This article focuses on the effects of PhD funding on research performance both during the degree and throughout researchers' careers as measured through publications and citations. This analysis draws from a representative sample of researchers holding a doctorate based in Portugal and finds that those funded by grants during the PhD perform better than the self-funded ones. It also finds that different PhD funding sources produce different outcomes. PhD grants positively affect research performance during the PhD and throughout the career, when compared with research project grants. We argue that the latter funding scheme has more limited effects because of the constraints typical of early stage researchers involved in research project dynamics.