The aim of the Morning Talks series of interviews is to present the impact of Dealflow.eu partnerships on the EU innovation and investment ecosystem.
For this edition, we had the pleasure of speaking with Inês de Macedo Santos, a senior associate at Armilar VP, a distinguished European venture capital firm based in Lisbon with a legacy spanning 25 years.
In November 2024, Inês and Armilar partnered with Dealflow.eu as part of the jury panel for the 10th Innovation Radar Prize, held in Lisbon.
It is not just about identifying investment opportunities—it is about building long-term relationships with founders and supporting the scalability of European startups on a global stage.
Can you describe your role in your organisation and tell us a bit about your background?
I am part of the Investment Team at Armilar, where I focus on identifying and evaluating investment opportunities for our funds, as well as supporting portfolio companies in overcoming various challenges.
I hold a Master’s degree in Biomedical Engineering from FCT Nova and an MBA from Nova/Católica Universities, in collaboration with MIT Sloan.
Before joining Armilar, I spent eight years at The Boston Consulting Group, specialising in Strategic and Management Consulting.
Beyond work, I am a passionate athlete, competing in padel at a national level, and a passionate mother of five who loves spending quality time with my family. Being both Portuguese and French, I bring a diverse perspective to my work.
What is unique about the company and what is the ambition behind it?
Armilar is a leading European VC firm based in Lisbon with a 25-year journey and a robust track record along different economic cycles. Armilar’s hands-on approach from deal sourcing to deal exits is quite unique, with repeated global winners in its portfolio.
What key areas/markets are you currently looking into, and which funding stages do you aim for?
We invest in digital and technology-dense startups, not to use “Deep-Tech” as we tend not to invest in Bio and Hardware. We are focused on opportunities where data, digitisation and connectivity play a central role and companies offering a robust technological competitive advantage, delivering leading products with high scalability. We target investments in areas such as productivity SW, Infrastructure/ DevOps, HealthTech, Insurtech, EdTech, Cyber & Privacy, SpaceTech, Industrial Tech, Low-code SW, Image and Video SW, etc.
I am personally responsible for the HealthTech and Insurtech tracks at Armilar, as well as for the French region.
Our upcoming EUR 250M Fund IV is Iberian-centric but spilling over to other regions (mainly Europe, with opportunistic investments outside Europe), targeting companies in Series A+ stages.
What are the main challenges you face when looking to invest in EU startups or scaleups?
Based in a smaller country like Portugal, we face the challenge of accessing many high-quality EU deals beyond Iberia, as proximity still influences deal flow.
Once we are exposed to an EU opportunity, another key challenge is often the scalability of the business, particularly due to Europe’s market fragmentation. HealthTech is a prime example: scaling a HealthTech solution in Europe often feels like building a new company for each country, given the variations in regulation, certification processes, healthcare ecosystem players, language, and culture.
Additionally, navigating the diverse funding landscapes in Europe can be complex. Access to public grants and subsidies, such as those provided by EU initiatives, differs by country, and aligning these with private capital can be challenging. Cultural differences in how founders approach investors, as well as varied levels of entrepreneurial maturity across regions, can also impact our investment process. But quite frankly, that’s a key aspect of the fun side of working in this industry.
AI has significantly enhanced our ability to identify investment opportunities across Europe, providing deeper insights and helping us navigate the increasingly structured market. The evolution of tools and platforms, supported by the hard work of institutions like Dealflow.eu, has made the ecosystem far more accessible and efficient than it was 20, or even 10, years ago.
Finally, the competitive environment for standout startups and scaleups in Europe is increasing as more global players enter the market. Standing out as a VC requires a clear value-add beyond capital, such as strong operational support or sector expertise.
As an investor, what strengths and skills do you look for in companies when assessing a potential investment?
It depends on the stage of the investment. For earlier-stage opportunities, the primary focus is on the team. We evaluate the founders’ academic and professional backgrounds, their resilience, interpersonal dynamics, and ability to build strong relationships (empathy and leadership). We also assess the problem they aim to solve and the uniqueness or potential of their technology or innovation. At this stage, it is often more about the vision, the team’s ability to execute, and the market opportunity.
