The first Cyprus Equity Fund enters the realm of startups and innovation, enabling innovative small and medium-sized enterprises (SMEs) and startups to access essential funding.

The fund, supported by the Government of Cyprus and the European Investment Fund (EIF) of the European Investment Bank (EIB), is managed by 33 East Venture Capital. It aims to assist businesses adopting innovative business models or products.

The initial capital of €26 million includes €19 million from the Cyprus Equity Fund, backed by the National Recovery and Resilience Plan, and €7 million from private investors, including a €2 million contribution from Bank of Cyprus.

According to 33 East Venture Capital, “Startups and innovative companies face challenges accessing funding due to the high-risk nature of their activities. The fund aims to bridge this financing gap.”

The fund simultaneously supports two primary goals of the EIF: fostering innovative entrepreneurs and building regional venture capital ecosystems. It also aims to commercialize technologies in high-growth categories targeting expansion into major international markets.

33 East, as an early-stage investor, focuses on pre-seed and seed-stage startups. Initial investments range from €500,000 to €1 million per company, while €2.5 million is allocated to an acceleration program to support earlier-stage startups.

As part of its outreach, the fund highlights: “We are looking for founders who are persistent, focused, and striving to solve big problems in large markets.”

33 East Venture Capital, selected through a competitive process, specializes in technology-driven sectors with potential for expansion beyond Cyprus, such as fintech and most B2B categories. However, the firm is open to investing in other sectors, including Cypriot and non-Cypriot businesses seeking a presence in Cyprus.

The management team has invested in some of the world’s best-performing funds and is connected to startup ecosystems across Europe and beyond. They assist potential startups or innovative businesses in identifying the right investors to propel their growth.

As the fund explains, its goal is “to support startups by providing capital, guidance, and connections, while helping transform Cyprus into a hub of innovation and entrepreneurship.”

The fund is led by Dimitris Zoppos, an entrepreneur and investor with over 25 years of experience in early-stage technology companies, and Yiannis Eftychiou, a seasoned venture capital investor with extensive expertise in high-growth companies across Europe, Africa, and Asia.

The team believes Cyprus offers immense opportunities for new entrepreneurs. Leveraging their expertise in early-stage investments, they aim to support the country’s rapidly growing tech ecosystem and attract high-potential entrepreneurs to Cyprus.

Startups interested in applying for funding are invited to contact 33 East Venture Capital through their website: www.33east.vc.