Cypriot start-ups are set to receive a major financial boost as venture capital firm 33East, together with the European Investment Fund (EIF), has raised €26 million to support innovative projects.
Of the total amount, €19 million is public money from the Cyprus Equity Fund (CEF), while €7 million comes from private investors, including the Bank of Cyprus, which will invest €2 million.
Speaking at the launch of the fund on Thursday 27 February, EIF Vice-President Kyriacos Kakouris stressed that the aim of the initiative was to strengthen the regional market and increase its global competitiveness. For his part, Andreas Zachariades, Permanent Secretary at the Cypriot Ministry of Finance, noted the difficulty of developing start-ups on the island, as high risks make it difficult to attract funding. The new fund will therefore help to overcome these barriers and create a more favourable environment for entrepreneurs.
According to 33East co-founder Yannis Efthychiou, the fund will focus on investing in idea-driven and driven founders, rather than just market trends. It is expected that up to two companies per quarter will receive financial support. The focus will be on startups with international potential, particularly in areas such as fintech, digital health and artificial intelligence. However, a small portion of the funds may be allocated to global projects, with a focus on Cypriot and Cypriot-related companies. Asked about support for women's tech start-ups and eco-technologies, Efthihiou was optimistic, noting that such initiatives will emerge as the market matures.
It is worth recalling that Cyprus was named the fastest growing start-up centre in the EU in 2024, while Limassol has strengthened its position as a key technology hub in Southern Europe.
This has been influenced by the influx of international IT companies from Russia, Israel and Ukraine. Since 2020, the Cypriot startup sector has grown fivefold, ranking 39th in the world in fintech and 25th in innovative technologies. 33East's initiative and the new fund are another step towards making Cyprus a European hub for technology startups with global potential.