Madeira Emerges as a Startup Hub Focused on Blockchain and AI

The Madeira archipelago in Portugal is becoming a hotspot for startups in emerging technologies such as blockchain and artificial intelligence. With the technology sector now representing approximately 30% of the island's businesses, Madeira is experiencing a significant shift from its traditionally tourism-driven economy.

Startup Networking and Discussions at the Madeira Blockchain Conference

The local tech community is at the forefront of this transformation, organizing the Madeira Blockchain Conference. This two-day event aims to promote networking among startups and facilitate discussions on how blockchain can solve real-world problems.

CoinTelegraph reports that the conference, held at the Cultural and Research Center of Funchal (CCIF), has identified key takeaways from the event.

Gaming Studios Quietly Embrace Blockchain

Gaming companies are quietly exploring blockchain technology, avoiding buzzwords to prevent backlash from players and developers. Traditional game studio Redcatpig has encountered obstacles in integrating blockchain features into its games. CEO Marco Bettencourt emphasized the importance of not overwhelming players with technical jargon. Instead, the focus should be on providing ownership and the ability to trade in-game items like skins. Redcatpig plans to launch its first blockchain-based game in 2024, offering nonfungible token (NFT) skins and drones for trade with fiat or cryptocurrency.

Insights for Startups Raising Funds

Alexandre Mendes, head of ventures and strategy at Subvisual, provided valuable insights for startups in the Web3 space looking to raise capital. Mendes stressed the importance of understanding that "not all money is the same" when seeking investment. Startups should have a clear strategy for the types of investors they want and how they will participate in governance. Mendes also cautioned against launching a token without a solid product, noting that not every project needs a token and that many startups have failed to deliver after successfully launching a token.

Madeira's Incentives for Startups

Madeira is actively supporting the growth of startups by offering attractive incentives. The region's free trade zone provides tax benefits, including one of the lowest corporate tax rates in the European Union and a capital gains tax exemption. According to Rogerio Gouveia, finance secretary of Madeira's regional government, the tax regime in the Madeira free zone caps the corporate tax rate at a competitive maximum of 5%. Gouveia emphasized that Madeira operates under regulations and guidelines to promote economic growth rather than being an offshore haven.

In addition to tax incentives, Madeira is developing a blockchain-based payment network to enhance currency exchange for tourists and optimize government operations. This network, currently in the feasibility study phase, will allow tourists to load funds onto a single debit card for use across the archipelago. Madeira also plans to utilize the same card system for the distribution of public benefits to residents.

With its favorable business environment and focus on emerging technologies, Madeira is positioning itself as a trailblazer in the startup scene.