For later-stage investments (Series A and beyond), the evaluation becomes more data-driven due to the availability of tangible performance metrics. We focus on traction, revenue growth, customer feedback, and the overall health of the business, using typical software ratios (e.g., LTV/CAC, ARR growth, burn rate). While financial metrics and scalability take centre stage, we continue to place significant emphasis on the founding team. Even in later stages, the founders’ vision, adaptability, and ability to lead a growing organisation are critical to long-term success.
Across all stages, we look for alignment between the team, the problem, and the market opportunity, as well as evidence of a sustainable competitive advantage.
Can you think of important investment achievements for you, so far? Is there a success story that you can share with us?
Armilar has a 25-year journey with 70+ investments made in 9 countries, 13 exits and 2 IPOs. Armilar has done notable investments along the way:
- Outsystems – unicorn and dragon: invested in pre-Series A in 2007, Outsystems is a low-code application platform. We have partially exited in 2018, 2020 and 2022, bringing impressive results to our LPs
- SafetyPay – dragon: invested in pre-Series A in 2008, SafetyPay is a pre-eminent payments platform. We have exited in 2022 with a sale to PaySafe at a valuation close to USD 500 million
- Feedzai – unicorn and dragon: invested at inception in 2011, Feedzai is a leading fintech in the space of Risk-Ops, on their way to USD 200 million ARR
Since joining Armilar in September 2021, I have had the privilege of leading several impactful investments. One example is Cintoo, a French company operating in the Industry 4.0 space. We participated in their Series A round in 2022, and I am proud to share that they recently raised a €40M Series B led by Partech. Over the past two years, the company has demonstrated impressive and sustainable growth, solidifying its market position.
Another investment I led is PromptlyHealth, a Portuguese HealthTech company. We invested in late 2023, supporting their mission to build a real-world evidence data network across Europe using federated learning technology. Within the past year, the company has made significant strides, including entry into key markets such as the UK (collaborating with the NHS) and partnerships with major private healthcare groups across Brazil, Spain, France, and the Nordics.
Both companies exemplify the type of innovation and execution we strive to support at Armilar.
Do you find it easy to bring EU-funded startups or scaleups into your ecosystem?
Portugal’s growing spotlight as a hub for startups and scaleups has made it increasingly easier to bring EU-funded companies into our ecosystem.
Over the past years, Portugal has emerged as an attractive destination for startups and scaleups, thanks to its vibrant ecosystem, supportive initiatives, and a dynamic talent pool. Key efforts such as the Unicorn Factory in Lisbon and the annual Web Summit week have significantly contributed to this momentum. These initiatives not only showcase Portugal as a hub for innovation but also actively work to attract and retain EU-funded startups and scaleups by providing access to resources, networking opportunities, and global visibility.
Additionally, Portugal’s geographical location, combined with its growing reputation as a tech-friendly environment, has made it a natural entry point for companies looking to scale across Europe.
What efforts do you make to fill the gap between European companies and private investment (Private Equity, VC funds, infrastructure sectors, etc.)?
The primary effort we make to bridge the gap between European companies and private investment involves building and nurturing strong networks across different European regions. As the person responsible for the French market, I leverage my dual Portuguese-French background to foster connections with local VCs, angel investors, incubators, accelerators, universities, research centres, and other ecosystem stakeholders. This involves frequent travel to France, particularly Paris, to maintain these relationships and stay updated on market dynamics.
At Armilar, our investment team is strategically organised by both industry verticals and geographies. This allows us to work closely with specialised networks, ensuring we have targeted access to the best opportunities across Europe.
Additionally, we actively participate in European innovation hubs, conferences, and industry-specific events, providing mentorship and expertise where needed to support early-stage companies.
Beyond networking, we aim to fill the gap by offering a hands-on investment approach. This includes helping portfolio companies navigate the complexities of European markets, such as regulatory hurdles, diverse customer bases, and fragmented ecosystems. For example, we help scale their businesses across borders by facilitating partnerships, expanding their access to strategic investors, and guiding them on market-specific requirements.
Portugal, however, faces significant limitations in terms of available capital, which remains a clear barrier to attracting and developing startups and scale-ups. At Armilar, we recognise the responsibility to bring funds from outside Portugal to mitigate this challenge. Institutions like the EIF (European Investment Fund) have played a brilliant role in this regard, and we are very proud to have them as one of our LPs.
Lastly, we collaborate with public initiatives like the European Innovation Council (EIC) and other funding programmes to help founders connect with non-dilutive financing options. This ensures that startups can blend public and private funding, maximising their resources and accelerating their growth.
