurs who strive to solve meaningful problems, who rise above failure, and who work tirelessly for something bigger than themselves are the ones shaping the future. They deserve our support, and so do the business angels who back them. If we want to retain our brightest minds and be at the forefront of innovation, it’s time to create an environment where both entrepreneurs and their investors can thrive. This means changing our fiscal policies to better support early-stage investments, ensuring that Portugal can compete on the global stage.
Backing startups is not just a financial decision—it’s a commitment to the future. As Rui Falcão, the COREangels Lisbon Angel Fund Leader, so eloquently reminds us, by supporting the entrepreneurs of today, we are shaping the world of tomorrow. Let’s ensure that the Davids of today have the support they need to challenge the Goliaths of tomorrow.
About COREangels Lisbon
COREangels Lisbon is a group of serial entrepreneurs and experienced angels, investing in seed and pre-seed startups connected to Portugal. Their business angels have a hands-on approach in mentoring their startups towards scalability and profitability, with a professional leadership team and audited accounts.
Source: ECO
