An emblematic example of rural transformation, Fundão is located in central Portugal, between the Serra da Estrela and the Serra da Gardunha. Traditionally an agricultural region, Fundão has successfully reinvented itself as a thriving hub for innovation, entrepreneurship, and digitalisation, balancing rural identity with modern economic dynamics.

What makes Fundão unique is its strategic vision for rural resilience, which integrates sustainable food systems, circular bioeconomy, and smart technologies. The municipality has developed an innovation-driven ecosystem that attracts startups, remote workers, and investment, while ensuring that local businesses and agricultural enterprises benefit from new knowledge, digital transformation, and international collaboration.

As a FoodCoP Startup Village, Fundão is committed to accelerating the green and digital transition in rural Europe, positioning itself as a testbed for sustainable food innovation and a model for the next generation of rural economies.

KEY PROJECTS & FOCUS AREAS

Fundão is a historically agricultural territory that has evolved into a dynamic hub for innovation and entrepreneurship, attracting startups, businesses, and global talent to Portugal’s interior. The municipality embraces an open and collaborative approach, supporting innovative projects regardless of sector, while leveraging the strategic opportunities of the region.

Key areas of growth include:

• AgriTech & Food Innovation – Modernising agriculture through new technologies, automation, and sustainable resource management.
• Creative & Digital Industries – Attracting tech talent, software development, and digital creativity applied to rural settings.
• Green Economy & Sustainability – Projects focused on energy efficiency, renewable energy, and environmental impact.
• Entrepreneurship & Remote Work – An accessible and well-connected ecosystem that welcomes digital nomads, freelancers, and startups.

Fundão’s vision is to strengthen its role as a living lab for testing innovative solutions in rural areas, attracting talent, investment, and new ideas that contribute to the resilience and future of small European towns.

ONGOING EFFORTS & ACTIONS

Fundão is fostering an innovation-driven ecosystem that supports entrepreneurship, sustainability, and digital transformation. The A Praça Incubator and coworking spaces provide essential infrastructure for startups, offering tailored support, mentorship, and networking opportunities.

Agriculture and sustainability are key focus areas, with the Agrotech Center and experimental fields driving innovation in precision farming, climate-resilient food production, and bio-based solutions. The FabLab Aldeias do Xisto enables digital prototyping, supporting local businesses and makers, while the Fundão Music Incubator strengthens the cultural and creative industries.

Sustainability efforts include renewable energy integration, circular economy principles, and climate resilience, aligning with broader regional and EU goals. Fundão is also positioning itself as an attractive destination for remote workers and digital professionals, leveraging its quality of life and strategic incentives.

Through dedicated infrastructure, targeted initiatives, and a commitment to innovation, Fundão is paving the way for a resilient and competitive rural economy, reinforcing its role as a model Startup Village.

LOCAL IMPACT

Fundão has become a rural innovation hub, attracting businesses and talent by combining quality of life with professional opportunities. Strategic investments in digital transformation, entrepreneurship, and agrifood innovation have strengthened local production and fostered new business models.

Over 1,000 new jobs have been created in ICT and tech-driven industries, significantly reducing outmigration. At the same time, the council has welcomed more than 70 nationalities, contributing to a positive migration balance and enhancing the diversity of the local workforce.

Meanwhile, precision farming, digital tools, and regenerative practices are modernising the agricultural sector and adding value to local products. Additionally, education and training initiatives are equipping young professionals and entrepreneurs with the skills needed to thrive in an evolving economy.

Fundão’s innovation ecosystem, supported by business incubators, coworking spaces, FabLabs, a creative industries hub, the Agrotech Center, and experimental fields, fosters entrepreneurial growth and cross-sector collaboration.

By leveraging its strengths and fostering a culture of collaboration, Fundão demonstrates that rural areas can be dynamic, competitive, and resilient, serving as a benchmark for rural transformation and innovation.