What motivated you to join forces with Dealflow.eu in search of an investment match?
Joining forces with Dealflow.eu was a natural step for us at Armilar because your mission to bridge innovative startups with investors aligns perfectly with our own commitment to supporting groundbreaking technologies and ambitious entrepreneurs in Europe. Dealflow.eu’s network and platform enable us to discover high-potential opportunities across Europe that we might not otherwise encounter, particularly in regions or industries less familiar to us.
By collaborating with Dealflow.eu, we are also contributing to a larger ecosystem effort to strengthen the European innovation landscape. It is not just about identifying investment opportunities—it is about building long-term relationships with founders and supporting the scalability of European startups on a global stage.
Dealflow.eu is all about supporting innovation and providing a unique matchmaking platform. Can you tell us how you have leveraged from it and its high-potential portfolio to increase visibility and scaling-up opportunities?
Dealflow.eu’s structured approach to investment matchmaking helps us streamline our deal-sourcing process, allowing us to focus on evaluating companies that match our investment thesis. This partnership enhances our capacity to uncover hidden gems in diverse geographies and sectors, ultimately expanding our reach and impact.
What are syndicate leads lacking in Europe?
Syndicate leads in Europe often face challenges that stem from structural and cultural differences across the continent. One key limitation I mentioned before is the fragmentation of markets, which complicates deal-making. Regulatory frameworks, tax incentives, and legal structures vary significantly between countries, creating hurdles for seamless syndication and alignment among investors.
Another area where syndicate leads may fall short is in their ability to act quickly and decisively, especially compared to their counterparts in the U.S. European investors sometimes exhibit a more conservative approach to risk, which can delay deal closures and hinder startups’ ability to secure timely funding.
Moreover, syndicate leads in Europe often lack the same degree of operational support and hands-on involvement that startups might receive in regions like Silicon Valley. While European VCs are becoming more founder-friendly, there is still room to strengthen mentorship, access to industry networks, and scalability expertise to support portfolio companies more effectively.
Lastly, fostering collaboration and co-investment between local and international investors remains an area of improvement. European syndicate leads need to build stronger relationships with global players to pool resources and expertise, ultimately driving more impactful investments and helping startups scale beyond their home markets.
Despite these gaps, there is reason for optimism. We have seen significant progress in fostering co-investments across diverse geographies, bringing together local and international investors to support startups more effectively. These collaborations are gradually bridging the gaps in operational expertise, market access, and scalability, creating a more unified and impactful investment landscape in Europe. This positive momentum is a testament to the growing maturity of the European VC ecosystem and its potential to compete on a global scale.
What do you see as the main advantages of companies that have been funded by the EU?
Companies funded by the EU benefit from several significant advantages that can help them thrive in competitive markets.
- Access to Non-Dilutive Funding: EU grants and programmes provide funding without requiring companies to give up equity. This enables founders to retain control over their businesses while still accessing substantial resources.
- Credibility and Validation: Securing EU funding often serves as a strong validation of a company’s technology, business model, or innovation potential. This stamp of approval from the EU can enhance credibility and make it easier to attract follow-on investment from private sources.
- Support for Research and Innovation: EU funding programmes are particularly strong in fostering R&D efforts. They enable companies to develop cutting-edge technologies, conduct clinical trials, or achieve breakthroughs that may otherwise have been out of reach due to high costs.
- Market Expansion Opportunities: Companies funded by the EU often gain exposure to a wider European network, facilitating entry into new markets and expanding their reach across borders. Programmes like the European Innovation Council (EIC) actively connect startups with investors and corporate partners throughout the EU.
Overall, EU funding provides a strong foundation for growth, innovation, and scalability, while reducing financial risks and fostering collaboration across borders.
Article published by EurA AG.
Read also our last Morning Talks with CUF: Matchmaking with Health & Medtech startups
More about Dealflow.eu
Supported by the European Commission, Dealflow.eu discovers and supports the most promising EU-funded innovators and connects them with relevant investors and corporates. The initiative was launched to help groundbreaking innovations secure the funding needed for their future commercialisation by offering them tailored support and matchmaking services.
To learn more about Dealflow.eu, visit https://dealflow.eu/
Disclaimer: Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Directorate-General for Communications Networks, Content and Technology. Neither the European Union nor the granting authority can be held responsible for them.
