Cyprus has emerged as a promising player in the global venture capital landscape. With its rapidly growing startup ecosystem and government initiatives fostering innovation, Cyprus has become a compelling destination for investors, both local and international. While the total volume of startup fundraising in the country has yet to surpass the $100 million mark, it is undeniable that Cyprus possesses the potential to significantly boost available capital and attract companies that could evolve into future unicorns.

At the Reflect Festival 2023, a panel of venture capital experts shared invaluable insights into the evolving dynamics of venture investing in Cyprus. Andreas Panayi and Demetrios Zoppos provided essential guidance to startups aiming to thrive within the nation's burgeoning tech ecosystem. Kirill Gurskiy delved into how Cyprus can cultivate a global mindset, enabling its startups to compete effectively on the international stage.

Andreas Panayi, Co-founder of Kinisis Ventures, and Demetrios Zoppos, co-founder of 33 East and an observer of early-stage capital in Cyprus, offered valuable advice to startups looking to thrive in the island nation's evolving tech landscape.

Both underscored the importance of a thriving ecosystem for startups, entrepreneurs, and investors. Cyprus is ripe with early-stage opportunities, but it's essential for startups to strike a balance between capital acquisition and sustainable business growth.

Andreas' key message was clear: startups must avoid over-reliance on grants for funding. While grants can provide initial support, they should not become a crutch that stifles the development of self-sustaining businesses. Investors seek companies capable of generating capital, and startups should strive to demonstrate this capability.

Demetrios pointed out a critical gap in the commercialization stage of startups in Cyprus. While there is ample early-stage capital, startups often struggle to secure organized venture funding for the crucial step of commercialization. Cyprus boasts diverse ecosystems, each with unique strengths, but startups must carefully evaluate whether their offerings are commercializable.

The overarching theme is the necessity of nurturing ecosystems in Cyprus. Building a thriving startup environment involves learning from experienced individuals, fostering a vision for success, and bridging the commercialization gap.

Kirill Gurskiy, Managing Director at GEM capital, one of the largest VC funds in gaming and entertainment, provided insights into how Cyprus can foster a global mindset and compete on the international stage.

Kirill emphasized that “startups in Cyprus must adopt a global perspective from day one.” Building products and services with global potential should be a core strategy. While Cyprus may not have a formula to directly enter the US market, it can attract foreign investors who play a pivotal role in filling funding gaps.

Cyprus's unique community and increasing appeal to US and Asia-based investors are indicators of its potential as a global tech hub. The influx of talent, driven by various factors, further strengthens its position. However, Kirill highlighted the importance of legislation and ongoing community collaboration.

The Reflect Festival 2023 discussions on venture investing in Cyprus provided comprehensive guidance for startups. Andreas Panayi and Demetrios Zoppos stressed the need to balance capital acquisition and sustainable growth, tying into Kirill’s encouragement for the adoption of a global mindset. By embracing these insights and nurturing its burgeoning tech ecosystem, Cyprus can position itself as a key attraction in the world of venture investing.