Despite its progress, Fundão continues to face structural and economic challenges that impact its long-term development:

• Demographic sustainability: While migration trends are improving, retaining young talent remains a challenge, as urban centres still offer more career opportunities.
• Economic diversification: The local economy needs to further expand beyond agriculture and IT, ensuring sustainable job creation across multiple sectors.
• Climate resilience: The region is vulnerable to droughts, extreme temperatures, and soil degradation, requiring continuous adaptation efforts in agriculture and land management.
• Access to investment: Rural businesses and startups often struggle to secure funding and venture capital, limiting their growth potential.

Addressing these challenges requires strategic partnerships, innovative funding mechanisms, and knowledge exchange, positioning Fundão as a resilient and forward-looking rural economy.

Fundão is uniquely positioned to leverage its strengths across multiple sectors, creating new economic opportunities while reinforcing its role as a model for rural innovation. Digital transformation can further enhance local businesses by integrating advanced technologies such as IoT, AI, and blockchain, particularly in agriculture, industry, and services. The AgroTech Center and experimental fields present strong potential for scaling sustainable farming practices, adding value to the agrifood sector, and expanding bioeconomy initiatives.

Beyond agriculture, the creative industries and tourism sectors hold untapped potential. The region’s natural beauty, cultural heritage, and gastronomy can drive sustainable tourism, while investments in coworking spaces, incubation programmes, and remote work initiatives can attract digital nomads and creative professionals.

Strengthening international partnerships, improving digital and transport connectivity, and fostering green innovation will be key to positioning Fundão as a dynamic and resilient rural hub, capable of attracting investment, talent, and long-term sustainable growth.

Fundão has established an extensive network of strategic partnerships to support its development. Collaborating with IAPMEI, Portugal Ventures, and Startup Portugal, it fosters entrepreneurship and investment attraction. As a member of OASC (Open & Agile Smart Cities), it advances digital transformation. The municipality is engaged in over 30 international projects (Horizon Europe, Interreg, Erasmus+), strengthening its innovation ecosystem. Partnerships with Smart Farm Colab and ForestWise Colab drive agritech and sustainability initiatives. Additionally, as part of UNESCO’s Global Network of Learning Cities, Fundão reinforces its commitment to lifelong learning and economic resilience. These are just a few examples of its broad collaboration network.

Fundão is committed to sustainable food systems, circular bioeconomy, and rural resilience, embedding these principles into its territorial development strategy. The municipality actively promotes sustainable agriculture, supporting precision farming, regenerative practices, and water-efficient techniques to enhance productivity while preserving natural resources.

Efforts to strengthen local food systems include the promotion of regional products and short supply chains, ensuring fair value distribution to producers and reducing the environmental footprint of food transportation. Additionally, initiatives in agroecology and biodiversity conservation support more resilient and diversified agricultural practices.

Education and awareness play a crucial role, with community-driven programmes fostering sustainable consumption habits and promoting circular economy practices. By leveraging FoodCoP and other EU-funded projects, Fundão continues to develop innovative approaches that align economic growth with environmental sustainability, reinforcing its role as a forward-thinking rural innovation hub.

Manuel Poppe, Owner & Co-Founder at StarMountain

«Participating in the FoodCoP event was a valuable opportunity for StarMountain to connect with other innovative initiatives and share key knowledge on sustainable practices and the circular economy. The FoodCoP project, with its focus on innovative rural villages and sustainability, aligned perfectly with our company’s values, which seek to integrate technological solutions to promote efficiency and transformation of agri-food systems.

Fundão’s innovation ecosystem has been fundamental in supporting our growth. The collaborative network and entrepreneurial environment that Fundão offers not only provides a space for the development of innovative ideas, but also ongoing support and a constant exchange of experiences. This interaction with other entrepreneurs and experts has been crucial in improving our solutions, increasing our impact and broadening the visibility of our projects.

Participating in this ecosystem has been a great boost for StarMountain, allowing us to improve our bioeconomy practices and strengthen our sustainable approach in the agro-medical and agri-food sectors. Working with the FoodCoP project has only enriched this journey, connecting us to a network of change-makers who share the vision of a greener and more inclusive future.

We are excited about the growth prospects that this partnership offers and the opportunities to replicate the sustainable initiatives promoted by the FoodCoP project, contributing to a more resilient and sustainable ecosystem across Europe.»